Origin Pacific Seeking a Partner
Interesting...NZ Herald 13/12
Origin Pacific seeking a partner
13.12.2003
Origin Pacific founder Robert Inglis is looking at bringing in an outside investor to accelerate expansion of the independent airline.
Inglis, who owns the majority of the Nelson airline he founded seven years ago with business partner Nicki Smith, has commissioned KPMG to examine possible funding options for fleet expansion.
"We've always been aware that as Origin grew, that at some stage to fund its future growth we would need to bring in further capital," Inglis said.
"We are going through that process at the moment - we are being advised by KPMG."
Inglis has ruled out a public listing at this stage, but said he could "never say never".
He said Origin was looking for "a partner, not just money" and it was likely to be a similar business.
"We want more than money, we want parties who will bring experience or complementary businesses."
He would not be drawn on whether another airline was likely to invest.
Inglis said the airline was seven years old and was well through the establishment phase.
"We want to take it to the next level," he said.
Origin's board had not yet decided how much of the airline would be up for grabs but it would not be a majority stake, he said.
The rest of the airline's ownership was spread between senior staff.
The airline employs 450 staff, has 14 aircraft and is flying close to 1 million passengers from 14 towns and cities around New Zealand each year.
While business has become tougher in the airline industry since Air New Zealand introduced its cut- price domestic fares, Origin is well placed to capitalise on new international airlines flying into New Zealand looking for an independent feeder service.
It has already been talking to Pacific Blue, which is due to begin transtasman services early next year.
Other possible partners include Emirates, Asiana and Royal Brunei.
Origin is already a code-share partner with Qantas but the Australian giant has put that relationship in doubt with its proposed alliance with Air New Zealand.
Origin and Qantas continue to code share in the meantime.
Inglis has been a staunch critic of Air NZ and Qantas' merger plan, and has also complained about Air NZ's competitive tactics to the Commerce Commission.
Ironically, the money to fund Origin Pacific came from the sale of Air Nelson, which he sold to Air NZ in 1995.
Inglis said KPMG was due to report back in March.
- NZPA
Things starting to get hot in the kitchen with looming new entrants...
Why not do an IPO...it would probably list higher than AirNZ
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