SInGAPORE_AIR
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NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Thu Aug 09, 2001 7:24 am

I am back.

Politics is surely playing here. Anyone in OZ and NZ care to inform us about the political state there? Is there an election? Anyway, this Shipley woman's my cup of tea...and I thought she was against the idea being the "National Party". Oh well...

NZ opposition backs SIA proposal
By Rebecca Lee

Jenny Shipley, New Zealand Prime Minister

SINGAPORE Airlines' (SIA's) bid for a higher stake in Air New Zealand (Air NZ) has won backing from Kiwi opposition party leader Jenny Shipley.

She called for the government to lift the 25 per cent cap on foreign airline investment in Air NZ 'so the airline can decide on its future ownership'.

Her National Party 'strongly supports the Air NZ board's right to decide what is in the best interests of the company', she said in a statement this week.

She said her party believes that an increase in SIA's stake, rather than Qantas', is more likely to retain strong competition in the domestic market and provide more opportunity for international tourist to access New Zealand.

SIA's proposal to raise its stake in Air NZ from 25 per cent to as much as 49 per cent has the backing of Air NZ's board, but needs the government's approval.

Yesterday, Air NZ's board reaffirmed its support for SIA's bid by passing a resolution 'to put to rest any suggestion that there are divisions of opinion over the proposal among the directors and management of the company', Reuters quoted acting chairman Jim Farmer to have said.

But rival Qantas wants to buy SIA's stake in Air NZ and has offered to sell Ansett, Air NZ's wholly-owned Australian domestic carrier, to SIA in return.

Its proposal has the backing of the Australian government, which has asked the Kiwi government to 'fully develop' it.

The two countries have formed a joint officials' working party and appointed lead negotiator Rob Cameron from investment bank Cameron and Co to explore the options.

Yesterday, New Zealand government spokesman Patricia Herbert told The Straits Times the working party is still being set up and members of the party have not been finalised.

But she said that Mr Cameron will deliver his report to a committee of six New Zealand government ministers 'towards the end of this month'.

Meanwhile, the Kiwi opposition party's transport spokesman, Ms Belinda Vernon, criticised Finance Minister Michael Cullen for releasing 'confidential information about Air NZ'.

She said Dr Cullen's comments that the carrier wanted to remove its 'A' and 'B' share structure were 'inappropriate and out of order' as the information was not public.

But Dr Cullen's spokesman yesterday dismissed her comments as 'opposition politics'.
Anyone can fly, only the best Soar.
 
SInGAPORE_AIR
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Thu Aug 09, 2001 7:33 am

The 2nd article is ver very interesting. Do comment on it please. I'd love to hear your thoughts.

Air NZ board affirms Singapore support
09 August 2001

MELBOURNE (Reuters): The board of New Zealand flag carrier Air New Zealand Ltd yesterday reaffirmed its support for a plan for its 25 percent shareholder Singapore Airlines Ltd to lift its stake to 49 percent.
"The resolution was passed to put to rest any suggestion that there are divisions of opinion over the proposal among the directors and management of the company," acting chairman Jim Farmer said in a statement issued by its Melbourne office.

Air NZ has put a proposal to the New Zealand Government to allow SIA to lift its holding from the current regulated limit of 25 percent to 49 percent. This would allow the Singaporean airline to give Air NZ an injection of capital to help fund a fleet renewal worth billions of dollars.

Air NZ owns Ansett Australia, the second largest carrier in Australia after Qantas Airways Ltd, which has proposed its own recapitalisation and ownership plan for Air NZ.

Qantas has proposed buying a 25 percent stake in Air New Zealand and selling struggling Ansett to SIA.

The New Zealand Government, which has said it would be reluctant to raise the ownership cap, has assured Air NZ it would make a decision on the issue by the end of August.

Air New Zealand's resident-only A shares closed steady at $1.10, while its unrestricted B shares added 3c to $1.36 in a just firmer overall market.

----
Don't Cry for Air New Zealand

Keith Rankin, 8 August 2001
To understand what is the preferred future for Air New Zealand, we need to think about the nature of the international airline industry and the nature of the home region from which it operates and within which it flies "domestic" services. To understand what is the probable future for Air New Zealand, we must consider the interaction of unenlightened self-interest and myopia that characterises much of what really happens in the real world.

Air New Zealand (ie Air New Zealand - Ansett) is an Australasian airline, and is a member of a global alliance. It is a good airline with the potential to be much better, and to contribute much to the economic wellbeing of both New Zealand and Australia. Air New Zealand has found its most appropriate niche in global aviation. Its position creates balance and healthy rivalry within Australasia and for travel to and from Australasia. The New Zealand and Australian governments should be doing what they can, short of becoming shareholders, to maintain the present balance.

Unfortunately, both governments have other agendas.

The real problem is that most of us - including the Lab-Al government in New Zealand - do not understand the nature of the Australasian region. The even bigger problem is that Australians see New Zealand as a missing appendage of theirs, much as the Argentines see Las Malvinas (the Falkland Islands). [Indeed ex Aussie PM Paul Keating, at last week's Catching the Knowledge Wage conference, certainly seemed to understand closer relations between New Zealand and Australia as meaning New Zealand attaching itself to Australia.]

For some reason that is not clear to me, Australia seems to be able to exert quite a lot of leverage over our government. (We only have to think about the way in which new New Zealand expatriates now have the status of guest workers in Australia. We failed to negotiate any royalties for the costs of the education of those New Zealanders whose efforts create much revenue for the Australian Treasury.)

New Zealand is not a province of Australia, regardless of what John Howard or Paul Keating or Kim Beazley thinks; or how Helen Clark behaves. New Zealand and Australia are separate (but neighbouring) provinces of something bigger; provinces of some inchoate commonwealth which may be the whole world, or may be something less than the whole world.

We can use Southland as a metaphor for New Zealand and Otago as a metaphor for Australia. (We will ignore the fact that "Australia" is Latin for "Southland"!)

Southland and Otago are both rivals and collaborators. Together they form the Highlanders, much as Australia and New Zealand once formed the Anzacs. Southland, though, is always conscious of its larger neighbour. Southlanders are aware that Aucklanders don't really distinguish between Southland and Otago.

The government of Southland did on one occasion become insolvent, forcing Southland to become, for a few years, a part of Otago. (Provincial governments were abolished in 1876.) New Zealand may yet be forced, under comparable circumstances, to become a bit of Australia, another Tasmania. In the meantime New Zealand, like Australia, is an independent province.

Because of their physical closeness and cultural similarities, it would be natural for a Southland transport company to operate in Otago, and vice versa. Maybe, on account of parochial jealousy, the people of Dunedin would prefer not to be reminded that one of the main companies they buy services from has a head office in Invercargill. So the Southland company might trade under a different name in Otago. Even then the Dunedin establishment might place barriers in the way of the Southland company - eg by creating a phony safety scare during the busiest week of the year - in order to protect the true blue Dunedin company from the competition of its upstart Invercargill- based rival.

