Origin Pacific sold?

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Origin Pacific flies into financial crisis

09 August 2006 By ROELAND VAN DEN BERGH

Regional airline Origin Pacific is urgently trying to raise millions of dollars to stave off creditors.

It is understood a decision on whether to continue trading is imminent.
Managing director and founder Robert Inglis travelled to Singapore last week to meet potential investors.
A spokesman for the Nelson-based airline said it hoped the Singapore trip would "bear some fruit".
"But very clearly the company is in a position where it does need a capital injection and we are in the market for that. We are talking to a number of parties."
The spokesman would not say what would happen if an investor was not found in the next few days.
Asked if any creditors had given the airline a deadline for payment, the spokesman said: "Creditors get recycled and we pay as you go."
Origin has relied on its profitable freight operation to maintain cash flow. Its passenger services have struggled.
In 2004, the airline was bailed out by creditors owed $11.4 million. In June that year high-profile Christchurch businessman Mike Pero and a Lower Hutt investment consortium led by obstetrician Howard Clentworth each bought a quarter share in the airline.
Last year potential investors were shoulder-tapped in a bid to raise $3 million to shore up Origin's balance sheet.
The airline was expecting to turn a profit in the year to June, the first since its creditors' rescue.
Origin flies to 11 centres, most in the North Island, and has 263 staff.
It has a tiny market share, estimated to be about 6 per cent across regional centres and about 2 per cent of the total market.
Industry sources said Origin had tried to sell part of its business to airlines in New Zealand and Australia.
It is believed Air New Zealand was approached about a month ago but declined to buy the passenger business.
Australian regional airline Regional Express was also understood to have rebuffed an approach.
It appears Origin's latest financial crisis came about because its fleet of four Jetstream 41 aircraft was required to comply with a worldwide inspection order last month.
The airline said the inspection, ordered by the manufacturer of J41 propellers, caused widespread disruption to services during the school holidays.
In June, the airline was bullish about expansion plans and launched a direct service between Christchurch and Tauranga.
It has taken a case to the Commerce Commission alleging Air New Zealand is conducting anti-competitive behaviour on some routes.