TG992 From New Zealand, joined Jan 2001, 2910 posts, RR: 10 Posted (13 years 8 months 1 week 2 days 5 hours ago) and read 5304 times:
Qantas have announced they plan to buy a significant stake in Air New Zealand from shareholders Singapore Airlines and Brierly who currently own 30 and 25% of the company. Singapore Airlines have also announced they plan to purchase Ansett from Air New Zealand eliminating the competitive issues in Australia.
Will have to wait until more detailed info is known before making comments or passing judgement
Airlines view shake-up
QANTAS has been approached to take a significant stake in Air New Zealand in a deal which would also see Ansett sold.
The proposal would involve Air New Zealand selling Ansett and Ansett International to Singapore Airlines, Qantas said today.
The airline has had preliminary discussions with Air New Zealand's major shareholders, Singapore Airlines and Brierley Investments Ltd.
It has also held talks with Air New Zealand chairman Sir Selwyn Cushing.
A Qantas statement said chief executive officer Geoff Dixon would await further advice or contact from the board of Air New Zealand and the two major shareholders before deciding whether it will take the matter further.
Earlier Air NZ said Qantas had approached its board, which was considering a proposal.
"Air New Zealand ... has been approached by Qantas for the development of a transaction which would involve the acquisition by Qantas of a significant shareholding in Air New Zealand from the two major shareholders, namely Brierley Investments Ltd and Singapore Airlines Ltd," the company said.
"The proposal is conceptual and no valuations have been incorporated in the proposal at this stage."
The Air NZ board said it was too early to form a view on the proposed acquisition.
However, it said it would consider the proposal "in the interests of all shareholders", and had established an independent committee of directors to consider it and other options.
Expert advice is also being sought by the committee.
Dalecary From , joined Dec 1969, posts, RR:
Reply 2, posted (13 years 8 months 1 week 2 days 4 hours ago) and read 4606 times:
here is the article:
Qantas in Air NZ talks
Tuesday 29 May 2001, 10:05 AM
Qantas Airways Ltd has held preliminary discussions with Air New Zealand's board about taking a "significant shareholding" in the rival airline, Air NZ said today.
The board said Qantas had approached it to develop "a transaction which would involve the acquisition by Qantas of a significant shareholding in Air New Zealand from the two major shareholders".
Those shareholders were Singapore-based Brierley Investments Ltd and Singapore Airlines Ltd.
Qantas said in a statement the transaction under consideration would involve Qantas taking the significant stake in Air NZ and with Air NZ selling Ansett and Ansett International to Singapore Airlines.
"Following the approach, Qantas had preliminary discussions with the major shareholders in Air New Zealand, Singapore Airlines and Brierley Investments Limited, and also the Chairman of Air New Zealand, Sir Selwyn Cushing," Qantas said.
Qantas chief executive officer Geoff Dixon said Qantas will await further advice or contact from Air NZ's board and the two major shareholders before it decides whether to take the matter further.
Air NZ chairman Sir Selwyn Cushing said he was stepping aside as chairman pending the outcome of the Qantas proposal.
"The proposal is conceptual and no valuations have been incorporated in the proposal at this stage," the Air NZ board said in a release to the Australian Stock Exchange.
It added that it is too early to form a view on the proposed acquisition.
However, it said it would consider the proposal "in the interests of all shareholders", and had established an independent committee of directors to consider this and other options.
Expert advice was also being sought by the committee.
Sir Selwyn Cushing was stepping aside immediately as chairman and he also intended to make a statement to the Singapore Stock Exchange regarding his chairmanship of Brierley Investments later in the day, Air NZ said.
However Sir Selwyn will remain a director of both Air New Zealand and BIL.
"It is inappropriate in the circumstances for Sir Selwyn to make any further comment," Air NZ said.
Al From Australia, joined Jun 1999, 593 posts, RR: 2
Reply 6, posted (13 years 8 months 1 week 2 days 4 hours ago) and read 4573 times:
"If the deal does go through it means that ANZ will sell 100%of Ansett Australia, and their 50%of Ansett International??
Can't SIA only aquire 49% of AN? Where would the other 51% go to?"
It's only a technicality and a "paper" requirement to get the 100% of AN to SQ through Government. Subject to appropriate checks and balances SQ can take the 100% of AN itself and up to 49% of AN International. There is no way in hell that any Government in an election year would not allow SQ the 100% of AN if it wanted it! Legislation currently allows 100% foreign ownership of any domestic carrier - flag carriers (such as AN International) have a ceiling of 49%.