On account of situations arising from the non-level playing field, the Southland based (and proud of it) company needs to capitalise by raising equity from outside the region; from the "north". What should the city fathers of Invercargill do?

We would expect that the leading interests of Dunedin would try to persuade their counterparts in Invercargill that outside finance would mean outside control, and that the southern region as a whole would have its economic sovereignty compromised. The Dunedin-based company might even offer to buy into the Southland company, to help save its rival from the dastardly northerners.

We, the bemused consumers of the media, would of course understand that these Dunedin interests were not really speaking on behalf of the people of Southland. We would hope that the Southland powers-that-be would be able to see that the Otago interests were speaking with forked tongues; that they were really most interested in eliminating their successful though undercapitalised rival.

But no. The Southland big-wigs prove too susceptible to Dunedin flattery, and to a bit of whining and wining-and-dining. So the Southland company gets kneecapped, and is forced to reject its preferred northern partner and to accept the overtures of its Dunedin rival, and to therefore become nothing more than the Southland appendage of the well-connected Dunedin firm.

The corollary is that the Southland firm's Otago operations are sold in full to the northern interest that might have been able to recapitalise the Southland firm. After a few years this northern company (and now the only serious rival in Otago of the long-established Dunedin firm) agrees to extend its operations to Southland.

Petty parochial politics will have destroyed an excellent southern company and created a much greater northern interest in the southern transport industry than would have been the case if the Southland company had just been allowed to run a good business that was good for the south.

In other words, if the New Zealand government does what I think it's going to do - in five years time there will be two airlines flying the trunk routes within New Zealand. One will be the Australian controlled Qantas New Zealand (ie the remnants of Air New Zealand) and the other will be a new Ansett New Zealand, this time an airline 100% owned by the people of Singapore.

© 2001 Keith Rankin

keithr@pl.net

http://pl.net/~keithr/
-----
The last sentence is weird...
Anyone can fly, only the best Soar.
 
jet_guy
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Thu Aug 09, 2001 8:06 am

What a weird article Singapore_Air!

He seems to be all over the show!
Anyway I think he means a Qantas NZ, the remains of the former Qantas NZ if that makes any sense

Ansett New Zealand 100% owned by the people of Singapore(?) thats just confusing, i might email him, and see what he is on (about)

He lost me when he started talking about Otago, and Southland..........

The election is not until next year, but the government is trying to make everyone happy, which cannot be done. They delay all their decisions. It like a school kid making excuses for not doing the homework "the dog ate it miss" Also they want to protect Air New Zealand.
Big businesses do not support the current government so maybe they want to make a good decision to win them back, but i dont think that will happen!

Sam  Big thumbs up
 
jet_guy
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Thu Aug 09, 2001 8:14 am

I get it now. He thinks the goverment will allow QF to by into NZ, hence the Qantas New Zealand, and then SQ will get AN, and then will have to operate domestic routes in NZ>Ansett New Zealand
 
dalecary
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Thu Aug 09, 2001 11:46 am

I don't know who Keith Rankin is- I assume he is a kiwi political commentator,however what he says is crystal clear to me. He believes the NZ and Aust. Gov'ts will support the QF scenario,so we will end up with QF/NZ v SQ/AN. He sees QF and SQ dominating these unions.
There will be a federal election in Australia before year's end-most likely Nov/Dec, so it is very political on our side of the Tasman. A robust and successful QF and AN is the best outcome for the Australian Gov't and they believe(in their debatable wisdom) that this is best achieved by supporting the QF plan.
One thing is for sure- if the QF plan succeeeds,SQ will have to be offered some "privileges" to be persuaded to sell their AirNZ stake to QF and take on full control of a debt-ridden AN.

Dale.
 
Mark_D.
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Thu Aug 09, 2001 12:09 pm


Yes, poor Australia AND New Zealand, seems to me, if the QF plan wins the day. Seems to me it'll be mighty anti-competitive, anti-consumer. Interesting that SQ's in the role of defender of the Australasian air-travel consumer's rights a bit, least that's what it looks like anyway.

Too bad it didn't pan out like in Canada, where okay the flag carrier ended up devouring the rival --which had earlier devoured still smaller rivals-- but now which is really being given a run for its money in the domestic market by a couple of popular and apparently really well-run discount carriers.


Ansett needs to turn into a something like a C3 or at least a WestJet, and seems to me it ain't gonna do it if QF gets AN.
 
tullamarine
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Thu Aug 09, 2001 12:12 pm

I think Keith Rankin must be dreaming if he thinks SQ will ever operate Ansett NZ or any other domestic airline in NZ in competition to Air NZ. If the NZ Gov't go with QF, they will probably have to accept a virtual monopoly in NZ domestic and trans-Tasman aviation.

Dale, I think you're probably right in that the NZ Gov't probably prefer the QF proposal but I think they're probably recognising that short of nationalising Air NZ (not a particularly good option if you ever want to get foreign investment in the country again) they cannot force SQ to divest their NZ shares.

Now depending on how desperate QF is, you could see SQ get an offer too good to refuse but since they hold the whip hand, SQ would probably want some huge concessions such as "NZD4 per NZ share and we'll take AN off your hands for nothing." This would be a great deal for SQ but QF would be looking at having to stump up over $1.5bn to recapitalise NZ so it's hard to see how it could possibly pass any investment hurdle rate that QF would have for its investments.

This leads us to a pragmatic solution which all politicians look for. Desperate for an out but also having been seen as having "a win" I would suspect that the NZ Gov't will recognise that they have to deal with SQ and will say to them they can't have 49% of NZ but 35-40% may be able to be accommodated. Realistically this isn't a great solution for anyone in that NZ probably don't get all the cash they need, SQ don't get the control they desire and QF get nothing but for the government it means they can be seen as "keeping a NZ company in NZ hands" even though this is already a fiction and they've put off the really hard decision to another day and as we know that is what every politician desires to do.

As Sir Humphrey said, "There are many many things which must be done but nothing must be done for the first time."
717,721/2,732/3/4/5/7/8/9,742/3/4,752/3,762/3,772,W,310,320/1,332/3,388,DC9,DC10,F28,F100,142,143,E90,CR2,D82/3/4,SF3,AT
 
jetkid
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Thu Aug 09, 2001 1:15 pm

I'd agree, a 35-40% stake for SQ is more likely, how on earth can they expect SQ to sell their NZ shares without QF having to pay through the nose is beyond me.
 
Mark_D.
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Thu Aug 09, 2001 1:26 pm

I hope something like that happens, seems to me it'd be a pretty dreary scene if QF gobbled basically most of the competition up, and in both countries. No matter how good an airline they may be from a service standpoint.

But if that's what does happen SQ of course is gonna have to get enough of a chunk to make saving Ansett worth its while, so major league consulting needed with them before the Beehive guys would decide on a percentage number.
 
