Qantas CEO - talks with Air New Zealand "fruitful"

By NZPA

Tuesday 29th October 2002

Qantas Airways Ltd chief executive Geoff Dixon today said talks with Air New Zealand had been "fruitful" but gave no indication if the carriers were close to striking a deal.

Reports had suggested a partnership announcement would be made in late October with analysts expecting Qantas to take a 20-25 percent stake in Air NZ with the issue of new shares.

"We're seeking a partnership with Air NZ, we are in discussions with Air NZ, the discussions are very cordial and very fruitful but if something comes out of them, we will be making an announcement," Mr Dixon told reporters after an Australian Institute of Company Directors lunch in Perth.

Mr Dixon also said the process had been "very cooperative" and was "continuing".

"I've always felt for a long time a partnership between Air NZ and Qantas would be very beneficial for aviation on both sides of the Tasman."

Mr Dixon said Qantas was seeking possible equity participation in Air NZ of up to 25 percent.

"We wouldn't want much less than 22 percent but that is entirely up to whatever the negotiations get out."

He also said Qantas would not urge Air NZ to pull out of the Star Alliance if the two carriers formed a partnership.

Reports had suggested a deal with Qantas would likely spell the end of Air NZ's Star membership.

"We would not be urging Air NZ to do anything and that is a very important part of all this," Mr Dixon said.

"It is no different to the relationship British Airways has with Qantas.

"They have a 19 percent stake ... they come to board members and they put their point of view but the total board of Qantas makes the decision and that would be the same with Air NZ.

"Their board would make the decision."

Mr Dixon said Air NZ would be a fully autonomous airline in a partnership with Qantas.

"We would not decide whether Air NZ stayed in Star Alliance or indeed we went into Star Alliance.

"That is something hopefully the two carriers would sit down and decide."

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