Forum Archive Index - July 2001

[Greg <g&jelliott@xtra.co.nz>]

A simple Q for the airline whips.

Who owns Air NZ? Now the company site declares the major shareholders as BIL
(30%) and SIA (25%). There is no mention of the NZ Govt. Perhaps they own
some of the remaining 156.5m A shares?

Today's NBR report was interesting in showing that 42% of Kiwis polled would
prefer the Govt to bailout Air NZ, rather than allow increased foreign
ownership.  Another Q cites 63% opposed to a 49% stake by SIA or Qantas. I
don't know if those Kiwis who polled were also shareholders - NBR doesn't
say.

By party, NBR gives the proportion opposed to an increase in SIA's ownership
as:
92% of Alliance
66% of Labour
59% of National 

So the electorate seems broadly disposed against Singapore Inc, despite the
Air NZ Board's preference toward them.  Where do the shareholders come into
this? After all, the electorate doesn't own Air NZ...or do they? Obviously,
Govt approval is required to change the cap on foreign ownership. And that's
a political decision which must take account of electoral sentiment. But how
do you run a business in that sort of climate? I mean, Air NZ are really
constrained in their options here. Can't increase Qantas ownership, can't
increase SIA ownership. Could make a rights issue, but I don't see a queue
of willing Kiwi investors. And they don't really want to have to sell Ansett
if they can avoid it. It would probably go for a bunch less than they paid
for it ($A475m for 50% in 96, $A680 for remainder in 00). I don't know what
affect that would have on the share price - any takers? What are the options
now?

Greg E. (disc hold Air NZ) 


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