QantasAirways
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Thu Aug 09, 2001 2:37 pm

This situation is turning out quite good for Qantas.
However, Air New Zealand does not think the Qantas deal is very good.
Oh well, Whatever happens (and whenever!) I hope it turns out well for QF!

Regards
QantasAirways
Spirit of Australia
 
SInGAPORE_AIR
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Thu Aug 09, 2001 4:11 pm

Thanks for your comments. It is now clear. Otago and Southland! I live in the UK, no wonder I couldn't understsand what he was on about.

Anyway the article, although the last sentence is wrong, is very interesting and good.

I'll admit it is unlikely that SIA will get 49%. I'm going to be a bit more optimistic and put a limit on 45%, considering the NZ Govt's comments so far. However, I doubt that SIA are going to exit ANZ. Cheong said something and Oh yes!. Hold on while I hopefully try and find the quote...
Anyone can fly, only the best Soar.
 
SInGAPORE_AIR
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Thu Aug 09, 2001 4:20 pm

Voila!

Qantas steps up bid for rival
Sunday Business; Aug 5, 2001
BY BARBARA DRURY IN SYDNEY

blah blah blah...

"Under the Qantas plan, Singapore Airlines would then buy Ansett, Australia's second-largest airline, from Air NZ. Anderson said he welcomed direct investment by Singapore in Ansett.

For its part, Singapore is still refusing to sell its Air NZ stake. Its chief executive, Dr Cheong Choong Kong said last week: "Why would we, after selling our stake in Air New Zealand, pour hundreds of millions of dollars into an emasculated Ansett that would be severely weakened by its separation from Air New Zealand?" Singapore Airlines, with the support of the Air NZ board, has been lobbying the New Zealand government to allow it to raise its stake in Air NZ to 49%. This would allow the loss-making Air NZ to fund a A$4bn (GBP1.5bn) upgrade of the ageing Ansett fleet."
-----

There you go. By his tone I gather he was irritated. Oh dear  Sad An irritated Cheong! Anyway, I think that quite dispels any thoughts of SIA selling 25% of ANZ...
Anyone can fly, only the best Soar.
 
Oz777
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Fri Aug 10, 2001 6:12 am

Which is what I have been saying for nearly three months!!

Word has it that the NZ/Aust Govt working party has asked the airlines for a split share proposal - ie a max of 33%-35% of ANZ and a similar amount for AN.

Seems this goes some way to placating a perception of control over ANZ who control AN under the SQ proposal.

I think the ANZ board are not impressed with this scenario - it makes it necessary to raise a rights issue for both airlines to gain the capital (something which ANZ does not have to tip into AN anyway.)
All I can say is that the lawyers and financial consultants are doing very nocely out of this thanks very much!!

Oz777
 
go canada!
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Fri Aug 10, 2001 6:17 am

Advantage Qantas in this long soap opear.

i think the threats by QANTAS to get BA to increase its stake to 49% as sent the Austrialian Government into action.Nothing more polictically worse then having QANTAS merging with the poms as we are known and having the singapore government own ansett and air new zealand.

The New Zealand governemtn seems to have figured that sia increasing its stake wont be enough to finance fleet renewal unless SIA increased influence and that selling ansett to SIA without securing longterm finance for Air New Zealand will leave it an second rate carrier.

Qantas are less likely to influence ANZ in the way that sia would seek because they are desperate to conclude this deal.they can back the renewal program and have backing from BA who will love to see air new zealand in one world.
Offering anz directors places on qantas board is a swerd idea, in fact the more this goes on you see QANTAS having a plan and SIA being a bit flustered.

i dont think SIA really appericated what they were lettting themselves in for, i dont think they thought helen clark could be so slow.

competition is worse with a sia/anz/ansett as sia also have an interest in virgin blue and talk of a tie up would really grate QANTAS, left to sell a bigger stake to BA.

Politics will win the day and expect a SIA/Ansett and and Qantas/ANZ, which is the best for ansett, the best for air new zealand, the best for competition and the best for the australian and new zealand passegeners would should be placed first.
It is amazing what can be accomplised when nobody takes the credit
 
jetkid
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Fri Aug 10, 2001 7:19 am

Go Canada! how on earth can you say a combined QF/NZ is good for New Zealand consumers, you must be joking, I think if you asked people who live in New Zealand if they thought that was a good idea 8/10 would say no way!
 
dalecary
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Fri Aug 10, 2001 3:30 pm

A bit off topic,

I read some comments by Gary Toomey at a business seminar in BNE yesterday. He hopes to have AN International flying to LHR within 2 years via BKK. I imagine this is to appease SQ and seems to me that it could be a signal that TG will leave STAR in the near future. How could TG tolerate this situation as a member of STAR?
He also stated that AN International aims to be flying to the US West Coast by late 2002(was going to be this year). If this is to be the case and NZ/AN/SQ remains intact,I see big problems for QF on their Pacific routes. Basically, there will be 4 STAR airlines(NZ,AN,UA,AC) flying Trans-Pacific against QF. This seems remarkably unbalanced to me and a situation that QF would not envy,as I think it is their highest yielding market and they wouldn't want to lose market share.
Just some observations.... all comments welcome.

Dale.
 
SInGAPORE_AIR
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Fri Aug 10, 2001 4:49 pm

Then why don't American fly transpacific? and whatever other airline that lives in the Americas and is in the oneworld group. Not unbalanced, just slightly tipped until oneworld realises something.

Thai? Oh dear. What about HKG?! I thought they were going through HKG! Hmm. Interesting. I'd rather a HKG route.

Anyway, Australia has upsetted Gary Toomey, and he has come back bigger, badder and is about to punch them.

WRAP: Air NZ Threatens To Cut Ops If SIA Bid Blocked

By Iain McDonald
Of DOW JONES NEWSWIRES

CANBERRA (Dow Jones)--Air New Zealand Ltd. (A.AIZ) Friday threatened to cut regional services in Australia if New Zealand and Australian governments blocked Singapore Airlines (Singapore: SIAL.SI - news) Ltd.'s (P.SAL) bid to lift its stake in New Zealand's national carrier.

Air New Zealand badly needs a capital injection, particularly for its Ansett Australia unit, but is having difficulty convincing governments on either side of the Tasman to approve Singapore Airline's lifeline.

"The first area we would start looking at is scaling back our regional operations in Australia as a direct consequence of what the Australian government has said," Toomey told reporters.

The threat is a direct challenge to Australian Deputy Prime Minister John Anderson, who earlier this month backed Qantas Airways Ltd.'s (A.QAN) rival proposal to gain a stake in Air New Zealand while Air New Zealand would sell Ansett to Singapore Airlines.

Anderson leads junior government coalition partner the National Party, which already faces a backlash at a general election later this year from its mostly rural and regional support base over declining services.

Air New Zealand's board this week unanimously supported Singapore Airlines as its preferred partner.

In the first instance, the New Zealand government has to approve Singapore Airline's bid to lift its stake above 25% as such a move is against New Zealand's foreign investment rules.

