Air NZ on ropes again over asset stripping

By Phil Boeyen, ShareChat Business News Editor

Tuesday 19th March 2002

Air New Zealand (NZSE: AIR) is defending itself against new claims of asset stripping Ansett Airlines, several months after it cut the troubled airline loose.

The Australian newspaper reported this morning that a second creditors' report by Ansett's administrators, Andersen, claimed there was evidence that Air NZ had stripped assets from the carrier. It also claimed there had been inappropriate charging of fuel and other operating costs before Ansett's collapse.

Air NZ says it will vigorously defend itself against any allegations.

"We are disappointed to see the Ansett administrators reviving allegations of asset stripping and inappropriate charging after reaching agreement with us to settle all claims between Ansett and Air New Zealand," says MD Ralph Norris.

"The allegations are nothing more than groundless rumours which were circulated when anger over the loss of Ansett was at its peak. We refuted them at the time, and continue to do so."

Mr Norris says one allegation was that Air NZ put $A200 million of its aviation fuel bills through Ansett's accounts but claims "each airline had a separate account and oil companies billed the airlines separately based on aircraft registration numbers which identified the correct airline to be billed beyond doubt."

Other allegations included Air NZ taking Ansett jet engines and spares and flying them out of the country and that Air NZ cleared out Ansett bank accounts in the last few weeks before a voluntary administrator was called in.

Mr Norris says Air NZ knows of no grounds for action against the company by Ansett administrators and will be asking them to provide the reasons for advising creditors that the matter justifies further investigation.

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