United we stand says airline

Friday 10th August 2001

By Graeme Kennedy

The Air New Zealand board has moved quickly to dispel reports of a division among directors over Singapore Airlines' proposal to increase its 25% stake in the carrier.

The board held a special meeting this week to reaffirm its unanimous support for the SIA plan and discuss the implications of the government's new approach to considering the preferred Singapore option against Qantas' offer to buy into the airline.

Acting chairman Jim Farmer said the government's action last week in setting up a special negotiating committee to consider both proposals following representations from Canberra had been unexpected.

"We considered the Qantas option was not on the table and the government's considering both our and Qantas' proposals added a new dimension ," Dr Farmer said. "The board called a special meeting to consider the implications of that. The matter was discussed generally and directors reaffirmed their unanimous support for the SIA proposal."

Dr Farmer said he understood Finance Minister Michael Cullen had suggested differences of opinion had risen among Air NZ directors and management about the merits of the SIA scheme.

He said a joint letter signed by all Air New Zealand board members confirming support for the SIA option would be sent to Dr Cullen.

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