Air NZ bailout
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Air NZ bailout
I read with interest this mornings paper which states 'Govt may bail out Air NZ'.
Basically, the NZ govt doesn't like the idea of SIA lifting its stake and is equally suspicious of QF.
The obvious solution they[/B]see is to pump money they don't have into the airline so Air NZ has a chance of turning Ansett around without going down the plug itself.
Not surprisingly the business sector is a little surprised and believes the govt should butt out completely.
My personal opinion is that if the govt is willing to provide an interest free loan to Air NZ, they would be silly not to take it and get on with business so it can be repaid in 5 years time (date the proposed loan falls due).
I'd be interested to here what others think!
Basically, the NZ govt doesn't like the idea of SIA lifting its stake and is equally suspicious of QF.
The obvious solution they[/B]see is to pump money they don't have into the airline so Air NZ has a chance of turning Ansett around without going down the plug itself.
Not surprisingly the business sector is a little surprised and believes the govt should butt out completely.
My personal opinion is that if the govt is willing to provide an interest free loan to Air NZ, they would be silly not to take it and get on with business so it can be repaid in 5 years time (date the proposed loan falls due).
I'd be interested to here what others think!
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the pollies should never have sold
air nz in the first place,
however air nz is to blame for the situation
it is in,it wanted to beat sq to buy ansett
and paid twice as much as it should have,
i bet qantas wish they had never sold
there 20% (i think) they used to own.
:o
[ 25 August 2001: Message edited by: ZK-NSJ ]
air nz in the first place,
however air nz is to blame for the situation
it is in,it wanted to beat sq to buy ansett
and paid twice as much as it should have,
i bet qantas wish they had never sold
there 20% (i think) they used to own.
:o[ 25 August 2001: Message edited by: ZK-NSJ ]
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frickin annoyed!
this damn govt is OK to provide a multi-million $ interest free loan to keep Air NZ afloat.......but axes the Skyhawks???
Go figure whose interests they have at heart.....not to mention the $75mil per year for maori television.......Ar$e.
this damn govt is OK to provide a multi-million $ interest free loan to keep Air NZ afloat.......but axes the Skyhawks???
Go figure whose interests they have at heart.....not to mention the $75mil per year for maori television.......Ar$e.
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I think that the bail out is a good thing. Ansett would be such an easy thing to turn around if the right people were in the right places. Its a hell of a lot better than Singapore buying more of Air NZ, then later on we see Air NZ's brand name go altogether. Who wants Singapore domestic flights in NZ? Seems a bit stupid.
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Having a quick scan of the NZ Herald I could'nt find the article refered to. If the government is willing to give NZ an interest free loan then what other marginal industries who have stretched themselves too far are going to put up their hands for a bit of interest free money? The amount required would be substantial and I would expect the conditions put on the loan would be interesting. I did find this quote from the head of the independent directors. "What we cannot accept is the unfounded suggestion that Air New Zealand's proposal has been forced on the Government because Air New Zealand was poorly run by its board and management.' It would appear that the board members of Air NZ are getting a bit twitchy ( cause lets face it their positions are in jeopardy if this goes badly) and I expect the next week will be a long one for them.
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The article referred to is splattered all over the 'Sunday Star Times'.
Various people have there say one way or the other in the paper.
It is still too close to call at this stage.
Various people have there say one way or the other in the paper.
It is still too close to call at this stage.
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sound right to me from inside AN.I know I will offend a few, but you kwis must get over this anti Aussi sentament half the reason you bought us ,I can think of any other and Im doubly sure you cant.
All those wasted years as an fo in a dud airline man! god is a women.
All those wasted years as an fo in a dud airline man! god is a women.
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Sunday August 26, 9:50 AM
New Zealand Mulling NZ$500M Cash Bailout Of Air NZ-Report
WELLINGTON (Dow Jones)
--The New Zealand government is considering an NZ$500-million bailout of Air New Zealand as an alternative to greater foreign ownership of the carrier, according to a report in the Sunday Star Times newspaper.
Under the proposal, the government would subscribe to a NZ$500-million capital notes issue, which the airline would repay in five years, the newspaper said in a front-page article that cited unnamed sources.
Air New Zealand also would carry out a one-for-five rights issue at the heavily discounted price of NZ$0.50 a share, raising NZ$380 million.
"It's no forgone conclusion such an option will win the day, but it seems to be gaining strength," a source told the newspaper.