But the Australian government will also have to approve the deal as Air New Zealand owns Ansett, Australia's second-largest domestic airline.

"The best competitive arrangements, the best balance, would be a partnership between Qantas and Air New Zealand on the one hand and Singapore (Airlines) and Ansett on the other," Anderson said last week.

Air New Zealand Frustrated With Govt Block

In a sign of Air New Zealand's frustration, Toomey said that while the Qantas proposal is one that could be looked at, "it isn't available to us at the moment."

Singapore Airlines reiterated at Air New Zealand's board meeting that it isn't prepared to sell its stake in Air New Zealand to Qantas or to buy Ansett, he said. (I thought the board meeting is late August. Oh well)

"So at this stage, it isn't on the table for us to look at, despite what the Australian government may or may not have said," Toomey added.

Asked how Air New Zealand would respond if the New Zealand government blocks Singapore Airlines' bid, Toomey said the New Zealand carrier can't afford to maintain the status quo.

"We can't find ourselves in a position where Air New Zealand can't follow a course of action in that we have a pressing need to invest heavily into Ansett," he said.

Anderson's comments last week "haven't been helpful," Toomey said.

But a spokesman for John Anderson told Dow Jones Newswires that Air New Zealand's quarrel isn't with Australia but with the New Zealand government which is considering the issue. (Um...)

"The government is pursuing Australia's national interest, which means a strong Ansett and a strong Qantas at the end of this process," he added.

Copyright © 2001 Dow Jones & Company Inc. All rights reserved.
Anyone can fly, only the best Soar.
 
SInGAPORE_AIR
Posts: 11619
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Fri Aug 10, 2001 6:24 pm

We're getting hard figures now. I am pleased.

SIA faces NZ$470mln bill for 49% of Air NZ-analyst
By Lincoln Feast



WELLINGTON, Aug 10 (Reuters) - Singapore Airlines (Singapore: SIAL.SI - news) Ltd

would face a bill of about NZ$470 million ($200 million) to increase its stake in Air New Zealand to 49 percent, an airline analyst said on Friday.

However, with a government decision on the proposal due at the end of the month, industry analysts believe the New Zealand government is unlikely to allow Singapore Air (SIA) to move to its desired level.

The SIA/Air NZ proposal includes plans for SIA to increase its current 25 percent holding to 49 percent through a placement of shares at NZ$1.31, a breakdown of the current A and B share structure and a removal of the 49 percent cap on foreign shareholder ownership.

Credit Suisse First Boston analyst Murray Brown estimated SIA would have to be issued about 360 million shares worth about NZ$470 million to increase its stake to 49 percent.

However, the New Zealand government, which holds a golden share in Air NZ to protect international landing rights, has expressed its reluctance to lift shareholding restrictions.

"NZ ministers have repeatedly indicated that it will be difficult for the government to decide in favour of SIA increasing its stake above its current 25 percent level, particularly to 49 percent," Brown said in a research note.

The proposal, which is also subject to shareholder approval, is preferred by the Air NZ board over a rival proposal from Qantas Airways Ltd to take a stake in the NZ carrier.


STATUS QUO THREATENS VIABILITY

Brown warned Air NZ would struggle if SIA was unable to increase its stake, and could face selling Ansett Australia or a range of other assets including its engineering operations, aircraft and terminals.

"The status quo... is arguably the worst outcome for (Air NZ) shareholders and potentially threatens the viability of the company," he said.

Timothy Ross, aviation analyst at UBS Warburg in Auckland, said SIA could easily fund its Air NZ proposal.

"They've got S$450 million (US$255 million) in net cash on their balance sheet, so it's really just a matter of writing a cheque out," he said.

But Ross did not expect SIA would be allowed to take 49 percent, although it could be allowed to get another 10 percent.

NZ government policy limits single airline ownership in Air NZ to 25 percent and total airline interests to 35 percent.

Either way, analysts said SIA would have to underwrite a rights issue -- vital to fund a fleet renewal and help absorb losses from Air NZ's troubled Ansett Australia subsidiary -- likely to be at a significant discount to current prices.

Air NZ's unrestricted B shares closed on Friday down three cents at NZ$1.32 while the airline's New Zealand resident-only A shares closed flat at NZ$1.13.

Brierley Investments , now Singapore-based, owns 30 percent of Air NZ in A shares through a NZ-resident structure established when it moved from NZ last year.

Air NZ would not comment on the planned capital raising.

"We wouldn't even be starting to talk numbers until we get to the stage where we know what the outcome of the government's decision over the proposal is. Until that happens, everything is very hypothetical," Air NZ spokesman David Beatson said.

But Air NZ chief executive Gary Toomey, during a visit to Australia, hinted to reporters that SIA's total bill to help recapitalise Air NZ might top A$1 billion.

And he warned Air NZ would look at cutting Ansett's regional services if SIA was unable to increase its stake.

Anyone can fly, only the best Soar.
 
QantasAirways
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Fri Aug 10, 2001 7:14 pm

I really support Qantas in taking Air New Zealand out... it would be great, and furthermore, I would love to see AN with SQ!

Regards
QantasAirways
The spirit of Australia
Spirit of Australia
 
'Longreach'
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Fri Aug 10, 2001 8:25 pm


Just a comment about Gary Toomey threatening the Government of Australia by scaling back Ansett's network:

New Zealand and Australia have so many close ties its not funny, such as the kiwis used to be able to claim our dole, which has been scrapped, and also their reliance on our air force.

I strongly doubt the NZ government would approve of his threats to their closest neighbour, as Air New Zealand is a national carrier (or claims to be), and doing such actions would stuff up the relationship.
 
go canada!
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Fri Aug 10, 2001 8:38 pm

An anz/ansett/SIA would lead to a giant in the region.

Qantas/ANZ and ansett/SIA will lead to healthy competiton for all in austrialia and new zealand.

Dalecary's comments are very interesting and are likely to occur.4 carriers, all linked flying on Qantas's main routes is a situation which QANTAS would not tolerate.

The austrialian government isnt going to accept this and the nz government has now realised that qantas owing 25% of anz is better than SIA owing 49%.

Both governments are moving to a closer postition as time wears on.

If the anz/ansett/sia deal went then it is a threat to competition and would lead to qantas selling a bigger stake to british airways, something which BA would love to do but doesnt dare at the moment.

because the nz government has de facto final say on anz it isnt going to accept it being swallowed by no-one.
because the austrialian government has vested interests it wont let the deal pass unless qantas gets something.

Also the figures stated about how much a stake would cost sia wont be enough to carry out wholesale fleet renewal unless sia gets a bigger say in anz, something which the nz government would never let happen.

