Forum Archive Index - June 2001

["Deidre" <deidre.gunn@clear.net.nz>]

I'm sure there are a thousand different views on Air New Zealand. Well, for
what its worth, I think the Government will move on foreign ownership. The
only question is how and by how much? 

My take on the goings on between Air New Zealand and the Government, is that
its a load of posturing to make this the Governments problem. I think all
the other solutions put forward so far have been, in part, to convince the
Government that there aren't any other solutions other than more foreign
investment. Whether the Government likes it or not, they are in the middle
as legislation controls foreign ownership. 

The Government seems to want two things, New Zealand ownership and
competition (even though the size of NZ doesn't really support it). The
Singapore Airlines' offer has to be attractive to the Government. It doesn't
offer local ownership, but it does make it possible for Air NZ to continue
to compete in NZ and Australia. If Qantas buys into Air NZ then competition
questionable both here and in Australia (too hard to make work). The options
are limited and there are no apparent local investors or feasible internal
options.

The more time has gone on, the more I think the Government knows they will
have to do something.

I'm no expert and this is just my opinion. I'm sure someone will point out a
thousand reasons why I'm wrong and please do - I'd love to here your view.

Deidre
Disc: Hold a small number of AIRVA

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