This is so bizarre, it could be true.
QF owned 19.9% of NZ until NZ bought 50% of AN. SQ wanted to buy into AN but NZ exercised its right of first refusal and ended up buying 100% of AN. SQ are negotiating to buy part of NZ but is not really interested in NZ but sees it as the only way to get access to AN. This latest episode throws all the balls in the air again and given the regulatory approvals required will take months to sort out. The possible conclusions could be
Status quo with SQ buying into NZ. Looked very likely last week but SQ are getting impatient with NZ's management and the NZ government.
QF buying into NZ. This is out of left field but would result in
- NZ leaving Star and joining Oneworld
- NZ selling AN to SQ. SQ would then probably pour heaps of money into AN for fleet renewal and force Virgin to use its operations as AN's discount operation.
- NZ and QF forced to give up a huge number of trans Tasman slots to AN to preserve competition on this route. Without this regulatory approval of QF's takeover is highly unlikely.
- AN or SQ would probably resume management control of Ansett NZ which News sold last week.