Jetkid-whats better for nz consumers, to be part of an anti-competitive global giant with little else choice and to have an national airline de facto controlled by the country of singapore or an air new zealand backed by qantas but remaining more independent than it would under sia?

anz dont want to do a new share issue because there shares arent exactly at the top of investors lists.

the talk of ansett cut back is likely to occur any way because the figures given by sia increased stake wont be enough for fleet renewal and sia would only give further funds if it had further control, something which wont happen.

anz board can try as it might but it wont convince two governments, both near elections that an giant SIA would be good for new zealand and austrailia.

ps its nice to see everyone accepting that anz/ansett cant survive on their own, something which i was falmed for saying 4 months back.
It is amazing what can be accomplised when nobody takes the credit
 
Guest

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Fri Aug 10, 2001 8:49 pm

Geeez. Toomey must be getting desperate now.

Ansett should be trying to regain it's market share not give it away. This will also give QF the opportunity to come in and be the knight in shining armour and save the bush while ansett "deserts" them. I can't see reigional Australia liking the idea of Ansett using them as leverage over the Govt. for a New Zealand Airline (Yes i know QF an AN arree involved as well but do you really think that the press are going to report that bit, just look at the Easter holidays,)

And i dont think Helen Clarke and her counter parts across the tasman will like being held to ransom one bit. This could just turn around and slap them in the face.

I hope he is Bluffing

~J~
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Fri Aug 10, 2001 10:19 pm

He is not bluffing BruneiAir, and maybe he is desperate. Maybe he does want to go to the ATM and "withdraw a billion bucks and go".

I think it is very sad though that Politics is being played here instead of harcore big business. There is more talk of Singapore Government controlled airlines and national symbolisym and political bureaucracy than the facts about the SIA deal and the advantages it brings to the ANZAN Group.

Cheong Choong Kong is not impressed. I would know. He delivered a speech in NY once talking about how Governments around the world are not open for foreign carriers to buy into them. He is not a happy bunny. Neither am I. If this drags on after August, I will not be happy and will be writing a letter to the NZ Govt, even though it will probably only reach the secretary of Helen Clark,.

Anyone can fly, only the best Soar.
 
go canada!
Posts: 2886
Joined: Wed Jun 06, 2001 1:33 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 1:14 am

Singapore air its a shame that your favorite airline isnt going to get past the governments of new zealand and austrialia.

overall the advantages for the consumers of south pacific is having qantas/anz and sia/ansett.

Qantas have done very well, coming back from the dead over this deal, sIA double-crossed them, seeming to support the joint plan then back tracking so Qantas have threaterned the aus government and no matter what toomey says the threat to competition in the area and the chance of a ba-owned qantas and a smaller anz with sia dominance has done it in.

the people of austrialia arent exactly queing to fly with ansett after the easter chaos and with qantas/impluse and virgin blue i think the austrialian government knows tomey is bluffing because cutting back ansett will make it worse, it needs revenue, cutting off austrialia will simply play into qantas hands.

Toomney and sia must realise that they wont beat the force that has appeared.
It is amazing what can be accomplised when nobody takes the credit
 
Mark_D.
Posts: 1360
Joined: Wed Aug 01, 2001 9:55 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 2:02 am


Go Canada! (what's that name have to do with anything  Big grin) I'd be more inclined to believe your clarion-calls to action here, if they didn't come off as so strident. It's like maybe you got jailed for throwing gum on Singapore sidewalk sometime, and never got over it or something.


"QuantasAirways" at least is more even-keeled, his tone is just cheerleading pure 'n simple, even though there's apparently nothing more to it than that.

Anyway your maybe "fear of things Singaporean" aside, it does seem to me like the Australian and New Zealand air traveling public --and everybody indirectly affected by all the business spinoffs-- would be adversely affected if it were to become a Quantas uber alles for the whole continent. Might not even be too good for Quantas themselves either, heck look at what's happening to Air Canada these days, case in point.


So maybe a lot of folks, in both Australia and New Zealand, won't agree with your stumping, on this.
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 2:45 am

hehe Mark_D. Watch out for some hard core backlashes from your post! Naughty boy!

Anyway, Go Air Canada, you may think that the region prefers a QF|NZ, SQ|AN, however I tell you solemnly, how the hell will that happen. Key points my dear:

1) CHeong said SIA invested in ANZ for the long term and without AN conjoined onto ANZ, the two would really be invaluable. I would say dead as ditchwater. They are complimentary and suit eachother fine.

2) ANZ don't want to get into bed with QF but Singapore Airlines. Now how does that work out?

3) SQ has rejected an invitation and will reject another invitation (QF site latest press release as of today), to do it's little deal.

4) Do you forsee SIA selling it's 25% stake to it's rival? I don't.

5) Politics is playing here and it has no right to. This is business. Competition, that will be considered. But not politics.

6) I am tired.

Anyone can fly, only the best Soar.
 
jet_guy
Posts: 221
Joined: Wed Aug 23, 2000 12:50 pm

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 7:17 am

So true Singapore_Air,
All the people who support QF/NZ have failed to mention how QF plan to buy the 25% off SQ who are not willing to sell it!!!!!, and then sell AN to SQ who are not willing to buy it!!!!!.

Its all well and fine saying that QF is better for NZ, but I fail to see it happening. If SQ does lose to QF, it will give them even more reasons NOT to sell the stake in NZ!

NZ have said they want SQ, if they go with QF they might even poison the relationship, I dont think they will settle for second best.

QF had a stake in NZ in the early 90's, why did they get out then? and now they are so keen to get back in bed with NZ!!

Sam
 
'Longreach'
Posts: 457
Joined: Fri Jul 27, 2001 11:36 pm

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 7:52 am


If this is the case about SIA not selling, well then things will just return to how they are now. SIA having 25% of Anz which owns Ansett.

The NZ Government has time and time again not approved the raising of the ownership cap to what SIA see is good enough to hand over some cash. SO if they won't sell the only loser is going to be a bankrupt ANZ due to a failing Ansett, then the relationship between the NZ GOVT and the Singaporean GOVT will certainly be poisoned.

Singapore_Air you have mentioned a few times and have the view that the Political Governments should not be invovled in the business, have a look at who owns SIA. Oh yeah that's right you choose to ignore that fact. Sorry.
 
Guest

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 10:20 am

Have you guys noticed that we haven't heard dicky branson whinging over a combined SQ/AN/ANZ ?

& Before someone says that it wont affect Virgin Blue, it will because it will make Ansett Very strog
 
Oz777
Posts: 516
Joined: Sun Jun 25, 2000 9:48 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 11:09 am

O)nce again we need to clear up a few "untruths", and regrettably there are several people in this forum, "strident" in their vernacular, but hardly relevant.

In Gary Toomey's address in BNE, where he announced the plans to fly to the USA, he also mentioned that the ANZ branded aircraft would cease to fly the route, so effectively you will still have TWO star operators (UA and AN [with a NZ codeshare]) flying up to four departures per day, to ONE OneWorld operator (QF flying at the moment three departures). If the QF A380s goe on the route, then the capacity will be almost equal. American and Continental have route authorities to fly to NZ/AUS, but either do not have the equipment or know that the only way to get share is to discount which makes it unprofitable. Any way AA is happy with the QF "feed" they are getting.