Interesting times - but if the NZ board have set up an independent committee to study the proposal, *anything* is possible. It certainly does highlight how precarious things must be in Auckland though if they are willing to listen to and study the proposal.
Tullamarine From Australia, joined Aug 1999, 1657 posts, RR: 1
Reply 7, posted (13 years 8 months 1 week 2 days 3 hours ago) and read 4564 times:
The real question is what happens to Gary Toomey. He and Geoff Dixon are not close. They haven't spoken since last year and given GT's comments in Saturday's Melbourne Age we can assume that he has little time for Dixon who he portrays as a media junkie.
If and at this stage it's a big if, NZ falls to QF then it would be hard to see GT working for GD. I assume he'd prefer to be the CEO of a cashed up AN. It would also enable him to move back to MEL which would undoubtedly suit him and his family.
Oz777 From Australia, joined Jun 2000, 521 posts, RR: 5
Reply 11, posted (13 years 8 months 1 week 2 days 2 hours ago) and read 4538 times:
Hang on....Hang on. All QF have said is that they are talking to the shareholders. That has to be reported to the stock exchanges, and Selwyn Cushing has to step aside due to conflict of interest.
There are a number of curly ones here. It effectively creates a monopoly on the Trans Tasman and NZ domestic operations.
This is a typical move by QF. If you see a threat to direct competition, go to the shareholders....that is what they did to Impulse.
Also, under the NZ Govt rules, only 25% can be owned by a foreign carrier, and majority ownership must still be vested in the NZ "A" shares (owned by NZers or NZ companies of which BIL is still constituted).
I think this is a smart move by Geoff Dixon - it just tightens the screws a little more. Think about it. Would QF prefer a cashed up owner of AN, or the currnt arrangement.
The proposal is always a possibility, but there are MASSIVE hurdles to be overcome, and the NZ Govt has not shown any commitment to changing the rules.
So Mikey, you might still get to wear your sister's uniform yet (Just kidding!!!)
Tullamarine From Australia, joined Aug 1999, 1657 posts, RR: 1
Reply 13, posted (13 years 8 months 1 week 2 days 2 hours ago) and read 4525 times:
Will the NZ regulatory authorities approve this transaction? I don't see an issue in Australia as AN merely moves from one foreign owner to another and even then it is arguable that the new owner would increase competition in Australia due to their very deep pockets.
In NZ, however, a foreign company would control NZ and gain ownership of "A" Class shares which are meant to be domestic only. (This is despite the fact the BIL is only nominally a NZ company these days.) Also NZ would end up with a monopolistic domestic aviation scene as QF would immediately withdraw from the domestic market leaving NZ alone as the domestic carrier.
There is no way SQ/AN would want to be involved in the NZ domestic scene especially given the losses suffered by AN/QFNZ and the fact that QF/NZ would dominate trans-Tasman travel meaning feed traffic would be virtually zero.
All this tends to suggest that the NZ Competitions Commission will struggle to approve the deal unless the government wants it to happen.
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1
Reply 14, posted (13 years 8 months 1 week 2 days 2 hours ago) and read 4521 times:
Aviatsiya, Its obvious someone took notice of your
strong posting yesterday . This is great news
and the biggest shake up in Australian aviation, the
mind boggles at what fleet upgrade Ansett will get
now, A380 anyone.
Docpepz From Singapore, joined May 2001, 1971 posts, RR: 3
Reply 17, posted (13 years 8 months 1 week 2 days 1 hour ago) and read 4491 times:
We all know that SQ bought a 25% stake in ANZ for AN right? I mean, why would SQ be interested in ANZ at all? There are more people in Singapore than New Zealand, and ANZ hardly flies anywhere these days, and NZ is located in the furthest corner of the world. ANZ stopped direct services to DPS and now codeshare with SQ. They stopped direct services to BKK and now codeshare with SQ.
Well it looks like the two Aussie rivals to QF, Ansett and Virign Blue, have links to SQ, and indirectly, the Singapore Govt. Wonder how Australia would feel about that. Even the purchase of Optus by Singapore Telecom means that Optus now has indirect links to the Singapore govt.
I don't know how Australians feel but I would feel kind of uneasy if the big corporations in my country were slowly taken over by the government of another country, whether directly or indirectly!
Mx5_boy From , joined Dec 1969, posts, RR:
Reply 18, posted (13 years 8 months 1 week 2 days 1 hour ago) and read 4498 times:
SYDNEY - (Dow Jones)-Singapore Airlines Ltd. (P.SAL) said Tuesday that management-level talks have been held with Qantas Airways Ltd. (A.QAN) about the Australian national carrier buying SIA's 25% stake in Air New Zealand Ltd. (A.AIZ).
