Air NZ suspends Australian check-ins

By Phil Boeyen, ShareChat Business News Editor

Friday 14th September 2001

Emotions over the failure of Ansett Airlines are heating up across the Tasman with Prime Minister Helen Clark's Air New Zealand (NZSE: AIRVA) flight stopped from taking off at Melbourne airport.

Angry Ansett workers apparently learned that Ms Clark was aboard the flight earlier today and blockaded the aircraft with airport service vehicles, walking away with the keys.

The Prime Minister headed back into the terminal while other arrangements were made for her return. Ms Clark was coming home early from an overseas trip after a conference she was to attend in Europe was cancelled because of the attacks in the US.

Air New Zealand says it has temporarily suspended check-in for all Australian flights as a result of the industrial action taking place at Melbourne airport and is closely monitoring the situation at all airports in Australia to which it flies - Melbourne, Sydney and Brisbane, Perth and Cairns.

AAP is reporting that Sydney airport has come to a virtual standstill after unions called all airline and airport workers off the job in protest of the Australian government's unwillingness to help the country's second largest carrier to stay in business.

The Australian government refused last week to come to Ansett's aid, forcing Air New Zealand to place Ansett in voluntary administration on Wednesday night.

The New Zealand government is helping to keep the New Zealand arm of the business in the air by guaranteeing access to $550 million in funding.

Australia's Deputy Prime Minister, John Anderson, has called the Ansett grounding 'a calamity of the first order' and is pointing the finger directly at Air New Zealand's board and management.

The mounting tension over the Ansett debacle comes as Air New Zealand and Qantas are already losing millions of dollars from lost business to the US, which closed its airspace immediately following the attacks on the World Trade Centre and the Pentagon.

After a rollercoaster week on the sharemarket Air NZ shares have again taken a dive today as the reality of the company's debt-laden balance sheet sinks in.

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