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Ansett/ANZ/QF/SQ Part 2

Thu Jun 14, 2001 6:34 am

At the sugestion of a few of the other regulars who have posted over 200 items, we start part two of this "Soap Opera" (thanks Wirraway).

This will cut down on the loading time!!!.

And to add an element to the picture. Virgin Blue: A very brave man taking on the ACCC and Alan Fels (just after he got his gong). And Virgin is going to post some interim results next week - should make some very interesting reading.

I am hearing a little bit of scuttlebut about Virgin also changing their 737-700 delivery schedules - any one with an update?

An amazing that the "Freedom" in AUS seems to have died as well.

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RE: Ansett/ANZ/QF/SQ Part 2

Thu Jun 14, 2001 6:50 am

At the moment, this deal looks as clear as ditchwater and may even be ditchwater. Let's just see what tomorrow's Yahoo FInance Singapore says...
Anyone can fly, only the best Soar.
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RE: Ansett/ANZ/QF/SQ Part 2

Thu Jun 14, 2001 10:28 am

BIL has an interesting way of running a business. run a perfectly good airline into the ground, threaten the NZ govt and public with bankruptcy of the national airline and ask for double the asking price. BIL you got to buy the A shares in the first place because you are meant to be NZ owned. now you want your shares to be treated like the others - fair?
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RE: Ansett/ANZ/QF/SQ Part 2

Thu Jun 14, 2001 12:52 pm

Thanks for starting the new thread, well today it is
being reported that SIA and QF will meet seperatley in
Sydney this afternoon
with Toomey and the board, and hopefully we will have
some sort of direction by Monday, in the meantime
QF shares are taking a bath down to $3.13 from $3.45
last Friday.

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RE: Ansett/ANZ/QF/SQ Part 2

Thu Jun 14, 2001 1:34 pm

Some of the guys over on the PPrune have thought
up some dire scenarios, here's a couple of reposts:

PPRuNe Flight Deck Qualified
Posts: 123
Registered: Feb 99
posted 12 June 2001 05:01
Yes there is something sinister, it's called A SCALE- B SCALE. QF will use the 717 against the 737 and when SQ buys AN and VIRGIN BLUE they will use Virgins 737 against AN 737, count on it.
Going Boeing
PPRuNe Flight Deck Qualified
Posts: 119
posted 12 June 2001 13:14
I think that Ferrari is very close to the mark. When SQ buys AN the AN assets will be transferred to VB, the Ansett brand name will dissapear and AN staff will be invited to tender for jobs with VB (at VB rates of pay of course) Bloody scary scenario isn't it and I sincerely hope that I am wrong because this will cause a lot of heartache for a lot of decent people at AN.

PPRuNe Flight Deck Qualified
Posts: 57
Registered: Oct 1999
posted 13 June 2001 11:22
I reckon Going Boeing has it spot on. AN needs billions spent on it to make it viable, whilst SQ has perfectly good aircraft pushed up against the fence. When SQ buy AN they will take the assets they want and flog the rest. As to the staff, I doubt SQ will embrace the existing AN industrial culture. Given that VB is for sale for $120m US, there is only one outcome that I can forsee.


Kiwi dave
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RE: Ansett/ANZ/QF/SQ Part 2

Thu Jun 14, 2001 2:15 pm

I hope that we will get a decison soon.
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RE: Ansett/ANZ/QF/SQ Part 2

Thu Jun 14, 2001 2:26 pm

I'm glad the SQ representatives are meeting with the QF board and Toomey etc. today.
Glad to see them working it out... Finally.

Hope to see good outcomes.
Thanks for making a new threat
Spirit of Australia
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RE: Ansett/ANZ/QF/SQ Part 2

Thu Jun 14, 2001 3:48 pm

Hope there are no fisitcuffs

Australia's Qantas/Air NZ -2: Meeting In Sydney
(MORE) Dow Jones Newswires 14-06-01

Meeting In Sydney

SYDNEY (Dow Jones)--Qantas Airways Ltd. (A.QAN) chief executive Geoff Dixon said Thursday he will meet later this afternoon with independent directors of Air New Zealand Ltd.(A.AIZ).

Dixon said during the question and answer session of a luncheon speech that a statement will be issued after the meeting.

Qantas has proposed that it take up to 49% control of Air NZ, its rival on international routes and the owner of the Ansett Australia domestic carrier, with the purchase of significant stakes from 25% shareholder Singapore Airlines (Singapore: SIAL.SI - news) Ltd.(P.SAL) and 30% shareholder Brierley Investments Ltd. (A.BRY).

SIA will buy Ansett from Air NZ under the Qantas proposal, which has been roundly criticized by politicians in Wellington as a threat to the flag carrier's independence and international landing rights.
Qantas/Air NZ Proposal -2: To Be Lodged Shortly
(MORE) Dow Jones Newswires 14-06-01

To Be Lodged Shortly

SYDNEY (Dow Jones)--Qantas Airways Ltd. (A.QAN) Chief Executive Geoff Dixon said Thursday the Australian airline will lodge its formal proposal with Air New Zealand Ltd. (A.AIZ) later in the day.

Qantas' proposal to take a significant stake in rival Air New Zealand will be lodged "very shortly," he said.

The deal involves Air New Zealand's Ansett Australia unit being sold to Singapore Airlines (Singapore: SIAL.SI - news) Ltd. (P.SAL).

"I think it's a very, very good deal because I think both Air New Zealand and Qantas have very similar cultural values," Dixon said. "We believe in the same in how we run airlines. It will give us some critical mass."

Separately, Dixon said its proposed no-frills international carrier would have its own brand and livery but would be owned by Qantas. This airline would service routes that Qantas previously serviced but abandoned, including China, Athens and Seoul.

1419 [Dow Jones] Qantas (QAN) CEO Geoff Dixon confirms Sydney meeting this afternoon with Air NZ (AIZ) independent directors to discuss "partnership" proposal, which first presented as "control" plan but reshaped given strong political opposition in Wellington. Deal could take 6 months to settle, analysts say, due to political and regulatory hassles, but will boost stock outlook for each company as barriers cast aside. Singapore Airlines (Singapore: SIAL.SI - news) will also gain as deal mulls SIA purchase of Ansett Australia. (IGP)

Anyone can fly, only the best Soar.

RE: Ansett/ANZ/QF/SQ Part 2

Thu Jun 14, 2001 7:15 pm

Good grief,

Wirraway, are you not getting a bit carried away with the ramblings on pprune? I wouldn't take much heed of what they gossip about than what I would here.

I can honestly say that such a major shakeup of say Virgin B. replacing Ansett would be such a disastrous and ridiculous event, the feds hear in Oz wouldn't let it happen. What serious business traveller would travel with VB? I a mean seriously? You couldn't transfer the amount of qualified staff over and expect it to work.

The fact of the matter is AN works quite well even with the interferance of NZ. SQ know that the money to be made in Australia is not with bargain basement carriers but with high quality services and a good section of the premium business market. Any marketing manager will tell you that.

Australia can afford to have "one" discount carrier not two or three, even one is pushing the limit. SQ and AN have had relations for a little while now and it's well known that an AN under SQ will be nurtured and given huge amounts to expand it's network internationally and domestically.

Those of you who have flown AN International biz or econ, can you honestly tell me if their is another gweilo airline in the region that can offer the service and friendliness of AN (besides SQ - non gweilo)?

Do I need to tell you how many of my business collegues who all regularly fly Asia with AN and absolutely (sorry) adore it then are forced to fly QF / NZ or UA to the USA and wish vehemently for some AN style service there?

There are a couple of guys / girls I know in Marketing who will not fly those three to the West Coast USA, preferring to fly AN (or SQ) into Asia then to the USA via that way, usually with SQ.

The VB stories are pure folly, SQ would not be stupid enough to destroy a landmark Australian institution in the name of cheap and nastyness.

