Administrators clear the air over asset stripping

By Phil Boeyen, ShareChat Business News Editor

Wednesday 20th March 2002

Air New Zealand (NZSE: AIR) is pointing to a release from Ansett's administrators as further evidence that allegations of asset stripping at the Australian airline are groundless.

New CEO Ralph Norris came out swinging yesterday after Australian media reported there could be further investigation into claims that Air NZ had taken assets from Ansett and charged fuel bills to the carrier just before it collapsed last year.

Mr Norris said yesterday that Air NZ would vigorously defend such allegations. The airline now says it is pleased to see a public correction on the matter by Ansett's administrators.

In a release on the matter Ansett administrators Mark Mentha and Mark Korda have corrected reports that they may pursue legal action against Air New Zealand.

They say the media reports were "inaccurate in interpretation regarding references to investigations progressed since our first report to creditors."

"To date we have found nothing to support the allegations of asset stripping or alleged inappropriate charging of fuel and other operating costs," Mr Korda says.

The issue was brought to light after the administrators released a second report into the Ansett Group that included a section discussing potential course of action available to the administrators.

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