Qantas confirms NZ talks

By Phil Boeyen, ShareChat Business News Editor

Thursday 5th April 2001

Battered Australian airline Qantas says it's holding discussions with the company that owns the franchise to operate under its name in New Zealand.

Qantas New Zealand, formerly Ansett New Zealand, is believed to have lost more than $250 million since it began operating here in the 80s, with just a few years in profit.

The struggling airline was sold last year by News Corp to a private group of investors under the name Tasman Pacific Airlines. News Corp also last year sold its 50% share of Ansett Australia to Air New Zealand (NZSE: AIRVA).

There has been continuing market speculation since Ansett New Zealand painted the red and white kangaroo logo on its planes that the Aussie airline would move to take a formal stake rather than just lending its name to the operation.

Qantas spokesperson, Melissa Thomson, says as a result of media speculation in New Zealand, Qantas has confirmed that it is holding discussions with Tasman Pacific Airlines.

"The discussions relate to the potential purchase of the Qantas New Zealand franchise by Qantas Airways Limited.

"All Qantas New Zealand services will continue to operate as usual and Qantas Airways Limited will honour all Qantas New Zealand tickets."

The New Zealand domestic market has been one of the few saving graces for Air New Zealand, which is under financial pressure from its purchase of Ansett Australia.

In its recent half-year Air New Zealand said that its New Zealand domestic airline business performed strongly during the period, with total seat capacity growing by 7% and load factors of around 65%.

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