If the stories that are being leaked to the press are truthfull then you can bet your bottom that this deal is going to go through some way or another. Why waste so much time? They (boards of directors) don't dilly dally around when it comes to making decisions and sorting these things out, however it takes time for the regulators (such as the NZ Government who we said to have pooh poohed the idea) to see the light.

Expect AN to be in SQ ownership very shortly (whatever that means) and complete restructuring of AN back to the way it was, with the exception of some streamlining - expect a bit of quiet then a massive marketing campaign that is elegant and superfluous.

(Funny how my parters sister works for one of the major PR companies in Oz, she KNOWS what is soon to happen with the PR for AN.. No hints though!)

Let NZ & QF join forces, it's a great move for the survival of both, but an AN / SQ is going to feed the Kanga some pet food of it's own. (Am I funny or what?)

***A big hello to all the staff at AN again... Things will happen soon!! ***



***Absolutely Ansett***
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RE: Ansett/ANZ/QF/SQ Part 2

Thu Jun 14, 2001 7:52 pm

What ever happens in the next few days, you can bet that birley's sticky hands will be all over it.It seems that what ever happens, they will come out winners.It seems that they are being quite vocal at the moment.

Brierley calls for end to Air NZ's split share structure

AP - Air New Zealand's biggest shareholder, Brierley Investments, wants the New Zealand government to dismantle the company's complex A and B stock ownership structure to help it climb out of debt.

Under a scheme to keep the airline New Zealand owned, the airline's A shares can be owned only by New Zealand residents to ensure it can comply with treaties which give it foreign landing rights. The B shares can be owned by foreign investors like 25 per cent shareholder Singapore Airlines.

Brierley chief executive Greg Terry said today that if there was just one class of share it would be easier for the heavily indebted airline to raise capital in Australia, where it derives more than half its revenue.

"I do think that going forward there would be greater flexibility in capital raising for the airline if we didn't have that (share) distinction," he said.

"It's obviously important that the government maintains the control necessary to ensure that it remains a national flag carrier and that there is no risk to the treaties and that therefore you'd have to have more than a dropping of the A-B distinction," Terry said in an interview with Radio New Zealand.

He said Air New Zealand won't know how much new capital it needs until investment banker Salomon Smith Barney delivers a report on the company's options.

One of those is Qantas' proposal to buy Brierley's 30 percent stake and Singapore Airline's 25 percent holding and for Air NZ to sell its loss making Australian unit, Ansett Australia, to Singapore Airlines.

Air New Zealand chief executive Gary Toomey said today the airline's independent directors will meet with Qantas and Singapore Airlines tomorrow to discuss the proposal.

The plan will have to overcome strong political opposition in New Zealand and regulatory hurdles, including a 25 percent cap on ownership by a foreign airline.

Terry said Qantas had not made a formal offer yet.

He restated that Brierley was not interested in selling unless offered around double the current price of $NZ1.10 a share.

©AAP 2001
It is amazing what can be accomplised when nobody takes the credit
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RE: Ansett/ANZ/QF/SQ Part 2

Thu Jun 14, 2001 10:10 pm

The reposts from PPrune are what a few paranoid pilots
have posted there, they are certainly not mine, as I
have stated many many times all I have said is that
ANZ will lose control of Ansett, and at this stage of
the game looks like SQ will be the winner. You don't have
to give me a lecture on Ansett as I worked there for
many years, lighten up a bit, its not the end of the
world.  Smile/happy/getting dizzy

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RE: Ansett/ANZ/QF/SQ Part 2

Thu Jun 14, 2001 11:14 pm

it will be a mistake for airnz to let an go to sq. they need to keep sq/nz/an together. they have so much potential together and complimentary. this trio once well capitalised with leave qf in its wake.
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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 12:22 am

I don't think it will be a mistake. The "3" Alliance will continue regardless of wheter AN is sold to Singapore Airlines. (3 - Singapore Airlines, Ansett Holdings, Air New Zealand).
Anyone can fly, only the best Soar.
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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 12:51 am

From this mornings "Australian"

Qantas takes a hit
By Steve Creedy, Aviation writer
June 15, 2001
THE Qantas plan to buy into Air New Zealand suffered a hammer blow yesterday after cash-rich carrier Singapore Airlines said it would be prepared to buy a "significant" stake in Ansett Airlines.

The development came just hours before Qantas executives were to put a formal proposal to Air NZ's committee of independent directors last night outlining plans to take a stake in the carrier.

While the Singaporeans did not put a formal proposal to the Air NZ committee, chief executive Cheong Choong Koong confirmed that the option was raised as a way of bolstering the Kiwi carrier's balance sheet.

Dr Cheong said his plan could involve Singapore Airlines buying a "large stake" in Ansett while retaining, and possibly increasing, its existing 25 per cent holding in Air New Zealand. He would not put a figure on the stake at this stage but observed that Ansett needed "a lot of capital".

"Given the present state of its balance sheet, Air New Zealand is unable to assist," Dr Cheong said.

"So if we buy just a token stake in Ansett, then Air New Zealand would still have a problem coming up with its share of capitalisation and funding of Ansett's needs. So it would have to be a quite significant stake."

While Air NZ says it is not in any near-term financial difficulty, the carrier is looking at ways of funding its long-term needs and a badly needed modernisation of Ansett.

Qantas was due to put its formal proposal to the independent directors last night. Chief executive Geoff Dixon refused to comment when asked about the plan in Sydney yesterday.

Qantas wants to buy up to 49 per cent of Air New Zealand in a deal that would see SIA pick up 100 per cent of Ansett Holdings.

However, the deal faces political opposition in New Zealand and Dr Cheong said it was not SIA's preferred option.

"But we wouldn't reject it, because until we find a better alternative and we are sure that it's workable, we should be open to all possible solutions," he said.

The Singaporeans also see the need to make a decision on Air New Zealand's funding soon.

"We owe it to the employees, the customers, to our shareholders," Dr Cheong said. "As long as we do not move, morale of staff is bound to be affected. And if it's not good for staff morale, it's not good for the customers and it's not good for business and not good for shareholders."

It is not clear how dependent an SIA investment in Ansett would be on a decision by the NZ Government to raise the 25 per cent cap on investment in Air NZ by a foreign airline.

Dr Cheong said it was inappropriate to comment until he had spoken to the NZ Government but the option involved keeping its present stake and "possibly" raising it.

"We have made, or we will be making very soon, requests for appointments in Wellington," he said.

Asked whether there was a situation where Singapore Airlines might pull out of Air NZ, Dr Cheong said: "We don't take investment in airlines casually. When we invest in an airline it's with a long-term objective and we are there to stay.

"And while we wouldn't reject the Qantas proposal, what has to be demonstrated to us is why we have to leave Air NZ."

Earlier, Mr Dixon warned an Australian Institute of Company Directors lunch in Sydney that Qantas's status as an Australian icon was blocking a global future that would secure the airline's success.

He renewed calls for changes to foreign investment legislation to give the airline more flexibility and better access to foreign capital.

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SIA Could Scupper QF Ideas

Fri Jun 15, 2001 3:34 am

Singapore Airlines may scupper Qantas plan

SYDNEY (Reuters) - A radical proposal from Qantas Airways Ltd to take a stake in rival Air New Zealand Ltd and reshape regional aviation hit turbulence on Friday as Singapore Airlines (Singapore: SIAL.SI - news) Ltd sketched out an alternative plan.

Instead of selling its 25 percent stake in Air NZ and taking full control of its loss-making Ansett Australia carrier, SIA said it was prepared to buy a "significant" direct interest in Ansett and possibly lift its Air NZ stake.

"We must go back to basic principles. Ansett needs capital and the balance sheet of Air NZ does not allow it to help," SIA chief executive Cheong Choong Kong told Singapore's Business Times.

"If we have only a small stake in Ansett, Air NZ would still have to put up its share of the capital."

