Docpepz From Singapore, joined May 2001, 1953 posts, RR: 3 Reply 1, posted (12 years 3 months 4 days 20 hours ago) and read 1574 times:
Wow, I suppose 40%'s a better compromise than 35%. Is your source reliable? Will there be a press conference later today?
And what are you working as in Air New Zealand? I mean, your profile says you're 16-20 years old. You a clerical officer or something? When I was 16, I worked in SIA as a clerk during the holidays. Hated it immensely, as the job was so boring.
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1 Reply 4, posted (12 years 3 months 4 days 18 hours ago) and read 1495 times:
This was in todays NZ "The Dominion"that I posted
10 hrs ago.
"Singapore Airlines wants to increase its holding from 25 per cent to 49 per cent and sources said the Government had still not decided whether to allow the move. It is understood the Government may opt for allowing Singapore Airlines 40 per cent."
The breaking news as of 15 min ago is that Virgin Blue
has rejected Air NZ offer, Qantas shares just fell 6c
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1 Reply 5, posted (12 years 3 months 4 days 17 hours ago) and read 1454 times:
Tuesday September 4, 1:36 PM
Virgin Blue rejects Air New Zealand takeover offer
MELBOURNE, Australia, Sept 4 (AFP) -
Budget carrier Virgin Blue reasserted its determination to remain an independent entity Tuesday by rejecting a 250 million dollar (133 million US) takeover offer from Air New Zealand.
Virgin's founder, British billionaire Richard Branson, announced the rejection of the New Zealand carrier's offer following a series of meetings with political leaders and competition regulators here.
"Australians have benefited dramatically since Virgin Blue cut airfares in half over 12 months ago," Branson said in a statement.
"Four million more people flew this year than last. People who literally couldn't afford to travel by air before are now flying often.
"Although we could have walked away with a 250 million dollar net profit on our investment, I felt it would be selling out both the Australian public and our delightful staff at Virgin Blue."
Branson did not, however, rule out an operating alliance with Air New Zealand's wholly-owned cash-strapped Australian-based carrier, Ansett.
"If Ansett feels that some regional routes are not viable due to their higher costs, we would be happy to assist by offering seats to them on flights we would operate.
"For many years the Virgin Group has had an excellent relationship with both Ansett and Air New Zealand.
"Air New Zealand assists us in heavy maintenance of Virgin Atlantic's 747s while Ansett International and Virgin Atlantic jointly provide the highest quality service on the Kangaroo route."
AJ From Australia, joined Nov 1999, 2380 posts, RR: 26 Reply 10, posted (12 years 3 months 4 days 16 hours ago) and read 1409 times:
In the media release regarding Virgin Blue it fails to mention that Sir Richard started his news conference with tears in his eyes announcing that he had sold Virgin Blue to Air New Zealand and was going home with a quarter of a billion dollars. He then showed a Qantas Staff Credit Union cheque for that sum before saying:
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1 Reply 12, posted (12 years 3 months 4 days 6 hours ago) and read 1280 times:
Air NZ knocked back on Virgin deal
05 September 2001
Air New Zealand has been dealt a body blow by British tycoon Sir Richard Branson who has refused to sell his Virgin Blue airline to subsidiary Ansett Australia.
Ansett, which has 40 per cent market share, needed Virgin Blue - with 5 per cent of the Australian market and growing - to achieve the critical mass to compete against Qantas.
But Sir Richard told the Australian media yesterday that Ansett was bleeding A$1 million (NZ$1.2 million) a day and losing market share.
Urgent talks were expected to be held last night between Air New Zealand and 25 per cent shareholder Singapore Airlines to find a way of recapitalising the ailing national carrier, but the failed Virgin deal added uncertainty to Air New Zealand's future.
One market commentator said yesterday that given that Singapore Airlines had said it was not interested in Ansett Australia, it might not be interested in increasing its stake in Air New Zealand without the benefit of Virgin Blue as part of the equation.
Sir Richard said he had rejected the Air New Zealand offer following strong support from a number of key politicians and the travelling public.
Rather than sell the cut-price carrier, Sir Richard said Virgin Blue would be investing "many millions" in expanding its fleet and establishing new routes.