Simon Botherway, a senior analyst at Arcus Investments, told the newspaper the government would be unwise to become more involved in the airline business.
"You are putting public money at risk in something which banks certainly won't look at. In any case, the market is able and willing to provide the money needed by Air New Zealand," he said.
-By Stephen Wright, Dow Jones Newswires; 644-471-5990; [email protected]
New Zealand Mulling NZ$500M Cash Bailout Of Air NZ-Report
WELLINGTON (Dow Jones)
--The New Zealand government is considering an NZ$500-million bailout of Air New Zealand as an alternative to greater foreign ownership of the carrier, according to a report in the Sunday Star Times newspaper.
Under the proposal, the government would subscribe to a NZ$500-million capital notes issue, which the airline would repay in five years, the newspaper said in a front-page article that cited unnamed sources.
Air New Zealand also would carry out a one-for-five rights issue at the heavily discounted price of NZ$0.50 a share, raising NZ$380 million.
"It's no forgone conclusion such an option will win the day, but it seems to be gaining strength," a source told the newspaper.
Simon Botherway, a senior analyst at Arcus Investments, told the newspaper the government would be unwise to become more involved in the airline business.
"You are putting public money at risk in something which banks certainly won't look at. In any case, the market is able and willing to provide the money needed by Air New Zealand," he said.
-By Stephen Wright, Dow Jones Newswires; 644-471-5990; [email protected]
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So where was the NZ Government when AN/QFNZ was in trouble or any other struggling NZ business for that matter (or maybe the Airforce). What does the Kiwi tax payer get for their money in lieu of interest? Cheese, crackers and cola at a premium fare with, in the interests of not loosing their money completely, no real competition allowed? At least back in the early 80's Eagle were at least some form of competition.
[ 26 August 2001: Message edited by: Pferdsheise ]
[ 26 August 2001: Message edited by: Pferdsheise ]
Evertonian
G R E A T !
This'll delay the inevitable by 6 months.
Might as well let AN go to the receivers next week & be done with it! Then we can all get some sleep!
This'll delay the inevitable by 6 months.
Might as well let AN go to the receivers next week & be done with it! Then we can all get some sleep!
This should be a "bug hut" with the NZ voters; kick in taxpayers money to bail out a company controlled by foreigners (SQ & BIL). No military strike capability, but Helen bales out the big end of a south-east Asian city.
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Capital notes loan is the only smart thing to have come out of Helengrad.
I can grit my teeth and watch NZ's hq being packed off to Melbourne, I'll be ******ed if I'll watch the dividends go to Changi, and Kiwi jobs with it.
I don't mind my Kiwi taxes propping up Australian jobs, but I'll be dark if a New Zealand government hands over Air New Zealand to a foreign government.
I'll be even more dark if Helen hands Air NZ a cheque without classifying Brierly as a foreign company and requistioning the shareholding its held in breach of OIC regulations for years.
Brierly Investments tried to suck Air New Zealand dry, and when they couldn't they bought Ansett to cripple the balance sheet, in the hope that such a dire situation would only be resolved by a buyout from Cushing's Singaporean employers. Nothing like a loss leader to force a hand or win tax credits. Just ask Ansett New Zealand.
Haven't you wondered why a few seats have been vacated on the SQ board and why Selwyn's been polishing his ar*se.
I can grit my teeth and watch NZ's hq being packed off to Melbourne, I'll be ******ed if I'll watch the dividends go to Changi, and Kiwi jobs with it.
I don't mind my Kiwi taxes propping up Australian jobs, but I'll be dark if a New Zealand government hands over Air New Zealand to a foreign government.
I'll be even more dark if Helen hands Air NZ a cheque without classifying Brierly as a foreign company and requistioning the shareholding its held in breach of OIC regulations for years.
Brierly Investments tried to suck Air New Zealand dry, and when they couldn't they bought Ansett to cripple the balance sheet, in the hope that such a dire situation would only be resolved by a buyout from Cushing's Singaporean employers. Nothing like a loss leader to force a hand or win tax credits. Just ask Ansett New Zealand.
Haven't you wondered why a few seats have been vacated on the SQ board and why Selwyn's been polishing his ar*se.
One News reported yesterday that the bailout is a no go.
Clark rules out govt cash for Air NZ
Apparently final decision in a week.
Clark rules out govt cash for Air NZ
Apparently final decision in a week.