Go Air canada - sorry SQ does NOT have an interest in Virgin Blue.

Lets examine the competition matrix if, and I say if the QF/NZ, SQ/AN scenario materialised.

NZ and QF both flying the Tasman - a cartel and revenue sharing on the route (exactly as QF and BA do on the Kangaroo), and the net effect is - no competition.

AN would then be "forced" to fly trans-tasman under the competition edicts of the ACCC and NZCC. I doubt that the yield is there for another operator to try and fully service the routes. Cabotage already exists between SYD and AKL (ARG, TG, POL amongst others) but only at the expense of deep discounting ($389 return) which is hardly profitable. I do not see a SQ controlled AN readily wanting to pick that up.

Domestically in NZ exactly the same scenario. Ansett NZ barely broke even, and we all know about QF(NZ) (sorry South Pacific). Hardly a real invitation to compete is it.

Actually Gary Toomey's "threat" about regional Australian operations was effectively a "pull your head in" to Anderson who conveniently forgot that Qantas is no longer owned by the Australian Government. Toomey is about saying (and the NZ Govt would have loved this)....... that if the increased ownership cap is not approved, then to save Air New Zealand, the loss making operatiopns of Ansett would be cut. A wake up call for Anderson, who represents a regional seat in Australia - and whose constituents would be affected by such a rationalisation and loss of route competition.

My hat's of to Gary - a very smart retort.

And what is the real implication. Already BOTH QF and ANZ have 49% foreign ownership provisions in their shareholding (QF has breached this on several occasions and has been forced to sell the shares). All we are REALLY talking about is allowing those foreign shares to be owned by ONE party.

As to control, well SQ has stated that they will not seek proportional representation on the ANZ board - ie the number of SQ directors will be substantially less than a 49% equity allows.

Very different to QF and as it NOW operates. BA has a 25% equity in QF, and under the terms of the original sale, is proprortionally represented BUT has the right of VETO over the CEO, CFO, Chairperson and one independant appointee (under the conflict of interest agreement). With the three BA directors, none of whom are in any of the above positions, it gives BA effective control of 7 of the 13 board members. Yep majority rule. Each of the Board members MAY be Australian, but they are BA controlled.

So I am somewhat bemused by Geoff Dixon's complaint of regional influence. Under the new QF proposal to buy into ANZ, he knows there would be no real competition. I think he is frightened by the spectre of a real, consolidated and cashed up operator, each with a renowned service ethic, going head to head with them.

And we have forgotten, that SQ have stated they will NOT sell their ANZ shares to QF. You have to ask why would you sell your share in a profitable airline (and ANZ is profitable on a stand alone basis) and take on an unprofitable one, which is what AN is.

To those of you who promote the QF plan, if it was your money, and your business would you do that??

Oz777
 
jet_guy
Posts: 221
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 11:45 am

Never a wiser word said Oz777!

 Big thumbs up
 
aussie_
Posts: 1600
Joined: Mon Dec 11, 2000 10:39 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 12:08 pm

I also wholeheartedly agree OZ777
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 4:13 pm

Hera hear OZ777 and Kudos!

Longreach: OK SIA may be owned by the S'pore Government, however they don't control them or anything. It's business and management run. I doubt the Govt. influenced the airline's decision in buying an A380, not the 747X as S'pore has slightly nicer ties with the US! You must have read Geoff Dixon's word and believed them whole heartedly.

ANyway! I bring tidings of joy and good news to all SIA and supporters of the SIA deal!
--------
SIA reported to gain support for Air NZ stake rise
WELLINGTON (Reuters) - New Zealand Prime Minister Helen Clark is leaning towards backing Singapore Airlines (Singapore: SIAL.SI - news) Ltd's (SIA) bid to increase its stake in national carrier Air New Zealand Ltd, Wellington's Dominion newspaper reported on Saturday.



The New Zealand government is due to rule later this month on a proposal for SIA to raise it stake in Air NZ to 49 percent from a current quarter stake through a cash injection to help fund a large fleet replacement bill faced by the NZ carrier.

Government ministers have repeatedly said it would be very difficult to approve the Air NZ/SIA proposal, with SIA's 25 percent holding at the current maximum allowed for a foreign carrier in Air NZ.

The Dominion said it understood Clark was shifting her weight behind the deal in the centre-left coalition government cabinet, which it said was split over whether to approve the deal.

"Sources close to the deal say Finance Minister Michael Cullen has been out-ranked after appearing to support a rival proposal by Qantas," the Dominion reported.

Qantas Airways wants to buy SIA's 25 percent stake and on-sell Air NZ's loss-making Australian unit, Ansett, to SIA, but SIA has ruled out exiting Air NZ and Air NZ is opposed to selling Ansett.

Analysts estimate SIA would face a bill of around NZ$470 million ($200 million) to raise its stake to 49 percent, but have also expressed doubt the government will allow the Singapore carrier to get all the way to 49 percent.

The NZ government has a role through a "golden share" it retained in the airline when it was privatised in 1988 -- giving it control over a range of shareholder issues.

Competition issues, NZ tourism promotion and the need to preserve Air NZ's national carrier status for international landing rights are the key issues identified by the government in considering the Air NZ/SIA proposal.

If it approves the deal, SIA would increase its holding through a placement of shares at NZ$1.31/share, a breakdown of Air NZ's current A and B share structure and a removal of the 49 percent cap on foreign shareholder ownership.

The A and B share structure -- under which 51 percent of shares are reserved as A shares for New Zealand residents -- is designed to protect the airline's status as NZ national carrier.

Air NZ's unrestricted B shares closed Friday down three cents at NZ$1.32, while the A shares closed flat at NZ$1.13.
------
And if this isn't true, I will be writing a letter to the Wellington Dominion. However, I'm being very optimistic, it seems true. The thing that does it for me is Michael Cullen being outranked because we all know that he is for the QF deal. Let's see...
Anyone can fly, only the best Soar.
 
QantasAirways
Posts: 1242
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RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 4:58 pm

Hi All,
Mark_D,
Its spelled "QANTAS"
no U.

Regards
QantasAirways
Spirit of Australia
 
v jet
Posts: 757
Joined: Tue May 18, 1999 9:04 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 5:54 pm

In the interests of accuracys sake, QF does not have 3 daily SYDLAX flts.
Most days but NOT daily.
 
docpepz
Posts: 1706
Joined: Thu May 24, 2001 8:20 pm

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 6:22 pm

Airlines and Telecoms are VERY VERY political entities. They form the basis of infrastructure of any country. Which is why we can't avoid politics when dealing with these 2 industries.

If Qantas were to buy Singapore Airlines and Telstra buy up Singtel, I'm sure LKY will flip. Which is why I'm not surprised why the Australians and New Zealanders are skeptical about Singapore's Govt-linked companies taking over their airlines/telcos. Though I personally feel the Singapore govt is not going to interfere in the running of Ansett or tap Australians' phones (I doubt they even do that in Singapore even though we always joke that they do. But then again, the FBI and CIA tap phones........)