Analysts say cash-rich SIA is reluctant to help Air NZ find a way to recapitalise Ansett and fund a NZ$3-NZ$5 billion fleet upgrade while its stake is limited to 25 percent by New Zealand foreign ownership regulations.

Taking partial control would also avoid SIA consolidating Ansett's debt.

"We don't have all the time in the world. The Air NZ group and Ansett in particular are facing serious problems," Cheong said.

"We must identify all possible alternatives and make decisions quickly. The longer this serious situation remains unresolved, the worse it will be."

Speculation that one of Air NZ's Star Alliance partners could come to its rescue also resurfaced on Friday, as the New Zealand Herald reported in an unsourced story that United Airlines could take a 10 percent stake in Air NZ.

Tim Ross, Asian aviation analyst at UBS Warburg in Auckland, said SIA moves could form another obstacle in the path of the Qantas proposal, which is already beset by a swathe of regulatory and political hurdles.

"Added to that you've got United throwing its hat in the ring, you've got the New Zealand government looking at independent advice on what it should be doing with regards to ownership and investment," Ross told Reuters.

"It all adds up to making Qantas' overtures perhaps less likely to be accepted."


Sources close to the negotiations said they expected the Qantas plan to be the first in a series of proposals put forward.

Air NZ chief executive Gary Toomey said earlier this week the carrier's board would consider several strategies at its board meeting on Monday.

"No doubt the views of Dr Cheong will be considered by the independent directors which met with him yesterday. Meetings are on going, discussions are continuing," Geoff Lynch, Ansett spokesman said on Friday.

Qantas declined to comment.

Cheong told the Australian newspaper the Qantas proposal, which would also see the Australian carrier buy part of Brierley stake, was not his preferred option but SIA would consider all plans.

"We wouldn't reject it because until we find a better alternative and we are sure that it's workable, we should be open to all possible solutions," Cheong told the newspaper.

Air NZ blocked SIA's planned A$500 million purchase of News Corp's 50 percent stake in Ansett in 1999, when it used its pre-emptive rights to take full control of the second-ranked Australian domestic carrier.
Anyone can fly, only the best Soar.
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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 3:37 am

NZ Govt/Singapore Airlines/Air NZ -4: Needs Fresh Equity
(MORE) Dow Jones Newswires 15-06-01

Govt Agrees To Meet

WELLINGTON (Dow Jones)--Singapore Airlines (Singapore: SIAL.SI - news) (P.SAL) has sought a meeting with the New Zealand government to discuss Air New Zealand (A.AIZ) ownership issues, a spokeswoman for Finance Minister Michael Cullen said Friday.

The government has agreed to the meeting although the date still has to be set, the spokeswoman told Dow Jones Newswires.

The meeting will be with Air New Zealand's "shareholding ministers," who are Cullen and Transport Minister Mark Gosche, she added.

(MORE) Dow Jones Newswires 15-06-01

0308GMT May Also Meet PM

"A meeting has been sought and yes, he (Cullen) will meet them but that's all I can tell you. I don't even know if a time has been set down," the spokeswoman said.

Singapore's Straits Times Friday reported that Singapore Airlines is leaning toward retaining or increasing its 25% stake in Air New Zealand and buying part of the carrier's Ansett Australia unit instead of participating in Qantas Airways' takeover proposal.

"The Qantas proposal is not SIA's preferred option," SIA Deputy Chairman Cheong Choong Kong said, according to the report.

Under the Qantas transaction, the Australian carrier would acquire up to 49% of Air New Zealand by buying Singapore Airline's stake and Brierley Investment's (A.BRY) 30% stake.

Once in control, Qantas would sell Ansett Australia to Singapore Airlines.

The Qantas proposal has met with stiff opposition from local lawmakers who are concerned that a takeover of Air New Zealand would jeopardize the airline's international landing rights, hurt tourism promotion, and stifle competition.

Singapore Airlines, however, could face similar opposition to Qantas because under current ownership rules, 25% is the maximum interest a foreign airline can have in Air New Zealand.

A spokesman for Prime Minister Helen Clark said Singapore Airlines had also requested a meeting with Clark next week but she is yet to respond.


11:46 PM Needs Fresh Equity

Singapore Airlines has also requested a meeting with Deputy Prime Minister and Alliance Party leader Jim Anderton.

The Alliance is the junior partner in New Zealand's center-left minority coalition government.

A well placed Alliance Party source told Dow Jones Newswires there is a view in the Alliance Party that the best outcome for Air New Zealand would be if Singapore Airlines bought loss-making Ansett Australia.

The meeting between Anderton and Singapore Airlines is expected to take place next week, the source added.

Air New Zealand's board is meeting Monday and Tuesday, but the company is declining to reveal the meeting's agenda.

The airline's future ownership structure is currently the subject of intense speculation amid uncertainty about how it will fund a NZ$5 billion fleet upgrade and expectations the carrier will report a loss for the year to June of about NZ$170 million. Restrictions on foreign ownership of the airline are constraining its ability to raise much-needed new equity.

Around 0428 GMT, shares of Qantas were up 5 cents, or 1.6%, at A$3.26, Air New Zealand's resident-only A shares were up 5 cents, or 4.6%, at NZ$1.15, and shares of Singapore Airlines were down 30 Singapore cents, or 2.3%, at S$12.60.
SIA cool to Qantas' proposal on Air NZ

Singapore Airlines has grown 'quite attached' to Air New Zealand and is unwilling to give up its stake

By Nicholas Fang

SINGAPORE Airlines' (SIA's) chief executive yesterday gave the cold shoulder to Qantas' bid to muscle in on its quarter-owned Air New Zealand (Air NZ), after a meeting in Sydney yesterday to discuss what was on the table.

One option could be for SIA to buy into Ansett and keep or raise its Air NZ stake, says Dr Cheong.
In the strongest indication so far of SIA's stance on the move by its Australian rival to create a mega Asia-Pacific airline, Dr Cheong Choong Kong, who is also SIA's deputy chairman, said yesterday: 'The Qantas proposal is not SIA's preferred option.'

Dr Cheong, who was speaking to reporters in Singapore after returning from Sydney, said there were other options open to SIA.

Qantas wants to buy up to 49 per cent of Air NZ by buying all, or part of SIA's 25 per cent stake and Singapore-based Brierley Investment's 30 per cent holding.

In return, Air NZ would sell SIA its struggling unit, Ansett - which trails behind Qantas as Australia's No 2 airline.

The SIA chief said that while the national carrier was willing to help Ansett - which needs cash to upgrade its fleet - 'we would have to be persuaded why we should give up our stake in Air NZ'.

SIA had become 'quite attached' to Air NZ after working with them for many months, he said.

He disclosed that one option could be for his airline to take a stake in Ansett and still keep its Air NZ stake, possibly raising this above the 25 per cent limit to which it is now restricted, if the Kiwi government gave the green light.

When asked how big a stake in Ansett would be attractive, he indicated that it would have to be substantial.

'Ansett needs capital and the balance sheet of Air NZ does not allow it to help,' he said.

'If we have only a small stake in Ansett, Air NZ would still have to put up its share of the capital and it does not have the resources to do that.'

He emphasised that this was just another option, and not a proposal.

The meeting in Sydney involved an independent committee set up by the Air NZ board and Qantas executives. SIA was there as a shareholder of the Kiwi carrier.

Dr Cheong also said yesterday that the rumours of SIA 'egging' on Qantas in its bid were untrue, although this would allow it to achieve its long-held aim of owning Ansett.

SIA has been seeking a foothold in the lucrative Australian domestic market for some time and tried but failed to acquire a 50 per cent stake in Ansett in 1999.

Given the latest developments, Dr Cheong said that SIA would be 'making appointments as soon as possible' to speak to the New Zealand government about the proposed deal.

The Kiwi government indicated two weeks ago that it was against foreign companies holding a controlling stake Air NZ as this might affect landing rights and New Zealand tourism.

When asked if he felt the deal would be resolved soon, Dr Cheong said: 'We do not have all the time in the world.'