He said if Ansett believed some regional routes in Australia were not viable, Virgin Blue would be happy to assist by offering seats on its own flights.
Centre for Asia Pacific Aviation Studies managing director Peter Harbison said Sir Richard's rejection of the Air New Zealand approach was academic in the long run because Australian consumer watchdogs would not have allowed the deal to proceed anyway.
The deal would have taken a key competitor out of the Australian market, he said.
Mr Harbison said despite the seriousness of the situation at Ansett Australia, the airline would not be allowed to collapse. The Australian Government would not want to lose 15,000 jobs at the country's second largest airline in an election year.
Mr Harbison said if Air New Zealand had been able to buy Virgin Australia it would have made the recovery of Ansett Australia easier and faster.
"What we are seeing here, in broad terms, is the inevitable showdown between commercial pressures and regulatory hard places."
Rmm From Australia, joined Feb 2001, 521 posts, RR: 1 Reply 15, posted (12 years 3 months 4 days 3 hours ago) and read 1244 times:
It's still not over until the fat lady sings.
WEDNESDAY, 05 SEPTEMBER 2001
N A T I O N A L N E W S S T O R Y
Air NZ rescue package falters
05 September 2001
By NICK VENTER and ROELAND VAN DEN BERGH
A decision on the future of Air New Zealand has slipped back
because of concern over the viability of the rescue package
being put together for the airline.
Urgent talks were taking place last night between Air New
Zealand and 25 per cent shareholder Singapore Airlines to find a
way of keeping alive the deal which would allow Singapore
Airlines to lift its stake from 25 per cent to 40 per cent.
Prime Minister Helen Clark said on Monday that the Government
hoped to announce some decisions before Finance Minister
Michael Cullen left for an Apec finance ministers meeting
tomorrow. But sources said it was unlikely there would be any
The Government and Singapore Airlines are understood to have
been close to agreement on the deal. But progress stalled
yesterday because of doubts over the sustainability of the
proposal. Qantas began due diligence on Air New Zealand last
The deferral could fuel speculation that Air New Zealand needs a
bigger cash injection than previously flagged.
Air New Zealand is expected to announce losses of about $200
million next week, and has said it needs $1 billion to upgrade its
ailing subsidiary, Ansett Australia.
Company spokesman David Beatson said he could not comment
on what reasons the Government might have for not proceeding
with an announcement today.
The directors were "comfortable" with market predictions of a
$200 million loss, he said.
In the latest blow for Air New Zealand, British tycoon Sir Richard
Branson said yesterday he had decided against selling his Virgin
Blue airline to Ansett Australia.
Ansett, which has a 40 per cent market share, needs Virgin Blue
to compete against Qantas on equal terms. The cut-price airline
has secured a 5 per cent share of the Australian market in 12
months and is growing.
Sir Richard said Ansett was bleeding A$1 million (NZ$1.2 million) a
One market commentator said Singapore Airlines might not be
interested in increasing its stake in Air New Zealand without
Virgin Blue as part of the equation.
Sir Richard said he could have walked away with an A$250 million
(NZ$305 million) profit on his investment, but it would have
involved "selling out" the Australian public and staff.
Air New Zealand shares held their ground yesterday after
slipping to all-time lows on Monday. The domestic A shares rose
2c to 92c and the B shares were unchanged at 106. At those
prices, Singapore Airlines has lost about a third of its investment
of more than $600 million.
Bruneiair From , joined Dec 1969, posts, RR: Reply 17, posted (12 years 3 months 3 days 23 hours ago) and read 1219 times:
Costello holds the joker in airlines poker game
The Australian, By: Bryan Frith
The Treasurer has the power to veto SIA's proposal
SUGGESTIONS that the Australian Government can be nothing more than a passive onlooker in the wrangle between Qantas and Singapore Airlines over the ownership and control of Air New Zealand and its struggling offshoot Ansett are wide of the mark.
The Government has the ability to play a crucial role in the outcome. It is, admittedly, a negative right that it can exercise but that doesn't make it any the less crucial.