"Qantas' plan is to acquire substantive ownership of Air New Zealand by also buying Brierley Investment Ltd.'s (A.BRY) shareholding in the New Zealand carrier, and for Air New Zealand to sell all of Ansett to Singapore Airlines," Singapore Airlines said in a statement issued from its Sydney office.
Singapore Airlines also issued the statement to the Singapore Stock Exchange.
"The proposal is only a concept. In the interests of shareholders, Singapore Airlines must consider with care the strategic and financial implications of the proposition and weight it against other options that are available," it said.
Singapore Airlines has a 25% stake in Air NZ, while Brierley Investments has 30%.
Ansett is a major Australian domestic carrier that competes with Qantas. The two have faced stiff competition from no-frills startups Impulse Airlines Ltd. and Virgin Blue in the past year, but the local competition regulator recently allowed Qantas to take over Impulse.
Ansett has lost market share in recent months, exacerbated by the grounding of its entire 767 fleet around Easter due to safety concerns, which highlighted the financial problems of Ansett and its Air NZ parent.
(Copyright (c) 2001, Dow Jones & Company, Inc.).
DOW JONES INTERNATIONAL NEWS 29/05/2001
Laserjet From New Zealand, joined Apr 2000, 193 posts, RR: 0
Reply 19, posted (13 years 8 months 1 week 2 days 1 hour ago) and read 4483 times:
I'm being completely patriot here, but I don't like the sound of this plan. The last thing we want to have in the Australasian air market is a pally relationship being Air NZ, Qantas and Singapore Airlines. Also Singapore Airlines has a large stake in Virgin Atlantic, and in turn Virgin Blue. The ultimate result is likely to mean less competition across the Tasman, a return to a duopoly in Australia, and a monopoly in NZ.
I know Ansett and its parent Air NZ are struggling, but they have a strong future, if they can get past this hurdle. Both airlines have a great product, which should see them both right. Patience.
SQFFP From Canada, joined May 2001, 45 posts, RR: 0
Reply 21, posted (13 years 8 months 1 week 2 days ago) and read 4478 times:
If QF really buys Air NZ and SQ buys Ansett, would there be any changes with regard to the existing alliances? We all know that Air NZ, Ansett, and SQ belong to the star alliance, whereas, QF belongs to one world.
Jupiter2 From Australia, joined Jan 2001, 927 posts, RR: 1
Reply 22, posted (13 years 8 months 1 week 2 days ago) and read 4462 times:
Personally I think this would be good for the 3 major airlines in OZ/NZ, QF and NZ would own the South Pacific in turn so would OneWorld. The QF/NZ fleets are nearly identical and maintenance costs and the like could be reduced through economies of scale. Adding to that ANZ would have access to the recent QF orders if only through the excersing of options for partial fleet replacement.
For Ansett there would be the much needed capital injection and I think you would find that they would be expected to operate trans Tasman in a big way, forget about the N.Z domestic market, no offense to those in N.Z but probably not worth the effort. Ansett International would also be expected to start those much talked about services to the U.S as there parent SQ would expect them to have at least a reasonable presence in the trans Pacific market, as well as trans Tasman.
In turn Virgin Blue could become the low cost operator that Ansett needs to compete with the lost cost QF operation with the old Impulse fleet which is operated under contract, remembering that SQ holds 50% of Virgin Atlantic and I'm sure that Sir Richard would like to see some return on his investment before it to goes under.
All in all you would find a much stronger QF/NZ and AN as they would all benefit, in particular I feel that Ansett would in the long term be the big winner if only through the opportunity to update its fleet and have the owner they wanted all along.
Also from what I have been reading this looks like it has been under discussion for quite a while, as QF/NZ/SQ as well as Brierley investments have all released the statements to media and respective stock exchanges at the same time. I would not surprise me that this set of deals is only requiring finalisation of prices and government approvals.
QantasAirways From Australia, joined Mar 2001, 1280 posts, RR: 3
Reply 24, posted (13 years 8 months 1 week 1 day 23 hours ago) and read 4439 times:
That article has just made the highlight of my day!!!
Great move QF! Well done!
I am happy with this whole plan actually.
I think it is great that QF is looking into buying the stake, and I think it is just as good to see Ansett go from ANZ to Singapore Airlines!
I hope the best for Qantas, and I hope the governments approve of it. But certainly, there will be very much debate about this between the two airlines. Will Air New Zealand really want this?