'The Air NZ group and Ansett, in particular, are facing serious problems. We must identify all possible alternatives and make decisions quickly.'
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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 3:46 am

"If SIA don't wanna sell, Qantas can kiss ANZ buy buy(byebye) "

eheheheheh  Smile/happy/getting dizzy  Smile/happy/getting dizzy  Smile/happy/getting dizzy
Anyone can fly, only the best Soar.

RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 3:46 am


Sorry if I sounded a bit crabby, I assure you I wasn't, just in a bit of a hurry to post. And no I didn't think that your 'views' were that of paranoid pilots. lol

The latest news article you have posted suggests SQ are playing games with the media. Take a look at all the reports and you can see the game they are playing, Asian businessmen hate to lose face and they already have once with NZ / AN.

They are going to keep 'mum' about anything that will be happening in the future. The announcements will probably be made without any hint of whats going (aka - Impulse / QF) after the media hype has died down.

Further to my comments on the 'huge marketing campaign' my partners sister is one of the marketing co-ordinators at a PR co, she reckons the work she is helping to do is "forward marketing contract costs" and not related to NZ in any way.

Obviously she wouldn't tell me who it was (nor would I go so far as to post that type of stuff on here) but I reckon we could hazard a guess! (Wouldn't you just die if it was someone like Virgin??)

If SQ does take a bigger stake in NZ expect a bloodbath in the NZ boardroom. No doubt about that! I still beleive it would be better for NZ to get into a marriage with QF, along with some conditions of course.

Anyhow enough of my ramblings! What did you do at AN?



***Absolutely Ansett***
Air Taiwan
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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 4:31 am

The proposal I've always been waiting for...

SQ takes over 50% of AN, maybe taking up to 49% of NZ, and they're joined together to flight the dominant Australiasia airline -- QANTAS...

that makes much more sense.

does UA REALLY want to get involved into this? I mean, it is good to see other STAR members helping out but... what's UA got to do with all these?

RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 9:45 am

I note a lot of "pro" SQ posts forthwith. Hmmmm, the frightening thing for NZ is if SQ gets control of NZ the blood will flow - so to speak. You can kiss goodbye any expansion of NZ. AN will take over, under the wing of SQ.

OK, lets put our Singaporean friends in their respective places. Lets face some authorative facts. SQ has suffered from a recent nasty crash where many lives were lost, may we also comment on the silk air crash which is still unresolved and the relatives of that accident are still not compensated for what they should receive.

SQ has a few bugs up it's collective arrogant ass. Their mantenance is dubious (according to world authorities) and their business practices are supsicious. Not that that would be a problem for AN (Australian regulations to adhere to). SQ treats their staff quite badly - again not a problem for AN.

Let me add that the GDP of Singapore is 1/3 of the City of Sydneys. And that is one city in one state of Australia. Did our little Singaporean friends realise that if Singapore does not change their own "foreign ownership rules" SQ will be blocked from further investment in other countries carriers.

A close source to the Labor party in Australia suggested that a buy-back of Australian institutions to save them from foreign owenership would include AN.

More scandal to the fray.



***Absolutely Ansett***
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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 11:38 am

Let me commend you on your Dow Jones reposts,
bloody fantastic, now, how much would I have to
pay a month to subcribe to the "Dow Jones newswires"?,
pretty exspensive I'll bet.

No problems mate with your post, trying to read between the lines of what Dr Cheong has said, I think
that either deal that happens, SQ wins Ansett, surely
their in the box seat. If they stick with the Kiwis I
don't believe a 50-50 deal is possible and will want
control. In answer to your question, I worked at Ansett
at check-in, a stint at Ansett-Pioneer as a coach captain and later in the office.

PS: Virgin Blue have just announced Brisbane-Canberra
starting on July 12.
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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 12:02 pm

The thing that catches my attention is the "foreign ownership rules".

AFAIK, as long as SIA remains a 51% Singapore owned entity (landing rights stuff), SIA can be 100% NON-Government owned. I think the same goes for many countries in the world, thats why the NZ government is concerned where percentages comes into play.

In fact, that goes for many other "government owned" companies too. When Singapore was separated from Malaya in 1965, the market was too small for the private sector to operate.....in fact, i can safely say that the government had NO CHOICE but to take over some of the major sectors like bus services, airlines, land developments, banks etc....(would anyone want to start a bank branch in East Timor now ???)

That's why Singapore is normally known as Singapore Inc. , coz it dates back to the time where the government had to create and nuture it's private sector, and many of the companies had already been "released" of government intervention in their dealings (eg. Singtel takeover of Optus).

Back to SQ/AN/NZ, SQ would want a return for its price on Air NZ - (NZ$3 and above), which is 100% premium over AirNZ's closing price, so if QF has to pay....its gonna be more than NZ$3 for it's 25% stake.

SIA is holding the trump card actually.....if it does not sell it's stake, there is no way QF is gonna get the AirNZ stake. So expect QF to pay for extra $$$ for Air NZ. (Talk about dubious business dealings..).

In this way, not only SIA get a trouble filled AN, it would also hamper the expansion plan of QF if it gets AirNZ, so both parties would be on a more "equal footing", so QF may not neccessarily be "stronger" in an instance.

Whatever SIA/QF/AN/NZ, decide on its their business, i am not paid to do the worrying for them! But expect QF to pay a high price to take over AirNZ.

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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 12:19 pm


According to the CIA world factbook, the GDP per capita of Singapore was US$27 800, while that of Australia was $22 200.

'Their mantenance is dubious (according to world authorities) and their business practices are supsicious. '

Could you please quote who the 'world authorities' are and give examples of how their business practives are suspicious?

This is quite interesting.

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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 12:24 pm

As always ingenious Cheong has pulled the wool over everyone's eyes and is in the pilot's chair. Hoorah!

MX5: Although it was an interesting post, i resent the fact that you called Singaporeans "Did our little Singaporean friends realise that if Singapore does not change their own "foreign ownership rules" SQ will be blocked from further investment in other countries carriers"

I think this deal is looking even more precarious. If Cheong says that the QF deal isn't in SIA's best interests, then QF (and possible ANZ / AN) will have to play by SIA's rules.

I know what the non-SIA-Lovers are thinking. How arrogant! I think that yes of course it is, but that's business and business is a Bitch. Take it or leave it.

I think this is a new turn. let's just hope it';s coming to Singapore  Smile/happy/getting dizzy

As to my Dow Jones subscriptions... Well. What subscriptions???
Anyone can fly, only the best Soar.
Topic Author
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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 12:32 pm

I want now to throw another "hand grenade" into the equation.

Dixon is very good at setting up smoke screens. The "announcement" of the rebirth of "Australian Airlines" to fly the routes that QF have pulled back from. An all economy International airline.

The strategy is to counter ANZ's increased use of BNE as a hub for Asia services and paying ANZ crew at NZ rates of pay. Now you can start to see why the Unions are spoiling for a fight, and why QF have busily been training staff in Manila - (why not Avalon). Who wants to fly to Greece, all economy with reduced cabin service and no FF benefits!!

BUT: The announcement is a further attempt to undermine the value of SQ/AN/ANZ. It worked with Impulse (frighten the backers with the competition issue) and what better way than introduce more "competition" to weaken potential AN investment options.

Word on the street is the QF deal has been dumped. As this scenario grew out of Singapore, the whole thing has a strategy that smells. Required outcome. Remove Cushing, gain the original control of AN, remove BIL from ANZ, (SQ do not like the 'Malayan' connection), and the way to do that is back the NZ Govt into corner to make them change the rules.

One comment Mx-5. Understand your comments about how some people "hate ANZ/QF/UA", but go to the USA by an Asian carrier. They must have more money and time on their hands than they know what to do with. Any one of my staff doing that would be out the door.

