----- Original Message -----
Sent: Sunday, May 13, 2001 7:55 AM
Subject: Re: [sharechat] Air New Zealand
as a taxpayer owned company?
It's all a political ploy by Air New Zealand. They ask the
NZ Government for additional capital knowing full well that they will be
turned down. They then go back to them and say "We desperately need the money
and as you won't cough up, and Brierleys can't afford to, then how about
letting Singapore Airlines put up the additional capital we need". The Govt is
then stuck between a rock and a hard place and either the National
carrier bellyflops or they allow SIA to increase its
shareholding above the current 25% limit. Which option do you think they
will choose?
----- Original Message -----
Sent: Sunday, May 13, 2001 7:05
AM
Subject: [sharechat] Air New Zealand as
a taxpayer owned company?
So Air New Zealand is preparing a case
seeking $500M funding from the Government.
Subsequently denied by Selwyn Cushing on
Radio New Zealand.
As a taxpayer I would be horrified if the
Government did assist Air New Zealand to this degree. Even more so if Air
New Zealand continued paying dividends to shareholders. Taxpayer subsidised
dividends - what next.
Political issues and the impacts that they
can cause are one of the risks of owning an airline in New
Zealand.
Good business planning takes these into
account and that risk is managed.
My advice to the Government, if it felt
the need to 'invest' in Air New Zealand, would br to find another $500M and
buy the whole lot back. After all the market only values it at less than a
$1B.
That way all taxpayer 'shareholders' would
benefit from the turnaround (yes ?) in Air New Zealand's
fortunes
How do others feel
Cheers
Peter
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