Origin seeks more capital to deal with competitive skies
Wednesday August 9, 2006
By Liam Dann
Regional airline Origin Pacific is seeking a sizeable injection of capital to expand to a more "viable" size.
The airline - which came close to bankruptcy in 2002 - is seeking a private placement of capital likely to be in the tens of millions of dollars. A spokesman said yesterday the money would be used to pay for new planes and new routes.
Founder and managing director Robert Inglis was in Singapore last week talking to several interested parties. He is also talking to two New Zealand parties.
Origin Pacific staved off bankruptcy in May 2002 by sacking 93 staff and dramatically cutting back its services.
It was bailed out by mortgage broking millionaire Mike Pero, who bought a 25 per cent stake and took a seat on the board. Pero stood down from the board last year saying he was confident the airline was a viable business again.
But the airline - which flies to 10 destinations including Wanganui and Palmerston North - has struggled to cope with aggressive competition from Air New Zealand.
It has accused Air NZ of using its market dominance to squash competition. In June, it asked the Commerce Commission to investigate after Air NZ began new services on two Origin Pacific routes - Nelson to Hamilton and Nelson to Palmerston North.
Origin is unhappy that Air NZ is chartering aircraft specifically to fly those routes.