And please do not nuture the idea that SQ will leave the 'culture' at AN alone. My sources tell me SQ have already obtained the legal advice concerning the enforceability of existing employment contracts in a new company formation. That leads to one conclusion. They will "re-employ" only those people who "fit" the SQ profile, and that does not auger well for management, our existing EEO and SD frameworks, or even the senior management at AN. I can even give you the name of the legal firmS involved, and the consulting partners.

Well folks keep this burbling on - I'm away to NZ, Singapore, and Chicago for the next two weeks. By then this will have settled down.

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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 12:41 pm

Do you mean I can get it for free? if so could you give
me the url. thanks

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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 12:59 pm



Yeah it's free. I would never pay for something! Ha!

Anywhere however I get if from

Yahoo Singapore Finance. Type SIAL and then click News.


Anyone can fly, only the best Soar.
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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 1:05 pm

Singapore bidding for Air NZ stake
June 15, 2001 Posted: 3:46 PM HKT (0746 GMT)

By CNN's Grant Holloway

SYDNEY, Australia (CNN) -- The increasingly complex Asia Pacific airline ownership web spun another thread Friday, with Singapore Airlines indicating it was a player for a controlling stake in the embattled Air New Zealand.

This puts Singapore in a head-to-head tussle with Australia's biggest airline Qantas Airways.

On Friday Qantas outlined a proposal to Air New Zealand whereby it took a major slice of the Kiwi operator and the Air NZ subsidiary Ansett is sold to Singapore.

Singapore Airlines owns 25 percent of Air NZ's shares and investment company Brierley Investments holds 30 percent.

Brierley however is keen to exit the stake, while Singapore has previously expressed an interest in controlling Ansett, Australia's number two airline after Qantas.

Focus on partnership
Qantas chief executive Geoff Dixon said Thursday the airline was "particularly focused on the opportunity to establish a partnership with Air New Zealand which would strengthen the international competitiveness of both airlines."

"We are aggressively pursuing wide-ranging bilateral and global alliance arrangements with our cornerstone investor, British Airways, and other oneworld partners," Dixon said.

But statements by Singapore Airlines chief Cheong Choong Koong have muddied the picture.

Cheong told The Australian newspaper Singapore was prepared to take an increased stake in Air New Zealand and inject the necessary capital to repair the airline's balance sheet.

Air New Zealand is under considerable market pressure, with a full year loss of as much as $200 million looming -- Ansett is losing up to $2.5 million a week -- and fleet upgrade costs of around $1 billion overhanging the books.

Seeking approval to lift stake
Singapore Airlines is now seeking New Zealand Government approval to lift its Air New Zealand stake above the 25 per cent limit imposed on all non-New Zealand investors in the company.

The move, if approved, would make it much harder for Qantas to buy a controlling stake in Air New Zealand.

Singapore Airlines executives are to meet New Zealand's Prime Minister Helen Clark next week to lobby for the lifting of the ownership limit
© 2001 Cable News Network LP, LLLP.

Anyone can fly, only the best Soar.
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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 1:41 pm

From this morning (Sat) NZ Heraald:

Hush after Sydney air talks

15.06.2001 By DANIEL RIORDAN aviation writer
Air New Zealand and Qantas Airways are staying tight-lipped after meeting yesterday in Sydney.

Qantas had been expected to present more details of its planned buy-in of Air NZ to that airline's independent directors. But spokesmen for the two airlines said last night that they did not intend to discuss the nature of their negotiations ahead of Air NZ's board meeting next Monday.

Air NZ's independent directors also met representatives of 25 per cent shareholder Singapore Airlines and 30 per cent owner Brierley Investments.

The Qantas proposal is expected to be one of several options before the full Air NZ board when it meets on Monday. Investment bank Salomon Smith Barney has been preparing a report examining various ownership and funding options, although an Air NZ spokesman last night declined to confirm whether the board meeting, set down for Monday and Tuesday, would consider either the Qantas proposal or the report from the investment bank.

Another option for Air NZ is to ask the Government to relax its ownership restrictions so Singapore Airlines can lift its stake to 40 per cent and lead a major recapitalisation.

The second option is for a Star Alliance solution, under which another Star Alliance member - probably United Airlines - would take a 10 per cent stake in Air NZ.

Foreign airlines are allowed to hold a combined 35 per cent stake in the company.

Importantly, this option would keep Air NZ within the global Star Alliance and ensure international competition was preserved. If Air New Zealand leaves the alliance it will be hit with a $US25 million ($60 million) exit fee and other penalties.

United Airlines is understood to have been crunching numbers to see if it makes financial sense for it to take a stake in Air NZ - something it has long been interested in.

There would be many synergies between the two carriers. Star regards the transpacific route, to New Zealand and through Australia up to East Asia, as vital parts of its network.

The US and New Zealand have an open-skies policy, and Air NZ and United have successfully sought immunity from American anti-trust laws which prevented the two airlines discussing even basic issues.

Without the anti-trust immunity, the two airlines could establish a simple code share, but could not discuss what time of day or size of aircraft they might use to make the most of cooperation.

However, it may take several months to get the same anti-trust immunity with the whole Air NZ group, including Ansett.

Industry sources suggested that United representatives will be in Auckland next week at the time of the Air NZ board meeting, although United could not be reached last night for comment.

Meanwhile, Qantas chief executive Geoff Dixon said Qantas was looking at starting a discount international airline, with the help of its Oneworld alliance partners, to fly to markets from which Qantas, in its current form, was unable to generate "an acceptable return."

Commentators said those markets do not include New Zealand.

Air NZ chief executive Gary Toomey said troubled subsidiary Ansett would not be economically viable over the long term unless it increased its 41 per cent market share.


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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 2:11 pm

Just when you think SQ has got Ansett in the bag
now comes another twist, from this mornings Mel
Herald Sun:

SIA offer for Air NZ may be grounded

SINGAPORE Airlines' attempt to hijack the proposed merger of Qantas with Air New Zealand could crash into regulatory trouble on both sides of the Tasman.

Government and aviation officials last night signalled that Singapore Airlines' offer was unlikely to win approval from either the Australian or New Zealand governments.
They said the move would tilt airline involvement in the Southwest Pacific region too much in Singapore Airlines' favour.

The plan the airline has put forward involves Singapore Airlines increasing its 25 per cent stake in Air New Zealand.

SIA would also buy from Air NZ an interest in the Kiwi carrier's troubled Australian subsidiary Ansett.

But such a move would allow Singapore Airlines to dominate the regional market, giving it a financial foothold in three major carriers with landing rights in both Australia and New Zealand.

Qantas instead wants up to a 49 stake in Air NZ in a scheme in which it would buy SIA's 25 per cent stake in Air NZ and most of Brierley Investments' 30 per cent stake. Ansett would be sold to Singapore Airlines.

The secretary-general of the Australasian chapter of the International Air Cargo Association, Peter Lawson-Hanscombe, said last night that it would not be a good idea for Singapore Airlines to exist as a dual force in Air NZ or Ansett because of the threat that posed to existing landing rights and agreements.

A more natural fit would be for Qantas to take up a stake in Air NZ.

"If that deal goes ahead, a Singapore Airlines-revived Ansett would be in a position to provide a competitive edge in regional aviation," Mr Lawson-Hanscombe said.

Meanwhile in Canberra and Auckland last night officials said that the Singapore Airlines proposal was likely to be forced down by New Zealand's Monopoly Commission.

Australia's Foreign Investment Review Board and the Australian Competition and Consumer Commission were unlikely to approve any part sell-off of Ansett to Singapore Airlines.

The preferred Australian position would be for a new Singapore-owned Ansett to compete against the proposed Qantas-Air NZ partnership for cross Tasman traffic, allowing Ansett also to re-enter New Zealand as second domestic carrier.

A decision on the structure of future airline operations in the region is tipped to emerge in days.

Air NZ directors will meet on Monday to consider the Qantas and Singapore Airline proposals, following separate talks some had with Qantas officials and Singapore Airlines chief executive, Dr Cheong Choong Kong, in Sydney on Thursday.

