Originally Posted by
Troo believer
The loan is being under written by the Kiwi government. Go to the market and see how you go for the same amount of capital. If it’s that expensive then find the money at a cheaper rate? What’s that? Yep no we can’t raise that capital independently. Therefore in effect it’s a subsidy.
AirNZ will indeed be going to the market for capital raising. Any money that needs to be paid back is not a subsidy, regardless of where it came from. No Govt loan will ever be “forgiven” either. It may be converted to an increased shareholding as has happened before. Either way, I see no subsidising going on that would enable AirNZ to operate any more cheaply than it already does.
I can’t tell if you’re being deliberately obtuse or you have some sort of prejudice against that airline.