Origin Pacific Seeking a Partner
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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
Comments?
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
Comments?
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Mon "Dominion Post"
Air NZ in competition probe
15 December 2003
By DAVID KING
The Commerce Commission has ordered a full investigation into a claim about alleged anti- competitive behaviour by Air New Zealand.
Nelson airline Origin Pacific went to the competition watchdog in September to complain about Air NZ's move to introduce a direct Christchurch-Hamilton service shortly after Origin announced similar plans.
Origin shelved its plans after Air NZ said it would be flying exactly the same route, at the same time, but with a larger aircraft.
Origin accused the national carrier of abusing its dominant market position, and produced a "smoking gun" internal memo which it said proved its case.
At the time Air NZ strongly denied any wrongdoing, with senior vice president of regional airlines Norm Thompson saying it was coincidental the new service was being launched at exactly the same time as Origin.
Yesterday Air NZ said it had no comment to make while an investigation was going on. A Commerce Commission spokeswoman said an initial inquiry into Origin's internal complaint had been held, and the commission had decided to open a full investigation.
"We are investigating an alleged breach of section 36 of the Commerce Act in regards to (Air NZ) taking advantage of its market power," she said. It was not possible to say when the investigation would be complete. In September Air NZ said it had been planning to introduce the Christchurch service for months. Origin claimed its "smoking gun" memo proved otherwise.
The internal memo, which was sent to staff at Air NZ subsidiary Eagle Air dated September 5 to detail the new service, said Air NZ would be "... responding to counter this move (to start the Christchurch- Hamilton service) as we must in a competitive environment".
Mr Inglis said the complaint raised an important issue for consumers in the regions. "I think it is very important, because, if the dominant operator can act as blatantly as that appears to be, it doesn't give much hope for the regions to have or enjoy the competition that travellers have on the main trunk. We would be disappointed if this were swept under the carpet."
========================================
Air NZ in competition probe
15 December 2003
By DAVID KING
The Commerce Commission has ordered a full investigation into a claim about alleged anti- competitive behaviour by Air New Zealand.
Nelson airline Origin Pacific went to the competition watchdog in September to complain about Air NZ's move to introduce a direct Christchurch-Hamilton service shortly after Origin announced similar plans.
Origin shelved its plans after Air NZ said it would be flying exactly the same route, at the same time, but with a larger aircraft.
Origin accused the national carrier of abusing its dominant market position, and produced a "smoking gun" internal memo which it said proved its case.
At the time Air NZ strongly denied any wrongdoing, with senior vice president of regional airlines Norm Thompson saying it was coincidental the new service was being launched at exactly the same time as Origin.
Yesterday Air NZ said it had no comment to make while an investigation was going on. A Commerce Commission spokeswoman said an initial inquiry into Origin's internal complaint had been held, and the commission had decided to open a full investigation.
"We are investigating an alleged breach of section 36 of the Commerce Act in regards to (Air NZ) taking advantage of its market power," she said. It was not possible to say when the investigation would be complete. In September Air NZ said it had been planning to introduce the Christchurch service for months. Origin claimed its "smoking gun" memo proved otherwise.
The internal memo, which was sent to staff at Air NZ subsidiary Eagle Air dated September 5 to detail the new service, said Air NZ would be "... responding to counter this move (to start the Christchurch- Hamilton service) as we must in a competitive environment".
Mr Inglis said the complaint raised an important issue for consumers in the regions. "I think it is very important, because, if the dominant operator can act as blatantly as that appears to be, it doesn't give much hope for the regions to have or enjoy the competition that travellers have on the main trunk. We would be disappointed if this were swept under the carpet."
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