Origin Pacific gets a lifeline?
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Origin Pacific gets a lifeline?
Origin Pacific has found a new investor and hopes to have three on board by the end of March, managing director Robert Inglis says.
The Nelson-based commuter airline engaged KPMG at the end of last year to find outside investors to help fund fleet expansion.
"They have moved part-way down the track and are proceeding well toward completing the capital raising," Mr Inglis said yesterday.
He would not disclose how much capital was being raised.
A group of New Zealand individuals had come on board through a single investment vehicle.
"We are ideally looking for two to three investors to fill the capital needs," Mr Inglis said. "We certainly were hoping to raise our target figures to allow us to carry out our expansion without going past three organisations."
The target of completing the capital raising by the end of March was on track, despite the sudden cancellation of Origin's code share and aircraft leasing arrangements with Qantas from March 1. The project was suspended while a new business plan was drawn up to take to investors, Mr Inglis said.
"That has taken a little longer and has had a bearing on the ability to push ahead with capital raising till we had that complete."
Origin has since set up agreements to carry passengers from several international airlines flying into Auckland, including KLM Royal Dutch Airlines, Malaysian Airlines and Korean Airlines.
An agreement with new budget trans-Tasman operator Pacific Blue was expected soon.
"Both airlines have said there appears to be a mutual benefit to working together," Mr Inglis said.
Pacific Blue will add a Wellington to Sydney flight to its schedule tomorrow. It already flies from its Christchurch base to Brisbane.
Mr Inglis said he expected the new airline agreements to more than replace passengers lost from Qantas.
"They have to mature and come to fruition. I would imagine they would surpass the business that we have had from Qantas, but some of them may take a little time to develop."
He would not say if the fleet expansion would include a move into jets.
"Our core business is our services to the regions and our freight business, and that is certainly what we are focusing on."
The Nelson-based commuter airline engaged KPMG at the end of last year to find outside investors to help fund fleet expansion.
"They have moved part-way down the track and are proceeding well toward completing the capital raising," Mr Inglis said yesterday.
He would not disclose how much capital was being raised.
A group of New Zealand individuals had come on board through a single investment vehicle.
"We are ideally looking for two to three investors to fill the capital needs," Mr Inglis said. "We certainly were hoping to raise our target figures to allow us to carry out our expansion without going past three organisations."
The target of completing the capital raising by the end of March was on track, despite the sudden cancellation of Origin's code share and aircraft leasing arrangements with Qantas from March 1. The project was suspended while a new business plan was drawn up to take to investors, Mr Inglis said.
"That has taken a little longer and has had a bearing on the ability to push ahead with capital raising till we had that complete."
Origin has since set up agreements to carry passengers from several international airlines flying into Auckland, including KLM Royal Dutch Airlines, Malaysian Airlines and Korean Airlines.
An agreement with new budget trans-Tasman operator Pacific Blue was expected soon.
"Both airlines have said there appears to be a mutual benefit to working together," Mr Inglis said.
Pacific Blue will add a Wellington to Sydney flight to its schedule tomorrow. It already flies from its Christchurch base to Brisbane.
Mr Inglis said he expected the new airline agreements to more than replace passengers lost from Qantas.
"They have to mature and come to fruition. I would imagine they would surpass the business that we have had from Qantas, but some of them may take a little time to develop."
He would not say if the fleet expansion would include a move into jets.
"Our core business is our services to the regions and our freight business, and that is certainly what we are focusing on."
