TG992
Topic Author
Posts: 2310
Joined: Tue Jan 09, 2001 12:03 pm

*MORE* Air NZ Breaking News - Decision Reached

Tue Sep 04, 2001 11:56 am

At work here.. there's just been a buzz round the office that the Govt. has just told us they've approved SQ to acquire 40% of Air NZ...take it for what it's worth..

It's a really excited atmosphere here at the moment!
 Smile
-
 
docpepz
Posts: 1706
Joined: Thu May 24, 2001 8:20 pm

RE: *MORE* Air NZ Breaking News - Decision Reached

Tue Sep 04, 2001 12:02 pm

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.
 
9V-SVA
Posts: 1747
Joined: Wed Aug 29, 2001 3:54 pm

RE: *MORE* Air NZ Breaking News - Decision Reached

Tue Sep 04, 2001 12:18 pm

Wooohoo!!


9V-SVA  Big thumbs up
9V-SVA | B772ER
 
TG992
Topic Author
Posts: 2310
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RE: *MORE* Air NZ Breaking News - Decision Reached

Tue Sep 04, 2001 12:42 pm

hi Docpepz,

I'd class the source as pretty reliable but not 100%, feel free to shoot me down in flames if it doesn't happen  Smile

According to the whisper.. it would be announced possibly tomorrow, probably Thursday.

Id love to talk to you via email, just click on my profile to find my address and I'll tell ya what I do  Laugh out loud
-
 
wirraway
Posts: 1294
Joined: Sun Mar 25, 2001 4:32 am

RE: *MORE* Air NZ Breaking News - Decision Reached

Tue Sep 04, 2001 1:42 pm

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
on announcment.

Wirraway
 
wirraway
Posts: 1294
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RE: *MORE* Air NZ Breaking News - Decision Reached

Tue Sep 04, 2001 3:23 pm

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."

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

RE: *MORE* Air NZ Breaking News - Decision Reached

Tue Sep 04, 2001 3:45 pm

This is fantastic ecstatic wonderful and marvellous news. And I trust TG992, considering he works at ANZ anyway! It's great news. THe newswires haven't got the news yet....!!!

Hoorah!!!!!! We won!
Anyone can fly, only the best Soar.
 
TG992
Topic Author
Posts: 2310
Joined: Tue Jan 09, 2001 12:03 pm

RE: *MORE* Air NZ Breaking News - Decision Reached

Tue Sep 04, 2001 3:51 pm

Eek! I said it's just a rumour so far ok! Admittedly a strong one, given it started inside the offices here, but even so.. !

Don't go breaking out the Dom just yet  Big grin Wait till tomorrow, when word is it'd be released.
-
 
Air Taiwan
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RE: *MORE* Air NZ Breaking News - Decision Reached

Tue Sep 04, 2001 4:02 pm

Good to hear!

So what are they now going to do with the fleet?

Jimmy
(enjoying sydney at the moment... hehe~~  Smile/happy/getting dizzy)
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: *MORE* Air NZ Breaking News - Decision Reached

Tue Sep 04, 2001 4:08 pm

TG992: OK! but it's made my day considering I'm going to school in a few mins. Uhgg!

I still stand by my 45 - 49% with 35%board representation! However I doubt that would be the case! But I'm not a quitter! I'm an optimist (in SIA's affairs anyway!)!!!

Good day to you all!
Anyone can fly, only the best Soar.
 
AJ
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Another Branson Stunt

Tue Sep 04, 2001 4:31 pm

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:
"JUST JOKING!"
Wally.
 
go canada!
Posts: 2886
Joined: Wed Jun 06, 2001 1:33 am

RE: Singapore_Air

Wed Sep 05, 2001 1:07 am

its a rumor, last week we were told it was all over and its isnt until helen clark says so, so you havent won anything at the moemtn and the dream of a virgin blue-sia-anz-nasett has died too.
It is amazing what can be accomplised when nobody takes the credit
 
wirraway
Posts: 1294
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RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 1:52 am

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."

 
SInGAPORE_AIR
Posts: 11619
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RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 2:01 am

Ah Go Canada. We meet again my dear...unfortunately

"the dream of a virgin blue-sia-anz-nasett has died too."
Is that your dream? Certainly isn't mine. If it's not yours, who's is it?

