Air NZ cashes up 767s

By Phil Boeyen, ShareChat Business News Editor

Monday 30th April 2001

Air New Zealand (NZSE: AIRVA) has conditionally sold its entire owned fleet of ten B767-200 aircraft and plans to use the money it gets to buy new planes for its ailing Australian business.

The airline says the sale includes seven currently operated by Ansett in Australia and three operated by Air New Zealand and will return around $350 million to the company.

The proceeds of the sale will help to replace Ansett's aircraft over the next three years.

CEO Gary Toomey says the planned renewal of Ansett Australia's fleet has, since the middle of last year,
included the early retirement of these aircraft.

"The thorough checks that they are being given by our own engineering unit and inspectors from the Australian Civil Aviation Safety Authority as a consequence of their recent grounding will enable the technical inspections by the proposed lessee to be completed very quickly."

"We have confidence in the Ansett B767s as safe aircraft. Their replacement is required simply because I the highly competitive conditions applying in the Australian domestic market."

Mr Toomey says Ansett needs to be able to make a more modern and efficient aircraft offer to customers.

The airline says following the grounding of Ansett's B767-200 aircraft by CASA just before Easter, three aircraft have now been thoroughly checked by CASA and allowed to return to service and a fourth is due to return today.

Meanwhile the company is planning to use the several BAE146 jets, formerly operated by Qantas New Zealand, on domestic routes in Australia.

The aircraft had been leased by Qantas NZ from Ansett.

Air New Zealand is leaping further into the New Zealand market from tomorrow with its budget service, Freedom Air, operating between the main centres.

The move is a bid to head off possible competition from either Virgin or Qantas Australian moving into the local market.

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