Quite simply, the Government, or rather the federal Treasurer, Peter Costello, has the power to veto the Singapore Airlines proposal as against the national interest. If he were to do so then Singapore Airlines and Air NZ would need to find another solution, and the Qantas proposal may be the best alternative.
The Australian Government is said to favour the Qantas proposal. John Anderson, the Minister for Transport and Deputy Prime Minister, has openly supported the Qantas proposal.
Singapore Airlines wants to increase its stake in Air New Zealand from its existing 25 per cent to 49 per cent, which would give it control of Air NZ and Ansett. Qantas wants to acquire Singapore Airlines' 25 per cent stake in Air NZ and to sell Ansett and Ansett International to Singapore Airlines.
Qantas contends that if Singapore Airlines gains control of Air NZ it would become the dominant carrier in the region, gaining control of Air NZ's dominance of the NZ market and Ansett's major position in the Australian market, as well as the international activities of both Air NZ and Ansett International. As a result, Qantas would be marginalised in this region.
But Singapore Airlines says it won't sell its Air NZ stake to Qantas or anybody else. The Air NZ board says it unanimously considers that retention of Ansett is the most valuable option for the company and that it is in the best interests of Air NZ that Singapore Airlines be allowed to significantly increase its shareholding. Air NZ's managing director Gary Toomey has stated that if the NZ Government won't allow Singapore Airlines to increase its shareholding then Air NZ may instead sell Ansett to Singapore Airlines.
The approval of the NZ Government is required for a holding of more than 25 per cent of Air NZ, and the Government is reluctant to relax that cap. The NZ Cabinet is expected to decide next week whether to allow Singapore Airlines to increase its stake in Air NZ.
The NZ Government has deferred a decision until September 13 at the earliest, because Air NZ has not yet finalised its capital requirements. Although there is said to be some support for the Qantas proposal, reports from across the Tasman suggest that the NZ Government will favour the Singapore Airlines proposal (perhaps opting for a compromise of 35 per cent) because it will inject cash into Air NZ. Singapore Airlines has proposed lifting its stake by taking a share placement at $NZ1.31 a share, and has indicated that it will also support a subsequent capital raising by the NZ carrier.
The Qantas proposal does not involve any injection of equity into Air NZ, but Qantas maintains that the sale of Ansett would remove the need for the NZ carrier to obtain additional equity. Certainly the acquisition of Ansett stretched Air NZ's finances; moreover, Ansett requires a fleet upgrade, which is estimated to cost upwards of $5 billion over the next five years.
Air NZ itself has given out conflicting messages. After Qantas made its proposal known, the NZ carrier said that it didn't need a bailout and had more than adequate cash. That was then contradicted by the chairman, Jim Farmer, who said the airline needed help and couldn't sustain its position as a commercially viable enterprise on its own.
Toomey said the proposed investment from Singapore Airlines was needed for the medium to long-term survival of Ansett, which suggested that there wasn't an immediate and pressing problem. However, the sale of Ansett would probably involve a substantial loss for Air NZ, which would increase its already-high gearing and may make it prudent to obtain some additional equity.
It's difficult to disagree with Qantas that, if Singapore Airlines is allowed to increase its stake in Air NZ or simply retain its existing stake and acquire Ansett, it would become the dominant carrier in the region, whereas the Qantas proposal would deliver two major, evenly balanced competitors in this region.
An industry measure of airlines is their RPK (revenue per passenger per kilometre). At present the figure for Singapore Airlines is 71 billion RPK, Qantas 64 billion and Air NZ 21 billion. Under the Qantas proposal, Singapore Airlines would emerge with 89 billion RPK and Qantas 85 billion, almost in balance, but if Singapore Airlines was to gain control of Air NZ and Ansett it would leapfrog to 110 billion RPK, almost double that of Qantas.
The picture is much same on fleet size. Qantas at present has 111 jet aircraft compared to 93 for Singapore Airlines. If the Qantas proposal went ahead the combined Qantas-Air NZ fleet would total 149 aircraft compared to 147 for Singapore-Ansett. But if Singapore Airlines was to gain control of Air NZ and Ansett it would have 185 aircraft -- 66 per cent more than Qantas.
