Forum Archive Index - June 2001

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

> 
> I think the Government will move on
> foreign ownership. The only question is how and by how much? 
>


Yes, I can't see the government itself putting in more money.  
Actually I can't see any New Zealand entity relishing putting their 
hands in their pockets for more AIR shares.

Nevertheless they will have to.  No matter what happens, 51% of the 
company must remain in New Zealand ownership, or those precious 
bilateral air rights go.  


> 
> The Government seems to want two things, New Zealand ownership and
> competition (even though the size of NZ doesn't really support it).
>

Yes, in the internet discussion held after the ABC four corners 
program there was even a suggestion that Australia wasn't a big 
enough market for two competing airlines.

>
> 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. 
>

Yes, and I think that is the key point.   But if the convergence of A 
and B shares into one class is a done deal, then why aren't they 
trading at exactly the same price already?

And is SIA really being generous with their 'rescue deal'?   Was 
there really ever any chance they would let the existing 
25% of the company they already own whither away?


> 
> 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.
> 

You just got promoted to expert Deidre.   I think you pretty much 
have it right. SNOOPY



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