MP tries out for airline board

By Phil Boeyen, ShareChat Business News Editor

Tuesday 4th September 2001

ACT MP Stephen Franks says he will stand for the Air New Zealand (NZSE: AIRVA) board to ensure there is a contested election at the company's AGM.

Mr Franks isn't expecting to be elected, claiming major shareholders Brierley and Singapore Airlines will ensure that doesn't happen.

"But regardless of that, shareholders should have the opportunity to show their opinion of the stewardship that has led to the humiliation of the national flag carrier.

"There has to be a challenge to, and some change in, a board that has presided over such a catastrophic destruction of shareholder value."

Mr Franks says the airline's shareholders, and taxpayers, need a much better explanation than 'unexpectedly high fuel costs' before entrusting more investment to the current board.

"Must those in control of the company admit to a disastrous mistake? Must we dump Ansett for whatever it might fetch? We need to know the answers before New Zealand throws good money after bad serving the Australian strategy of Asian owners."

The decision to stand for the board was made after Mr Franks had been in touch with the Shareholders Association, and others associated with the company.

"I was researching ways to meet the company's capital needs under the existing flag carrier protection rules in the constitution."

Air NZ shares are being hit badly today as the market expresses its concern over how the airline will recapitalise the business.

A decision on the carrier's future shareholding was expected this week but it has delayed any announcement until its full-year is published on September 13.

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