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By Jim Baynes, AAP aviation writer
SYDNEY, Aug 28 AAP - Singapore Airlines will be allowed to
bail-out Air New Zealand Ansett, but the New Zealand government may
only allow a stop-gap 35 per cent stake, warn analysts.
Singapore Airlines wants to raise its 25 per cent stake in Air
NZ Ltd to 49 per cent, but to do so it needs a relaxing of New
Zealand's foreign ownership restrictions.
A decision is expected by next Tuesday, when Air NZ reports an
estimated $A160 million full year loss. That comes at a time when
stricken subsidiary Ansett needs to start its $4 billion fleet
upgrade.
Australian analysts believe there are no other feasible option
to save The Flying Koru and Ansett than for the NZ government to
agree to the lifeline from the majority Singapore Government-owned
carrier.
For a while it appeared there were a number of options to secure
Air NZ's medium-term future.
Australia's Qantas Airways Ltd, which is desperate to grow in
the region, offered to buy Singapore Airline's 25 per cent in Air
NZ, with Ansett then sold to Singapore Airlines.
But the cashed-up Singaporean has said it will not sell its
stake, nor buy Ansett, prompting speculation the Australian
government would pressure its Singapore counterpart to make the
airline divest the stake.
Another reported option, involving a $A400 million bail-out loan
from New Zealand taxpayers through a capital note issue, was hit on
the head yesterday by New Zealand Prime Minister Helen Clark.
Ms Clark said the government had "no desire to be involved in
the commercial affairs of Air NZ" - a remark which some analysts
interpret as a clear thumbs-up to the Singapore deal.
"Yes (the cap will be lifted). In a maximum of one week," said
one analyst, who asked not to be named.
"The biggest surprise would be if Qantas succeeds. Because that
would mean that the Australian Government has managed to apply
pressure on the Singapore Government to put pressure on Singapore
Airlines to give up its stake."
Dicksons Ltd analyst Michael Heffernan said there was no chance
of Singapore Airlines being denied in its bid to lift its stake.
"Of course it will (go ahead). It's that or Air NZ folds," Mr
Heffernan said.
"By doing this the choke around New Zealand's neck is tightened
but they've simply got no other choice."
Mr Heffernan said that to reject Singapore Airlines's plan would
not only hurt New Zealand's national carrier, but also represent a
severing of broader economic ties between the countries.
Both analysts said the Kiwi government may compromise and allow
a 35 per cent stake, but insist this would merely be a "stop-gap"
measure for Air NZ, which is understood to require at least $A700
million to kick-start the fleet revamp.
If the New Zealand lifts the ownership restrictions, it will
also increase the pressure on Australia to unshackle Qantas from
the Qantas Sale Act, which restricts British Airways to a quarter
stake. One of the Act's provisions restricts any airline from
owning more than 25 per cent of Qantas.
However, neither analyst expect Qantas' wish to be granted for
some time, despite its recently reported slump in full-year profit.
Shares in Qantas were trading seven cents lower at $3.02 at 1500
AEST, in a softer overall market today.
AAP jwb/sh
SYDNEY, Aug 28 AAP - Singapore Airlines will be allowed to
bail-out Air New Zealand Ansett, but the New Zealand government may
only allow a stop-gap 35 per cent stake, warn analysts.
Singapore Airlines wants to raise its 25 per cent stake in Air
NZ Ltd to 49 per cent, but to do so it needs a relaxing of New
Zealand's foreign ownership restrictions.
A decision is expected by next Tuesday, when Air NZ reports an
estimated $A160 million full year loss. That comes at a time when
stricken subsidiary Ansett needs to start its $4 billion fleet
upgrade.
Australian analysts believe there are no other feasible option
to save The Flying Koru and Ansett than for the NZ government to
agree to the lifeline from the majority Singapore Government-owned
carrier.
For a while it appeared there were a number of options to secure
Air NZ's medium-term future.
Australia's Qantas Airways Ltd, which is desperate to grow in
the region, offered to buy Singapore Airline's 25 per cent in Air
NZ, with Ansett then sold to Singapore Airlines.
But the cashed-up Singaporean has said it will not sell its
stake, nor buy Ansett, prompting speculation the Australian
government would pressure its Singapore counterpart to make the
airline divest the stake.
Another reported option, involving a $A400 million bail-out loan
from New Zealand taxpayers through a capital note issue, was hit on
the head yesterday by New Zealand Prime Minister Helen Clark.
Ms Clark said the government had "no desire to be involved in
the commercial affairs of Air NZ" - a remark which some analysts
interpret as a clear thumbs-up to the Singapore deal.