Well I'm still sitting on the edge of my seat. Cabinet meeting 2100 on the 5th September and announcement near definate really, on the 6th. Hoorah!
Anyone can fly, only the best Soar.
 
go canada!
Posts: 2886
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RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 2:05 am

New zealand has had cabient meetings before and it will do again, even if helen clark annocues it, austrialia still ahs to cover it.

im not your dear thanks. and the dream was singapores and qantas's nightmare, though im expecting qantas to get virgin blue in the end, youd be surprised what richard b will do for money.

you back at school yet?
It is amazing what can be accomplised when nobody takes the credit
 
rmm
Posts: 518
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RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 5:16 am


It's still not over until the fat lady sings.

NATIONAL NEWS

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
announcements today.

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
week.

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
day.

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

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 5:31 am

Go Canada, darling, Yes i am back at school. It's very exciting. I'm predicted straight A*s (except in Religion where I'll get a B  Sad). But thanks for asking my dear, much appreciated.

RB will do anything for money? We'll see. I can't really see VB doing anything, except for sitting there looking pretty. It is pretty though.
Anyone can fly, only the best Soar.
 
Guest

Important

Wed Sep 05, 2001 9:29 am

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.


bfrith@acenet.com.au

>>>>>>>>>>>>>>>>
Dont get too excited yet.


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

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 12:17 pm

RMM

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

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 1:08 pm

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
Posts: 1612
Joined: Thu Aug 05, 1999 1:14 pm

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 2:22 pm

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.
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
 
QantasAirways
Posts: 1242
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RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 2:31 pm

I think that the main thing is that Qantas knew that they would not be favorable for this offer.
Singapore Airlines won... And that's that.

Oh well, I am so happy that Virgin rejected Air New Zealand and Ansett's offer - really serves them right.
I admire Richard Branson's attitude.

Regards
QantasAirways
The spirit of Australia
Spirit of Australia
 
aussie_
Posts: 1600
Joined: Mon Dec 11, 2000 10:39 am

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 2:32 pm

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.
 
tullamarine
Posts: 1612
Joined: Thu Aug 05, 1999 1:14 pm

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 2:38 pm

If the SA or Australian gov't wish to subsidise poorly performing regional routes I'm sure AN or QF would be happy to talk otherwise as you say...business is business!
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
 
wirraway
Posts: 1294
Joined: Sun Mar 25, 2001 4:32 am

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 3:00 pm

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.''

Loss Expected

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.''

Urgent Talks

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.

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

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 3:09 pm

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

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 4:07 pm

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...
Anyone can fly, only the best Soar.
 
tullamarine
Posts: 1612
Joined: Thu Aug 05, 1999 1:14 pm

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 4:15 pm

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 current hypocrisy helps no-one.



How free?

New Zealand's decision on the future of ANZ will show whether noises made about liberalisation of air transport are any more than that

As New Zealand's Cabinet begins its final debate this week on the ownership of Air New Zealand (ANZ) it will not only decide the future of a national airline. It will also demonstrate whether the world community is truly acting on liberalisation pledges.

New Zealand is arguably the most broad-minded when it comes to negotiating air services agreements (ASAs), claiming liberalisation is the only way forward to protect consumers and offer more choice. It has aggressively sought open-skies accords with its bilateral partners, signed a five-party multilateral pact, and even given airlines from Australia, Brunei, Ireland and Singapore the unusual right to operate domestically in the country, albeit with restrictions.

But is New Zealand practising all that it preaches? It says it wants to remove ownership restrictions from ASAs, such as outdated rules that require carriers to be "effectively owned and controlled" by their nationals. In Singapore's case, for example, it proudly announced in signing an open-skies agreement with the city state in 1997 that it included "liberal airline investment provisions". How ironic, then, that the government finds it so difficult to decide whether Singapore Airlines (SIA) can increase its stake in ANZ.

By even showing that it is agonising over a decision, New Zealand has proven how hypocritical the world is about liberalisation. For while urging others to join it in dropping ownership restrictions and opening up markets, it maintains tight restrictions on ownership of ANZ. These limit an individual foreign airline to a 25% stake, multiple foreign airlines to 35% and total foreign ownership to 49%.

SIA wants to increase its holding in ANZ, which in turn owns all of Australia's Ansett, to up to 49%. ANZ, badly in need of cash, supports the bid. New Zealand has given mixed signals on whether it will change the rules. It has promised a decision by 4 September. Without more SIA investment and a related cash-raising exercise, ANZ may be in serious trouble. With it, concerns will be expressed that cash-rich, government-controlled SIA will become the dominant force in Australasia.

