Forum Archive Index - July 2001

["Bruce Harris" <bruce99@freemessage.com>]

Can understand the frustration at Air NZ having to get permission from a 
government who appears to be treating the issue in a populist way- ie if polls 
say do not allow extra foreign ownership then they won't. The catch for the 
government is that to sit on their hands is not likely to be a popular option 
either. That would mean a further deteriorating Ansett and therefore Air NZ. 
Perhaps putting government money in is a serious option- I had assumed not in 
these enlightened times. And if they do then for a while the problem goes away. 
Probably a neutral solution for the sharemarket.
The Qantas option is really only available if Singapore will buy Ansett - SIA 
are saying they are reluctant to do that- and if SIA do not buy Ansett it is 
difficult to see who would. 
So put government money in or accept SIA higher shareholding, or see Air NZ 
flounder for years(also politically unacceptable). The catch with SIA increase 
is that Bry may resist as it tends to negate a premium they may think they are 
worth. They clearly are pushing for the A, B structure to go, even though there 
is no other compelling reason for that to be rearranged- (although perhaps 
there is no compelling reason to keep it either, if the govt otherwise protects 
the national interest- tourism promotion, competition, branding, provincial 
routes etc) 
Regards, Bruce

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