The New Zealand Government yesterday revealed that it had sought advice from merchant bank Cameron and Co to advise on future ownership options for the national carrier.

Dr Cheong said the serious problems faced by Air NZ and in particular Ansett needed to be addressed.

"We can help by taking a stake in Ansett but would have to be persuaded why we should give up our stake in Air New Zealand."

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RE: Ansett/ANZ/QF/SQ Part 2

Fri Jun 15, 2001 2:23 pm

as ive said previously it is SO unlikely that United will get involved-just because they are in star doesnt mean to say they want anz and do people really think that SQ will give any control to anyone else after it gets its mits on ansett and anz?

I doubt it..united are busy tied up with us airways-that shows were they are focussing their attentions, they also are ploughing in money hopefully to us, if the deal falls down they wont be in a position to commit as they will have to restructe-a lot depends on them buying us airways.

Also i think SQ ownership of ansett and anz wont go down well with the nz government, they would much rather that no foregin company owns a majority of anz, also I think that this is worse for competition in the south pacific than sq buying ansett with QF getting part of anz.

I think that SQ owning ansett and increasing their stake in anz will simply lead qantas into closer ties with BA/AA with BA increasing their stake. There is nothing more repugant to one world than SQ owning ansett and anz and qantas being beaten(apart from a lufthansa and virgin deal) and since SQ owns 49% of virgin you can bet your bottom dollar that virgin blue and ansett would be intergrated and would simply lead to qantas (with help from BA) seeking to further their grip as they will not like the idea of the star alliance getting one over them.

Its bad enough anz owing ansett in their eyes, SQ owning both would create a very explosive atmosphere, though I would still win my bet which is that ANZ will be further controlled by other airlines within the next 18 months!
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RE: Ansett/ANZ/QF/SQ Part 2

Sat Jun 16, 2001 1:46 am

Some points:
NZ no longer fly to anywhere out of BNE except N.Z. The BNE "hub" was dismantled as an unmitigated failure. There is a hell of a lot more to dismantle in AN than just the top tier. Although it would mean Management/Corporate reshuffle number 6 in 2 years, at least this time it's for the right reasons, be they painful or not. The inner workings of AN have been gutted and stripped systematically by NZ - in fact it's about the only thing with any purpose they've done since they've had full control. Accounting/Finance/Treasury has almost gone, IT is non existent in Oz, Engineering has gone etc etc. Anyone who takes AN on, has one hell of a rebuild. The biggest rebuild of all though will be needed for the worker bees. AN has gone from a company with an open door policy at all levels with open, frank discussions and receptive ears for suggestions/ideas to a "don't rock the boat, sit down and shut up" mentality. The workers are kept in the dark - internal communication is almost non existent. Management are bunkered, too scared to do anything lest they be reshuffled. Many junior management levels have been filled from outside not only AN, but the airline industry itself, with the obvious lack of knowledge apparent in many respects. While in many ways fresh blood is a good idea, this is one biz where some positions just simply have to be filled from within. All you need to do to get a position is answer 5 psychologically related questions 100% correctly with the right "buzzwords" used - past experience/knowledge is irrelevant, let alone technical skills! The resultant attitude from more experienced staff that are now forced to sit and explain things & do thier work to/for their immediate superior can be left to your imagination. How an extremely busy port like SYD Domestic terminal (as one example) can appoint (originally) 90% of it's duty team leaders from outside the airline industry is just mind boggling to say the least. This is one position that needs experience and exposure to the product and operating environment at hand. (And for the record - most of the outsiders lasted little more than 4 months, causing more disruption.)
It's not just a balance sheet that needs resurrection at AN - it's basically a rebuild from ground zero and *that* is the truly daunting task at hand.
Regardless of who get's it, it's a done deal that NZ has lost "control" of AN, no matter how much, if any, numerary stake they can keep of it.
If SQ thinks it can take on the rather dormant & seemingly hibernating TWU, Flight Attendants and Pilot's unions, then all power to them. All 3 of those unions though are mighty powerful if they want to be and can indeed cause much angst and grief should they be pushed the wrong way. That some areas need a drastic overhaul in the way they do business is a given - but one can't get that message through to current management due to the "yes" people in lower/middle management and the "don't rock the boat" directives to worker bees.
Management levels are at the highest they've ever been in AN - there's one way to save big bucks immediately as no doubt SQ have seen.
Cheers. Al.
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RE: Ansett/ANZ/QF/SQ Part 2

Sat Jun 16, 2001 3:57 am

This deal isn't looking good for Qantas at all.
Why isn't there ever a chance for Qantas to expand like everybody else?
I hope Singapore Airlines doesn't take Ansett AT ALL, and I hope everything stays the way it is. It is already very good (in Qantas' eyes).
Singapore Airlines obviously wants to defeat Qantas with its Australian right hand (Ansett).
Qantas is obviously disliked by both Singapore Airlines and Ansett, so I'm sure they have been planning to join for a long time.

The spirit of Australia
Spirit of Australia
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RE: Ansett/ANZ/QF/SQ Part 2

Sat Jun 16, 2001 10:47 am

AI wrote:
......"AN has gone from a company with an open door policy at all levels with open, frank discussions and receptive ears for suggestions/ideas to a "don't rock the boat, sit down and shut up" mentality. The workers are kept in the dark - internal communication is almost non existent."

Ain't that the truth, but not too much longer me thinks.

I think you had better get used to the idea of Ansett
being managed other than ANZ, maybe what we all
have not thought of is if SQ refuses to sell its stake
in ANZ or Briealy will not let go unless they get double
the price for their shares, if this happens there will be
a real dilema.

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RE: Ansett/ANZ/QF/SQ Part 2

Sun Jun 17, 2001 3:01 am

Virgin Blue announces $500,000 trading profit
Australia's fledgling discount airline Virgin Blue has announced a trading profit of more than $500,000 for its first seven months of operation.

The net result, however, will be a loss of $11 million.

The trading profit is from figures since Virgin Blue's startup in August until March this year.

Virgin Blue's chief executive, Brett Godfrey, says it is an exceptional result for an airline still in its startup phase, given the high cost of fuel and low currency value.

He says the results reflect the board's decision to write off the costs associated with the period before Virgin Blue began operations, and its chairman, Richard Branson, had not expected the airline to be profitable within three to four years of starting up.

He says the result will entrench Virgin's position in the market as an alternative airline.

Virgin Blue has also announced it will expand flights to the route between Sydney and Melbourne, beginning next month.

The airline's first flight from Sydney to Coolangatta left this morning.

Last month fellow discount airline Impulse Airlines, was taken over by Qantas.

Low fares

Virgin Blue says its airfares will not be rising, after it made a profit in its first seven months of operations.

Mr Godfrey says Virgin can afford to hang on to fares under the $100 mark, but cannot commit to fares as low as $33.

"We think we can make a decent profit and still hang on to low fares, if we've done it in our startup phase you can rest assured we can do it when we mature and as the new routes that we bring online actually start to develop we can afford to keep the fares low and still make a decent return for our shareholder Richard Branson," he said.

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RE: Ansett/ANZ/QF/SQ Part 2

Sun Jun 17, 2001 3:10 am

The diamond pattern for Virgin Blue is completed.

Sydney to Melbourne
DJ804# 6:45am 8:10am
DJ808 8:30am 9:55am
DJ822 12:20pm 1:45pm
DJ832 4:40pm 6:05pm
DJ846 8:30pm 9:55pm

Melbourne to Sydney
DJ805 6:35am 8:00am
DJ815 10:25am 11:50am
DJ827 2:20pm 3:45pm
DJ841 6:35pm 8:00pm
DJ847# 8:30pm 9:55pm

Some nice $66.00 fares in there but also some $137.00 fares as well, must be
confident that they can fill those planes without trying to offer a cheap
Like a Sunday afternoon fares of $137.00 compared to the morning of $66.00
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RE: Ansett/ANZ/QF/SQ Part 2

Sun Jun 17, 2001 3:22 am

An interesting aspect of this issue is the complete silence of BA.
As a significant shareholder of QF they would have been in on the bid for ANZ, but publicly - not a peek from them!
Looks like the Battle of the Pacific Airways has still a few twists and turns in it before we'll see a resolution.
And my bet is that the immediate resolution will not be the final, long term one either.

