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Airline to file final proposal

Friday 6th July 2001

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By Graeme Kennedy

Air New Zealand expects to file its final proposal for lifting the government's foreign ownership cap to allow Singapore Airlines to increase its 25% stake in the carrier early next week.

It delivered a draft proposal a week ago and since then has been in discussion with officials to work through details. The carrier needs a cash injection of several hundred million dollars to re-fleet troubled 100%-owned subsidiary Ansett Australia and the board identified a larger SIA shareholding as the preferred option to raise the necessary funding.

However, such a move would require the government to lift its 25% single foreign ownership limit to as much as 49%.

The board rejected a proposal from Qantas in which the Australian carrier would take 25% of Air New Zealand and SIA acquire all of Ansett.

Air New Zealand chief executive Gary Toomey was scheduled to have a short meeting with Transport Minister Mark Gosche to discuss the issues today but is understood to be suffering from a bout of influenza.

The carrier hopes to have a decision from the government within two or three weeks.

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