Concerns over SIA's motives may be valid, as the carrier is open about wanting to expand overseas because of the limited growth prospects at home. Valid also are concerns by New Zealand that a weaker or foreign-controlled ANZ could lead to a loss of national identity and decline in air links. But the validity of concerns does not conceal the hypocrisy. When liberalisation is in a government's favour, it will argue all for it, but when it may threaten to affect voting patterns, tunes change.

Take Australia. Last year its deputy prime minister and transport minister John Anderson called for an end to the bilateral system governing air services, saying it restricts the growth of airlines and imposes higher costs on travellers. "The system of bilateral treaties encourages negotiators to focus narrowly on advancing the business interests of flag carriers, sometimes at the expense of consumers and the industries that rely on air travel," he said. "It helps to create and maintain a pool of under-capitalised, debt-dependent airlines in an industry that is notoriously cyclical."

Bold words, but Anderson has hardly stepped away from working to advance the interests of flag carriers in the ANZ-SIA-Qantas-Ansett ownership debate. He has indicated his government supports a rival proposal from Qantas to buy into ANZ, which would see SIA sell its stake and buying Ansett. If Anderson truly believes what he says, he will let market forces decide the fates of ANZ and Qantas and allow real competition, instead of being concerned about SIA expanding in a market long-dominated by Qantas.

Yes, his government has liberalised and allows foreign companies to have 100% ownership of domestic airlines. And yes, Australia is taking a more relaxed view on granting traffic rights, sometimes to the disadvantage of home carriers. But it has not worked to get rid of restrictions on international airline ownership, which cannot be separated from liberalisation promises. Qantas faces the same restrictions on its ownership as ANZ.

Australia and New Zealand have much to be proud of, and can rightly argue that the USA is the real hypocrite when it boasts about leading the way in liberalising while maintaining some of the most archaic rules on carrier ownership. But before New Zealand's ministers enter their Cabinet meetings this week, they should take a long, hard look in the mirror. Their decision will show whether countries claiming to support liberalisation are bold enough to act on their words.

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
 
docpepz
Posts: 1706
Joined: Thu May 24, 2001 8:20 pm

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 5:57 pm

I'm sure SIA will eventually buy VB for some ridiculous price, like what they paid for VS.
 
Guest

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 8:13 pm

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 think about it, Ansett is losing around $1 million a day and the VB scenario is not helping.

There was a speculation in the market that VB would be sold to Ansett/Air NZ Group yesterday but it turned out to be dissappointing and thus Air NZ share price was knocked off 10% in market trading today.

Air NZ and Ansett Australia are losing ground very fast and only one can wish they do not declare themselves bankrupt in the next few days as the airline is bleeding to death. It is in a very serious financial problem that if this matter is not fixed in the next few days, the whole company can collapse and there will be no choice but to shrink the airline down. There is a strong possibility of this as at present, insiders at Ansett have suggested that there are plans been worked on the reduce staff numbers and regional routes. This is signalling to some serious problems in the company.
 
go canada!
Posts: 2886
Joined: Wed Jun 06, 2001 1:33 am

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 8:55 pm

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 dates ebing out further back.

virgin blue is a threat to singapore, otherwise it wouldnt have wanted to put restriction on it in the first place-no doubt you will deny it.

Sinagpore expcted virgin to fall in line but they didnt bank on dicky branson who wont let anyone push him around, the whole virgin deal is unravelling very soon because virgin is a rival to ansett and air new zealand.

AIr NZ have been shokced over this and isa dawning on them that ot everything runs smoothly.

even if helen clakr annouces that singapore increase their stake, i still expect the austrialian government to block it, under lobbying from qantas and because of politics, an election soon and the prospect of qantas having to resort to a larger BA stake as well as having ansett owned by the singapore goverment isnt something howard would like to be associated with.

the price singapore pays is going to be very large for an airline with deep-rooted problems, the shares are falling.

so im sorry if you are getting bored-prehaps it is better for you to be concerntrating on living up to your promises of getting excellent grades(good luck by the way because it looks like the promise of a virgin blue-ansett isnt happening anytime soon.

while i dont really like dicky B that much, he has the sense to reject air new zeland and throw spanners into the works.

well done richard!
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: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 11:50 pm

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.