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RE: Ansett/ANZ/QF/SQ Part 2

Sun Jun 17, 2001 3:40 am

Yes that is quite true.
Why haven't British Airways said anything about it?
They really should... But I'm sure BA doesn't want anything to do with it.

Spirit of Australia
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RE: Ansett/ANZ/QF/SQ Part 2

Sun Jun 17, 2001 10:34 pm

does anyone in this forum really believe that QF is only interested in developing a 'partnership' and helping out new zealand's embattled national carrier? this is business. QF and SQ are both only interested in consolidating their individual dominance in the global and regional aviation markets. i sense a degree of prejudice among some contributors to this forum about the "little singaporean" with their suspicious business practices. wake up....there is plenty of secrecy and wheeling and dealing on all fronts be they australians or singaporeans or whatever. why else would there be all this speculation about the outcome of this recent shake up in the australasian aviation industry. it would all be discussed nicely, openly and transparent right? NOT!!!!!
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RE: Ansett/ANZ/QF/SQ Part 2

Mon Jun 18, 2001 12:05 am

Cushing counters market criticism
17 June 2001

Sir Selwyn Cushing has defended his actions as former chairman of Air New Zealand and Brierley Investments as marketplace criticism mounts at Brierley's role in the woes facing the national carrier.
Breaking a self-imposed silence while sensitive airline discussions continue at highest levels, Sir Selwyn said he called a meeting of the Air NZ board within 24 hours of hearing proposals involving Qantas buying into Air NZ.

"Immediately after getting a phone call from Geoff Dixon (Qantas chief executive) I called a QC to get advice on what I should do," said Sir Selwyn. "Not that I didn't know, but I wanted it in writing."

Sir Selwyn was advised to step aside as Air NZ and Brierley (BIL) chairman and take no part in discussions on the future shape of the

company. Those calls were made on Thursday May 24, and the Air NZ board meeting was held in Auckland the next day when it received formal notification of the tentative proposals. On Monday, Dixon flew to Wellington for discussions and an announcement was made to the markets on Tuesday morning.

Sir Selwyn said a few hours before Dixon's phone call he heard rumours from Air NZ staff that something was up. But that was the first he knew of it, and beyond that clarification Sir Selwyn declined further comment.

Even Brierley insiders admit the latest plans to reshape Australasian aviation is one instance where the interests of BIL and Air NZ fail to merge. And until now, Sir Selwyn has not revealed his part, if any, in the Qantas proposal. But suspicion is that his hand was behind the tentative proposal as BIL desperately tries to finally extricate itself from Air NZ in part to strengthen its own financial position.

Proposals due for discussion by the Air NZ board tomorrow could involve BIL selling its Air NZ "A" stake to fierce competitor Qantas, the Australian national air carrier.

Proposals could also involve Singapore Airlines buying Ansett Australia from Air NZ. And while Ansett is the immediate cause of Air NZ's capital woes, BIL still believes the Australian airline is critical to the future success of Air NZ as a regional and global airline.

"So while the Qantas/SIA proposal would help BIL in its wish to sell its A shares, there is a potential downside for Air NZ," said a BIL insider.

Market sources believe, however, that the latest airline restructure proposal is not the only instance of where the interests of BIL and Air NZ have overlapped.

Brierley has been a cornerstone shareholder of Air NZ since 1989 when it secured a 65% stake as part of a Qantas consortium. Then-BIL chairman Bob Matthew also became chairman of Air NZ, a dual chairmanship which Sir Selwyn Cushing assumed in 1998.

Sir Selwyn has also been executive chairman of both companies. "Both Sir Selwyn and Bob Matthew have been wearing two hats at Air NZ for the best part of a decade," said one market source.

"More and more people are asking just which hat they have been wearing when making decisions affecting the future of each company.

"Australian commentators have been quite scathing, and say BIL is selling Air NZ down the river."

BIL chief executive Greg Terry said it appeared the apparent instigator of the latest moves was ABN Amro in Asia, which was advisor to Singapore Airlines when it bought a 17% stake in Air NZ B shares last year.

BIL critics are also sceptical of the Air NZ line that it had no option in late 1999 but to buy Ansett Australia at a toppish price.

"Before that purchase, Air NZ's net borrowings were $1.1 billion - they are now around $3.3b and therein lies the problem for our national carrier," said an analyst. "Air NZ paid too much for Ansett when it could have sat down and worked out a deal with SIA."

But at the back of everyone's mind was cornerstone shareholder BIL's stake in Air NZ B shares, which BIL had been holding out to SIA as second prize, he said.

It was a stake which SIA took and which it may now be prepared to relinquish to Qantas for what many believe is SIA's long term goal, Ansett Australia.

And that, according to BIL insiders, is an indication Air NZ got it right when it bought Ansett Australia. "If Ansett is such a dog, then why is Singapore Airlines still pursuing it?," asked a source close to Sir Selwyn.

If Terry is right and the proposal was hatched by merchant bankers acting for SIA - and despite SIA's earlier denial it was in any way involved in the Qantas proposal - then that is more grist for the Brierley position.

Revenue and cost savings of $350 million were due from Ansett. "The only question is whether Air NZ can still afford Ansett."

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RE: Ansett/ANZ/QF/SQ Part 2

Mon Jun 18, 2001 4:13 am

Qantas directors to face charges

Creditors owed millions of dollars when Qantas New Zealand went under are welcoming a decison to charge seven company directors.

The seven men - including some of the country's top businessmen - have been charged for failing to file financial accounts.

If found guilty, they could face fines of up to half-a-million dollars, however their lawyer believes the case will never get to court.

Qantas New Zealand collapsed in April this year, four months after the deadline to file company's financial statements.

A representative of almost 20 creditors, Bernard Montgomerie, says the decision to proceed with a court case is another reason for creditors to believe the people in charge of Qantas New Zealand knew the company was in bad shape but did not let on they knew so.

He says they should have done so.

However a lawyer for the company's directors indicates that they will vigoriously defend the charges, and says he expects the charges will be withdrawn.

A court hearing is set down for the end of July.

Published on Jun 17, 2001,ONE News sourced from TVNZ, RNZ, Reuters

It is amazing what can be accomplised when nobody takes the credit
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RE: Ansett/ANZ/QF/SQ Part 2

Mon Jun 18, 2001 4:44 am

Cameron to advise on Air NZ deal

by Giles Parkinson
Posted 12:40 PM EST, Jun-15-2001

SYDNEY — The New Zealand government has retained merchant bank Cameron and Co. to advise it on the future ownership of national carrier Air New Zealand Ltd.

Finance Minister Michael Cullen said June 15 the Wellington-based bank would prepare a report, due early this week, on the impact of lifting the foreign ownership level of Air NZ and of injecting public money into the debt-laden airline.

The appointment came as the airline's independent directors met to consider rival proposals from Australia's Qantas Airways Ltd. and Singapore Airlines Ltd.

Qantas wants to buy the 25% share in Air NZ held by Singapore Airlines, or SIA, and most of the 30% stake held by Brierley Investments Ltd. It proposes that Air NZ's Australian domestic airline, Ansett, should be sold to SIA.

However, SIA chief executive Cheong Choong Kong said Thursday he has yet to be convinced that it should sell its Air NZ stake and had made its own proposal to lift its stake in Air NZ. SIA would, however, like to have a "large stake" in Ansett.

An SIA spokesman said later from Singapore that no formal proposal had been made, although Cheong would hold further meetings with Air NZ and government ministers in Wellington this week.

The unprofitable Ansett needs an estimated A$4 billion refit, and Air NZ does not have the capacity to fund that on its own.