The ways Govt-linked companies (GLCs) in Singapore operate are such that the govt doesn't interfere in their day-to-day runnings, but it doesn't mean they don't interfere at all. They are not govt-subsidised, but rather, have to run efficiently as any profit-making company. Money flows from GLCs to the govt, not the other way round, as in countries like India.

And why Australia? Well, basically China has shut us off, India has shut us off and the rest of South East Asia basically finds us (Singapore) a bunch of arrogant assholes trying to teach them how to run their countries. All this has hindered much of our plans to expand overseas. Basically, we just have Australia left, so it's no conspiracy or anything.

I'm sure this will force Singapore's GLCs to re-invent themselves and, increasingly, rid themselves of govt influence, though this will be very difficult, since everything that goes on in this country and everything our economy hinges on has been carefully engineered by the govt. The continued govt-link, no matter how small, will definitely hinder Singapore companies' plans to expand overseas. Because people are not going to view SIA as an airline per se, but rather, as the SINGAPORE GOVERNMENT-CONTROLLED SIA, or the SINGAPORE GOVERNMENT-CONTROLLED Singtel, Port of Singapore Authority, Neptune Orient Lines, DBS Bank, and practically every major company incorporated in Singapore.

As it is, a few months back, the S'pore govt gave up its veto powers in Singtel. I'm not sure if they exercise similar rights in SIA. This is a small step foward. The proposed aquisition of Optus and ANZ/AN by Singtel and SIA respectively will definitely have lots of lessons from which Singapore's GLCs can learn from and will force them to rethink on how they want to be run. After all, the only way for Singapore companies to survive is to expand overseas, since we have a small population base and are surrounded by impoverished neighbours in turmoil.
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 6:29 pm

I didn't know you were from Singapore!

Anyway, I think that sad case is that the Aus Govt. and Geoff Dixon are lying through their teeth when they say Singapore.Inc / Temasek Holdings / aka. Singapore Govt. control SIA. They are lying and they know it. However this tactic is too put the sheer fear into the air travel market in the region and into the NZ Govt's face. I pity their comments.

Anyway, i'm getting really excited because of that report, even though I know that if it isn't true, i will be very very depressed and angry! Oh well. hehehe. Wow!

Anyway, we'll have to wait yet another day. Cheers!
Anyone can fly, only the best Soar.
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 7:12 pm

Docpepz: Do you have MSN Instnat Messenger?
Anyone can fly, only the best Soar.
 
Oz777
Posts: 516
Joined: Sun Jun 25, 2000 9:48 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 7:17 pm

Well I can tell you that the NZ Govt is paying for and getting some very good strategic advice!!!

I want to throw in another question. Given Gary Toomey's comments in Brisbane about the proposed date of the LAX start-up, this now gives a clearer picture about Ansett International's choice of wide bodied aircraft. THink about it. What will be available in 14 months time, six of them, capable of SYD-LAX, SYD-HKG, SYD-BKK and ultimately BKK-LHR.

Oz777
 
Guest

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sat Aug 11, 2001 10:22 pm

What Oz777?
 
wirraway
Posts: 1294
Joined: Sun Mar 25, 2001 4:32 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sun Aug 12, 2001 12:32 am

Oz777

What you have left out of your scenario regarding
your trans Tasman statement is the NZ govt is also
expected at the end of this month to hand down
their decision on Virgin Blue flying the Tasman and
operating domestic in NZ, if approved (very likley)
VB have to commence within 90 days.

As to all the huff & puff going on in Wellington, I think
SIA will get what they want or very close to it (40-45%)
because if they don't Ansett would be for the high jump,
won't happen.

Wirraway
 
Mark_D.
Posts: 1360
Joined: Wed Aug 01, 2001 9:55 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sun Aug 12, 2001 3:54 pm

QantasAirways, thanks for the correction (obviously outta practice writin' it, not to mention maybe even now still affected by all those TV ads of the 70s where "Sydney" the Koala laments at the end, "I hate Kwahntas"  Big grin)

Anyway since the time of that post there've been some rather interesting ones in the meantime, wouldn't you say Big grin?
 
QantasAirways
Posts: 1242
Joined: Thu Mar 15, 2001 2:55 pm

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sun Aug 12, 2001 4:14 pm

Thats okay Mark_D, we all make mistakes  Big thumbs up
Thats interesting that STILL there is nothing hapenning. Then again, we'll probably see pictures of Helen Clark sitting on her A*** drinking lemonade.

I would hope that there would be a decision by the end of this month, otherwise I would be extremely angry.
Hopefully, its in Qantas' favour  Smile

Regards
QantasAirways
Spirit of Australia
 
Mark_D.
Posts: 1360
Joined: Wed Aug 01, 2001 9:55 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sun Aug 12, 2001 4:27 pm

QantasAirways, yes taking a while, isn't it though. But then it's tricky for those guys, they're gonna get criticised no matter what they do. Or don't.

Seems like the heat's on now though, so maybe a month-end's decision is close to what'll happen.

Maybe meantime Steve Fossett could backtrack a little and go into service on his own, for the trans-Tasman Eastward runs?  Big grin

 
'Longreach'
Posts: 457
Joined: Fri Jul 27, 2001 11:36 pm

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sun Aug 12, 2001 5:06 pm


Hahahahahaha.
 
Auruminfinitum
Posts: 11
Joined: Sun Jul 08, 2001 3:34 pm

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Sun Aug 12, 2001 9:01 pm

I think that one thing that everyone in this forum has forgotten about is that the Australian FIRB (Foreign Investment Review Board) allowed the takeover of AN by ANZ. Many interested parties would have had a say in that review (such as the Australian competition and consumer commission).

I believe it is possible for the Australian Government to take some form of action if it believes that the terms of a takeover agreement are altered significantly (i.e. one year later sell off everything to a rival airline and change the balance of competition).

I am sure I read an article which stated that Peter Costello said something like the above.
 
go canada!
Posts: 2886
Joined: Wed Jun 06, 2001 1:33 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Mon Aug 13, 2001 1:16 am

Well i dont know, dont post for a few days and i get flayed by somebody who cant spell qantas(its been mentioned but since ive been inferred to as hating all things singaporean then im responding)

Number one , i dont have singapore, in fact ive never been there so i have no position to comment on their country, im sure its very nice and im not bothered abotu chewing gum(in fact i hate the stuff anyway).

Number two, i dont hate singapore ailrines, in fact i have the upmost respect for a company that has a small catchment base(ie singapore isnt very big) yet has become a major global airline> I think its excellent business and a lot of airlines could learn from their model and i dont subcribe to the view that singapore f/a's are all robots.