Singapore Airlines also has a stronger balance sheet than Qantas. It could borrow more that $12 billion before its gearing rose above that of Qantas.
There seems to be an assumption that if the NZ Government approves the Singapore Airlines proposal that's the end of the matter. But it also requires foreign investment approval from Costello, because it would involve control of Ansett effectively changing from Air NZ to Singapore Airlines.
The test is whether the Singapore Airlines proposal is against Australia's national interest. Costello recently refused Shell permission to increase its shareholding in Woodside from 34 per cent to a controlling 56 per cent on the grounds that it was against the national interest.
If the NZ Government does decide in favour of Singapore Airlines it may not be happy were Costello to effectively countermand that decision, but Costello would be duty bound to consider the national interest implications for Australia of allowing Singapore Airlines to become the dominant carrier in the region, thereby reducing Qantas to a minor role.
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1 Reply 18, posted (12 years 3 months 3 days 20 hours ago) and read 1188 times:
I think SIA /ANZ/AN thought Virgin Blue was in the bag,
now that its backfired, hence the meeting last night
between SIA/ANZ, if this decision by Clark has been
put off again, then there must be a lot of division in
the govt on which way to jump.
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1 Reply 19, posted (12 years 3 months 3 days 19 hours ago) and read 1177 times:
Wednesday September 5, 10:56 AM
Air NZ expected to change business strategy-NZ govt
WELLINGTON, Sept 5 (Reuters) -
Air New Zealand
is expected to revise substantially its business strategy at a board meeting on Wednesday, New Zealand Finance Minister Michael Cullen said on Wednesday.
Answering questions in parliament, Cullen said that an announcement about Air New Zealand's ownership hinged on when the national carrier was able to be precise about its plans "and what implications those plans have".
Air NZ is seeking government permission for Singapore Airlines to raise its stake in the carrier to 49 percent from a current quarter share.
Cullen said that blame for a delay in making a decision on lifting foreign ownership limits on the airline did does not lie with the government.
"The Air New Zeland board is meeting today. I'm sure it will be meeting to revise that business strategy substantially," Cullen said, referring to a strategy with five-year funding options said by an opposition MP to have been endorsed by Air NZ on June 19.
Tullamarine From Australia, joined Aug 1999, 1236 posts, RR: 0 Reply 20, posted (12 years 3 months 3 days 18 hours ago) and read 1165 times:
I would guess that any revisions to the proposed strategy will revolve around AN Regional and destinations to smaller mainline routes. To turn around AN quicker I'd suggest that they will cull a number of regional routes (probably all routes currently served by KD Metros are for the chop) and may turn a number of the lesser mainline routes (Tasmania as an example and probably some holiday routes such as HTI) over to DJ under a codeshare arrangement.
Suggestions that the Australian gov't may block the transaction are probably a fallacy. The Australian gov't cannot stop SQ obtaining more than 25% of NZ, only stop the related increase of shareholding by SQ in AN. With 2 months to go before an federal election the Australian gov't will not exercise this somewhat feeble power as all they will achieve is, at least, 15000 unemployed people and as Terry McCrann points out in today's Herald-Sun any power the Australian gov't has can be subverted by a rearrangement within NZ.
Aussie_ From Australia, joined Dec 2000, 1766 posts, RR: 5 Reply 22, posted (12 years 3 months 3 days 18 hours ago) and read 1164 times:
If Kendell drop all their Metro routes, there will be a significant backlash in SA (Ceduna, Broken Hill, Whyalla and others to go).
SA is crucial in the next federal election, as well as there being a closely fought state election on the horizon.
For those reasons I doubt such a cull will be allowed to happen. I think you'll see both the federal and state government doing EVERYTHING possible to prevent it.
That being said, business is business, and I wouldn't be surprised to see QF cashing in on this via Impulse B1900Ds, especially as SA regionals is one area where Ansett, via Kendell, has a dominant role.
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1 Reply 24, posted (12 years 3 months 3 days 17 hours ago) and read 1143 times:
Air N.Z. Slides as Investors Fret at Failure of Virgin Purchase
By Gavin Evans
Wellington, Sept. 5 (Bloomberg) -- Air New Zealand Ltd. shares plunged after Virgin Blue rejected its takeover offer, raising concern that the revival of unprofitable Australian unit Ansett Holdings Ltd. will take longer than investors had hoped.