All parties involved in the negotiations met Thursday in Sydney: AirNZ chief executive Gary Toomey, Qantas chief executive Geoff Dixon, Brierley chief executive Greg Terry, SIA's Cheung, and Jim Farmer, the head of Air NZ's independent committee.

Qantas is being advised by Merrill Lynch & Co., and Air NZ is being advised by Salomon Smith Barney.

Air NZ's board is expected to meet Monday and Tuesday to consider the recommendations made by the committee of independent directors.

Any deal will require the approval of the New Zealand and Australian governments, as well as antitrust authorities.

A New Zealand Treasury spokesman told the New Zealand Press Association that the Cameron and Co. report would be wide-ranging, covering Air NZ's financial position as well as an overview of the industry.

Reports Friday in the New Zealand Herald suggested that United Airlines Inc., a member with Air NZ of the Star Alliance, was considering taking a 10% stake in the airline. The paper said United representatives will be in Auckland next week at the time of the Air NZ board meeting.

It is amazing what can be accomplised when nobody takes the credit
Posts: 834
Joined: Tue Jan 18, 2000 10:28 am

RE: Ansett/ANZ/QF/SQ Part 2

Mon Jun 18, 2001 10:45 am

Business News

Jim Farmer

Air NZ's directors ponder ownership options

18.06.2001 By FRAN O'SULLIVAN assistant editor
Air New Zealand's board begins a series of marathon meetings today to "get an early resolution" to the airline's future ownership.

A report by investment bankers Salomon Smith Barney, canvassing the options, will be presented when directors gather at the company's Auckland headquarters this morning for the start of a two-day board meeting.

The options will include Singapore Airlines increasing its stake in Air New Zealand to 35 per cent and taking an 80 per cent slice of Ansett Australia.

The Singapore move will require the Government to change foreign ownership restrictions for the national carrier.

Air New Zealand's financial situation has been exaggerated, but it still requires a major balance sheet restructuring to fund a $3 billion-$5 billion fleet renewal programme for Ansett Australia.

Other options are recapitalising Air New Zealand based on its present structure, or the proposed Qantas Airways bid. No proposal involving United Airlines has landed.

Air New Zealand deputy chairman Jim Farmer, who leads the independent directors charged with resolving the airline's recapitalisation, said: "Just how the week pans out, goodness only knows. But I hope before the end of it, we will have some clear direction."

So far there is little common ground between the rival players.

Qantas chief executive Geoff Dixon refined his airline's proposal at a meeting with Air New Zealand's independent directors in Sydney last week. That proposal relies on Qantas acquiring Singapore Airlines' 25 per cent stake along with Brierley Investments' 30 per cent holding. In return, Singapore Airlines would gain control of Ansett Australia from Air New Zealand.

The negotiations are complicated as Brierley Investments has said it will not sell its Air New Zealand stake at present share prices, nor will it invest further.

Singapore Airlines head Cheong Choong Kong has also said he would rather increase Singapore's stake in Air New Zealand than sell to the Australian carrier. Dr Cheong has sought a meeting with the New Zealand Government on Wednesday.

As an existing Air New Zealand shareholder operating alongside Air New Zealand in the Star Alliance, Singapore Airlines has demonstrated commitment to New Zealand.

Dr Farmer acknowledged the tough challenge in front of the independent directors.

"It's going to depend on positioning by the various parties and at the end of the day how we assess the best interests of the airline and the national interest."

Once the independent directors have settled on their preferred option, Air New Zealand will put a firm proposal to the Government.

Qantas has moved to meet the Government's concerns by fleshing out how it would deal with outstanding issues such as the structure of the A and B shares which govern Air New Zealand's ownership, and overall limitations on foreign ownership and competition matters.

Under Qantas' plan, Ansett International would operate on the transtasman route and domestic competition within New Zealand would be preserved.

The Treasury has commissioned a report from Wellington merchant bank Cameron & Co on various recapitalisation scenarios in preparation for this week's negotiations.

One of the scenarios includes the Government investing in an Air New Zealand capital notes issue, but that option is seen as a fallback measure.

The Cameron report will also examine the implications of raising the cap which restricts foreign ownership of the national flag carrier to 49 per cent and total foreign airline ownership to 35 per cent.

A report by UBS Warburg estimates Air New Zealand will report a $119 million loss for the June 2001 year.


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Joined: Sun Mar 25, 2001 4:32 am

RE: Ansett/ANZ/QF/SQ Part 2

Mon Jun 18, 2001 11:53 am

According to a report posted here somewhere, both
govts would not agree to to SIA having that much
control in both NZ and Aust, geeze SIA is not shy
coming forward, 80% of Ansett plus 35% of ANZ,
Christ, Qantas would have pups if that happened,
what a bloody mess this is, the possiblitys are endless,
Brierly won't sell or SIA won't sell, surely about the
easyest way would for SIA to buy Ansett and get out
of ANZ, but myself I'm expecting any possibility.


Air Taiwan
Posts: 1498
Joined: Fri Dec 03, 1999 3:06 pm

RE: Ansett/ANZ/QF/SQ Part 2

Mon Jun 18, 2001 12:12 pm

Wow~~ SIA want's 80% AN and 35% NZ!! I thought they only wanted like 51% of AN and 25% of NZ...

can i say that they're greedy?
Posts: 1242
Joined: Thu Mar 15, 2001 2:55 pm

RE: Ansett/ANZ/QF/SQ Part 2

Mon Jun 18, 2001 2:42 pm

Air Taiwan,
I wouldn't say it would be Singapore Airlines that is greedy, but you might say that they don't want to be seen as the "bad guy" here. Now that everybody has seen the deal, Singapore Airlines wants to back out of what it did. Face it, competitors are competitors and Singapore Airlines will always hate Qantas.
Why would Singapore Airlines be assisting Qantas Airways in any way? Unless in the long term SQ got some sort of benefit on it.

This is just my opinion though.
Spirit of Australia
Air Taiwan
Posts: 1498
Joined: Fri Dec 03, 1999 3:06 pm

RE: Ansett/ANZ/QF/SQ Part 2

Mon Jun 18, 2001 2:50 pm

Well SIA doesn't "hate" Qantas. In fact, they wanted QF a while back when the OZ government sold QF shares. And everyone knows, BA got the 25% of QF... leaving SIA behind... So that's why SQ now wants AN...

I say, SQ and AN make a good pair and with NZ they make a perfect trio against BA/QF.

I'm in support of AN! It's been suffering long enough...

Posts: 181
Joined: Sat Dec 30, 2000 5:09 pm

RE: Ansett/ANZ/QF/SQ Part 2

Mon Jun 18, 2001 4:11 pm

i think sq wants a large chunk of an 'coz it knows it has to fork out a large amount of capital to give ailing an a big boost. i just flew between sydney and adelaide on an this weekend and they need to do something about their fleet. i'm a supporter of ansett but even their much loved airbus a320s looked pretty tired.
Posts: 221
Joined: Wed Aug 23, 2000 12:50 pm

RE: Ansett/ANZ/QF/SQ Part 2

Mon Jun 18, 2001 4:35 pm

I reckon anythings better than QF!
But SQ is a bonus!!

Posts: 1244
Joined: Mon Jan 08, 2001 8:11 am

RE: Ansett/ANZ/QF/SQ Part 2

Mon Jun 18, 2001 4:39 pm

In this whole saga, there are two sick patient, one more sick than the other.

SIA already has equity in ANZ, which is quite sick - being cash strapped and through its own doing, is stuck with a more sick airline - Ansett.

Frankly, a small bit of me is skeptical about the perceived-strategic significance of gaining further equities in ANZ and partial ownership of Ansett.

But leaving ANZ to the clutches of Qantas is like asking the Granny asking the big bad wolf to look after Little Riding Hood!!! Not forgetting big bad wolf has a silent partner from the other end of the Kangaroo Route!

This interesting saga continues.

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