"Yes (the cap will be lifted). In a maximum of one week," said
one analyst, who asked not to be named.
"The biggest surprise would be if Qantas succeeds. Because that
would mean that the Australian Government has managed to apply
pressure on the Singapore Government to put pressure on Singapore
Airlines to give up its stake."
Dicksons Ltd analyst Michael Heffernan said there was no chance
of Singapore Airlines being denied in its bid to lift its stake.
"Of course it will (go ahead). It's that or Air NZ folds," Mr
Heffernan said.
"By doing this the choke around New Zealand's neck is tightened
but they've simply got no other choice."
Mr Heffernan said that to reject Singapore Airlines's plan would
not only hurt New Zealand's national carrier, but also represent a
severing of broader economic ties between the countries.
Both analysts said the Kiwi government may compromise and allow
a 35 per cent stake, but insist this would merely be a "stop-gap"
measure for Air NZ, which is understood to require at least $A700
million to kick-start the fleet revamp.
If the New Zealand lifts the ownership restrictions, it will
also increase the pressure on Australia to unshackle Qantas from
the Qantas Sale Act, which restricts British Airways to a quarter
stake. One of the Act's provisions restricts any airline from
owning more than 25 per cent of Qantas.
However, neither analyst expect Qantas' wish to be granted for
some time, despite its recently reported slump in full-year profit.
Shares in Qantas were trading seven cents lower at $3.02 at 1500
AEST, in a softer overall market today.
AAP jwb/sh
S J
Congratulations on your post - you obviously see the issues clearly and had the guts to voice your concerns.
I hope sanity prevails when the decision is finally made.
Congratulations on your post - you obviously see the issues clearly and had the guts to voice your concerns.
I hope sanity prevails when the decision is finally made.
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I have a reasonable knowledge of the way things happen at SQ and Singapore INC (probably more than have posted so far), however my knowledge of NZ politics is limited to more of a interest rather than facts. SO, bearing that in mind, here's an unsollicited opinion. (as opposed to the word according to Balthazar)
SQ and SIA are desperate for international credibility and recognition. Buying ANZ/AN will only afford them this if the eventual alliance is both successful and popular with the respective people involved (remember ANZ is more than a few pollies in Wellington and SQ know this). They obviously have an interest in Singapore, but anybody who thinks they want to be the next world leader is illusioned. Their primary objective is a strong and successful island state that has the integrity staying power that will allow them to be around for a while yet.
This continued international and financial success can not continue if they obliterate anyone they invest in. Nationalism is (unfortunately) inherent in every international investment, and a country 24 km wide and inhabited by 2 million diverse people knows this.
SQ will be better for ANZ/AN than Qantas or any welfare payout can ever be. They will demand commercial accountability, and invest for the long term and be accutley aware of their position in the world, unlike Geoff Dixon.
Just look at Lee Hsiang Liang's reaction to the inappropriate diatribe of Stokes et al. Turn the other cheek, and then when it is obvious that their investment is wanted, throw it back in a more than appropraiate way.
SQ and SIN are not perfect, but neither are their detractors.
SQ plus ANZ/AN is a long term positive solution for everybody except SQ. I'm still not sure why they want to invest in such a bunch of nonsense.
SQ and SIA are desperate for international credibility and recognition. Buying ANZ/AN will only afford them this if the eventual alliance is both successful and popular with the respective people involved (remember ANZ is more than a few pollies in Wellington and SQ know this). They obviously have an interest in Singapore, but anybody who thinks they want to be the next world leader is illusioned. Their primary objective is a strong and successful island state that has the integrity staying power that will allow them to be around for a while yet.
This continued international and financial success can not continue if they obliterate anyone they invest in. Nationalism is (unfortunately) inherent in every international investment, and a country 24 km wide and inhabited by 2 million diverse people knows this.
SQ will be better for ANZ/AN than Qantas or any welfare payout can ever be. They will demand commercial accountability, and invest for the long term and be accutley aware of their position in the world, unlike Geoff Dixon.
Just look at Lee Hsiang Liang's reaction to the inappropriate diatribe of Stokes et al. Turn the other cheek, and then when it is obvious that their investment is wanted, throw it back in a more than appropraiate way.
SQ and SIN are not perfect, but neither are their detractors.
SQ plus ANZ/AN is a long term positive solution for everybody except SQ. I'm still not sure why they want to invest in such a bunch of nonsense.