Singapore Airlines has won period. And I'm just waiting for them to announce that they have won. I doubt that the Australian Govt. will veto the deal. Blah blah blah.. you know the context of this I've said it loads of times before....

And thanks Go Canada. I hope to pass with flying colours! I'm so intelligent!
Anyone can fly, only the best Soar.
 
Guest

RE: *MORE* Air NZ Breaking News - Decision Reached

Wed Sep 05, 2001 11:57 pm

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 when the super-long-haul aircraft bypass SIN. With VB as a free unit, it does not need or have an obligation to feed traffic to SIA. Hence, SIA management will see this as a thorn in their masterplan.

Understand?

Please wake up your idea, try not to show your age and dont keep thinking SIA is the best all the time. Though it may be my favourite airline, SIA still has much to learn from many other organisations in the world.

-Regards, VA
 
wirraway
Posts: 1294
Joined: Sun Mar 25, 2001 4:32 am

RE: *MORE* Air NZ Breaking News - Decision Reached

Thu Sep 06, 2001 1:40 am

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 NZ$0.99:

Skies grow dark for Air NZ

Nick Venter and Roeland van den Bergh
06sep01

THE future of Air New Zealand was up in the air last night amid suggestions Singapore Airlines had slashed its offer to raise its holdings in the NZ national carrier.

SIA had been prepared to pay $NZ1.31 a share but sources said yesterday the offer was cut to $NZ1 as concern mounted about the airline's financial position.
Air NZ spokesman Mark Champion confirmed the airline's board yesterday held an unscheduled crisis meeting but would not say whether the directors had satisfied the NZ Government's request for extra information.

NZ Finance Minister Michael Cullen told Parliament yesterday the Government could not make decisions on the airline's future until it was "able to be precise about its plans and what implications those plans have".

SIA is seeking government approval to increase its shareholding in the airline from 25 to 49 per cent.

The increase would recapitalise Air NZ and help finance a multi-billion-dollar fleet upgrade for its ailing subsidiary, Ansett Australia.


The true state of Ansett's finances has reportedly only become apparent in the past few days as a result of NZ government negotiator Rob Cameron's inquiries and Singapore Airlines's own investigations before increasing its stake.

The airline suffered a further setback on Tuesday when British tycoon Sir Richard Branson decided against selling his Virgin Blue airline to Ansett Australia. The cut-price airline would have helped Ansett compete against Qantas.

In the wake of that rejection, SIA refused an offer from Air New Zealand to buy Ansett, sources said.





 
go canada!
Posts: 2886
Joined: Wed Jun 06, 2001 1:33 am

RE: *MORE* Air NZ Breaking News - Decision Reached

Thu Sep 06, 2001 1:43 am

ha ha ha ha ha ha ha
It is amazing what can be accomplised when nobody takes the credit
 
wirraway
Posts: 1294
Joined: Sun Mar 25, 2001 4:32 am

RE: *MORE* Air NZ Breaking News - Decision Reached

Thu Sep 06, 2001 1:57 am

If the last part of this article published
in the last hour

("In the wake of that rejection, SIA refused an offer from Air New Zealand to buy Ansett, sources said.")

is true, the question is, what happens to Ansett???

This is a real disaster if confirmed.

Wirraway
 
wirraway
Posts: 1294
Joined: Sun Mar 25, 2001 4:32 am

RE: *MORE* Air NZ Breaking News - Decision Reached

Thu Sep 06, 2001 2:22 am

If the last part of this article published
in the last hour

("In the wake of that rejection, SIA refused an offer from Air New Zealand to buy Ansett, sources said.")

is true, the question is, what happens to Ansett???

This is a real disaster if confirmed.

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

RE: *MORE* Air NZ Breaking News - Decision Reached

Thu Sep 06, 2001 2:31 am

Oh I dunno what to think now! LOL. Just get it over and done with ffs. SIA and ANZ and NZ Govt. FFS! There are some desperate people here. Wish I had a time machine...
Anyone can fly, only the best Soar.
 
wirraway
Posts: 1294
Joined: Sun Mar 25, 2001 4:32 am

RE: *MORE* Air NZ Breaking News - Decision Reached

Thu Sep 06, 2001 2:37 am

Singapore_Air

and you say you are bored, this is no joking matter.

Wirraway

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