Flying kangaroo eyes the koru

By Phil Boeyen, ShareChat Business News Editor

Tuesday 29th May 2001

Qantas is looking at buying the holdings in Air New Zealand currently held by Brierley Investments and Singapore Airlines.

Air New Zealand chairman, Sir Selwyn Cushing, has announced he is immediately stepping down from the role pending the outcome of the Qantas proposal.

Sir Selwyn has also advised that he intends to make a statement to the Singapore Stock Exchange regarding his role as chairman of Brierley Investments Limited later in the day, although he intends to remain a director of both BIL and Air New Zealand.

Qantas says if the deal went ahead Air New Zealand would sell its Ansett subsidiaries to Singapore Airlines.

Competition between the two rivals has intensified since Air NZ took full control of beleaguered Ansett and has had to fight a costly competitive airfare war across the Tasman.

Qantas is also due to begin a full-time domestic service in New Zealand soon, taking over from the former Qantas NZ which collapsed last month. Qantas also recently announced it was partnering with budget airline Impulse in Australia.

Former Qantas executive Gary Toomey joined Air NZ-Ansett last year, replacing long-time Air NZ staffer Jim McCrea.

Air New Zealand's board says the proposal by Qantas is conceptual and no valuations have been incorporated in the proposal at this stage.

"It is therefore too early for the Air New Zealand board to form a view," it says in a statement.

"However, the board will consider the proposal in the interests of all shareholders and has established an independent committee of directors to consider the proposal as well as other options."

Comments from our readers

No comments yet