The airline's Class B shares, which anyone can own, fell 6.6 percent to close at 99 NZ cents, while Class A shares, reserved for New Zealanders, fell 3.3 percent to 89 NZ cents. Air New Zealand offered A$250 million ($130 million) for Virgin Blue.
Air New Zealand, 25 percent owned by Singapore Airlines Ltd., wants to raise NZ$1 billion ($431 million) to upgrade Ansett's fleet, needed to compete with Richard Branson's Virgin Blue and Qantas Airways Ltd., Australia's No. 1 carrier.
``It's difficult to envisage when this company can return to profitability,'' leading investors to question whether the carrier will be able to raise the cash, said Simon Botherway, head of equities at Arcus Investment Management Ltd. in Auckland.
In addition, jet fuel prices, which added nearly NZ$286 million to the airline's first-half costs, have gained 16 percent the past six weeks.
Government Delays Again
``The government is not in a position to make final decisions'' on the airline's proposal, Finance Minister Michael Cullen said in a statement after a meeting of senior New Zealand cabinet ministers. ``The situation surrounding Air New Zealand is somewhat fluid.''
Prime Minister Helen Clark said that Monday government ministers would discuss the airline's plan and wanted to have a position that it could announce by Thursday.
That approval has been delayed several times already amid newspaper reports saying the airline also wants the government to underwrite a planned rights offer to the airline's other shareholders.
``I would have thought the government is balking at what they might be required to underwrite in any rights issue,'' Arcus's Botherway said. To do that ``they would want the same sort of assurance as any other investor that this thing is actually going to make money in the foreseeable future. In my view they needed to do a deal with Virgin to ensure that was the case.''
Air New Zealand is expected to report a NZ$200 million fiscal 2001 loss next week, mostly because of losses in Australia, where Ansett's market share has been eroded by the Virgin Blue discount airline. At the same time the weak Australian dollar raised the company's fuel and parts bill.
Botherway doubts the Virgin is that profitable and said that Ansett and Virgin probably need to merge. Still, that won't help Ansett which could be losing as much as NZ$1 million a day, he said.
``They're now in a very, very difficult position. Virgin has a lower cost base and Qantas has a higher market share,'' he said. ``That doesn't reverse just because you buy new aircraft.''
Citing unnamed political sources, the Dominion newspaper said that Air New Zealand and Singapore Airlines were in urgent talks last night to keep their proposal alive.
Air New Zealand spokesman Mark Champion wouldn't comment on the Dominion report. The carrier hasn't disclosed exactly what it has sought from the government, though it has said its plan includes ending the two separate classes of shares.
25 Wirraway: The question here is WILL SIA still pay NZ$1.31 per share when todays price is NZ$0.99. If SIA walk away, all hell will break loose. Wirraway
26 Singapore_Air: All hell? Maybe Anyway, I don't think VB is crucial to this plan, and it can wait so to speak. Ohhh I'm so bored about this now...
27 Tullamarine: From this week's FI. In summary, governments should either be honest and run their airlines directly or let the market decide what is best. The curren
28 Docpepz: I'm sure SIA will eventually buy VB for some ridiculous price, like what they paid for VS.
29 Anzett: Singapore_Air, let me get something clear with you on your comments, how can you claim that Virgin Blue is not a serious threat to Ansett. When you th
30 Go Canada!: Singapore_Air why are you getting bored, you were so happy becuase you were saying 'we had one'-weel i dont helen clark signing that song yet and the
31 Singapore_Air: Anzett: I am not concerned with Virgin Blue. Virgin Blue can go it's own way with it's low fares while QF/AN/Impulse can go on with the "normal" stuff
32 Victor Alpha: Singapore_Air, VB is definately a threat to SIA. SIA's intended market is AN's domestic routes to feed traffic to SIA's Aussie Ports in time to come w
33 Wirraway: Now we start to find out why the delay, I was spot on this afternoon about SIA paying the original offer of NZ$1.31 a share when the current price is