Thirdly, i understood that virgin blue was owned by virgin atlantic, im sorry if im wrong on that, my basis is that anyhting to do with air travel(inclduign virgin hoidays) is part of virgin atlantic, im sorry if virgin blue some how doesnt fit under the virgin aviation part, of course de facto controlled by sia since dicky branson loaned his bit to his bank to raise money.

rigth now back to the real stuff.

Singapore air and oz777 make very good points as normal.

however, i still dont see Singapore getting what it wants, thats increasing it stake.

I dont see its plan work because the figures quoted for the price wont be enough for fleet renewal and a share issue isnt the answer.

They only way singapore airlines would support anz and ansett is by gaining more influence.OZ777 mentions qantas and BA, BA backs qantas but has a vast say in matters down in oz.

Does anyone expect singapore ailines just to give anz and ansett the money without more say, that doesnt make much business sense for an airline known for its business sense.

Sia by increasing its stake and seeming to be the main source of funds for the fleet renewal will want a bigger say.

This is wear the nz government with its wierd reasonings come in.So far helen and her cronies have basically supported most of the options and have ummed and ahhed, one minute liking singapore, the next saying its too difficult and trying to argue that an anz backed by either sia or qf would be bad for tourism(still dont work that out).

They will not let their blessed airline be controlled by sia because it will be interpreted(rightly or wrongly) that thier airline is controlled by the singapore government and the nz government do not want ANY company gaining full control of their airline and thats why the sia plan will fail..

The sia plan is overall worse for the consumers of oz and nz because it will lead to a totally BA controlled qantas and qantas selling 49% to BA(something it threaterns).

if it didnt then you would get three against one and therefore the sia deal isnt the best for the consumers.

the point made about virgin blue is interesting and is the point oz 777 made about flights across the water(eg oz/nz)

however, qantas fighting singapore/anz/ansett and maybe other star carriers on its main routes isnt exactly the best for consumers either.

The interesting thing is birley investments, can Qantas purchase anything of their stake at all?
They have been a keeping a bit of a low profile in this, do they still intend to sell?

But it is advantage qantas in this, they have got the austrialian government on their side and the nz government seems to be split on this and seems to still be very reluctant to allow sia further in.

The longer this drags on, the better it is for qantas because ansett and anz dont have the cash reserves that qantas have.

If it does drag on much longer then questions will have to be raised about ansett's ability to survive(as on previous posts about this soap opera).

Ansett getting worse and dragging anz further downhill will only serve one interest, that of qantas.

if sia dont get the go-ahead then even if they dont sell their stake to qantas then qantas will have won because it would have stopped a new, larger force that would threatern it.

it would have stopped investment getting to ansett and anz and im sure qantas wont mind if ansett services are cut back further.

politics shouldnt be envolved in airlines, thats why i think airlines should bee completly privatised.
however politics is going to make sure that this drags on, press reports that singapore air provides are very welcome but they offer nothing more, just piece which doesnt explain what is going on inside helen clarks head and her lap-dog jimbo.

this still doesnt seem to be near to a conclusion and the longer it goes on, the better it is for qantas because its ansett and air new zealand suffering at the moment, not qantas.

so its still advantage qantas and one of the winners in this is British Airways for they will have air new zealand in one world or they will have further control of Qantas.

the ones losing out is ansett, air new zealand and the consumers.
It is amazing what can be accomplised when nobody takes the credit
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Mon Aug 13, 2001 5:34 am

I have scaled back on press reports until something interesting appears. Good post. However, it's too late in the night to digest and comment. Good post though none the less.
Anyone can fly, only the best Soar.
 
dalecary
Posts: 834
Joined: Tue Jan 18, 2000 10:28 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Mon Aug 13, 2001 7:51 am

Oz777,

I think you didn't quite understand my QF v STAR trans-Pacific post. I am talking from AUS-NZ to North America. AN have stated publicly they want double daily SYD-LAX ASAP and therefore the NZ SYD-LAX will revert to AKL-LAX(I guess) to increase STAR seats from region to region. UA are likely to double daily from MEL in the next 2 years and AC are believed to be scling up Australian operations to MEL,SYD and AKL, particularly when their A345s come on line. Maybe AA will have to come to QF's rescue and the A380s won't be on the route until 2006-2007.
I still think SQ could be persuaded to sell NZ. It is a business deal and if the price is right why wouldn't they sell. People have to realise the strategic interests of SQ have always and will always be with AN and the Australian domestic market. For anyone to deny this is pure folly. NZ are small fry on the SQ scale and they are profitable,but only marginally.I still don't know what plane you are talking about OZ777 when you say 6 will be available late next year for AN International routes. I know they won't be A340s(ex SQ) as I have heard both NZ and AN won't touch them on long haul routes. I gather you are talking about 744s or 772ERs but they couldn't be new as the lag b/w order and delivery of a new plane is 18-24 months. I suppose they could be leased and I can't think of an airline dumping 6 744s or 772ERs in the next 18 months.Certainly not 777s. 744s are a chance from UA,I guess as they are heavily reported to want to downsize their 744 fleet. Have you any more info on the proposed NZ 777 offer,that you hinted was very close to being finalised a couple of weeks ago?

Dale.
 
dalecary
Posts: 834
Joined: Tue Jan 18, 2000 10:28 am

RE: NZ Opposition Backs SIA In ANZ Saga|Politics. Tsk

Mon Aug 13, 2001 7:57 am

Helen Clark's reply.

Looks like your previous post is wrong singapore_air!!!
That's bad luck,isn't it.

Clark denies favouring SIA plan for Air NZ

13.08.2001 9.37 am

Prime Minister Helen Clark today rejected a media report that she is leaning towards backing Singapore Airline’s plan to increase its stake in Air New Zealand.

The government is due to rule later this month on a proposal for SIA to raise its stake in Air NZ to up to 49 per cent from a 25 per cent to help absorb losses incurred by troubled Air NZ's subsidiary Ansett Australia and help fund a major fleet renewal.

On Saturday, the Dominion newspaper reported Clark was shifting her weight behind the SIA proposal in preference to a rival plan from Qantas Airways Ltd to take a stake in Air NZ and sell Ansett to SIA.

Clark told Television New Zealand's Breakfast programme her "eyes went out on stalks" when she saw the Dominion report.

"That report is totally unfounded, inaccurate, wrong. I have a completely open mind on the issue," Clark told TVNZ

"We have very good experts advising the government on whether to jump the Qantas way or the Singapore way.

"All I can say is that it is a disgrace that a fine airline ever ended up in this position."

Hit hard by a price war in Australia and high fuel costs, Air NZ is expected to next month report a net loss after tax of up to NZ$200 million for the year to June 30.

Air NZ's unrestricted B shares closed on Friday at NZ$1.32 while the airline's New Zealand resident-only A shares last traded at NZ$1.13.

Air NZ, which owns Australian airline Ansett Holdings, carries more than 21 million customers a year with a fleet of nearly 200 aircraft and in excess of 1,000 flights a day.

Air NZ is 30 per cent owned by Brierley Investments.

- REUTERS

Dale.

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