Airline result delayed

By Phil Boeyen, ShareChat Business News Editor

Wednesday 29th August 2001

Air New Zealand is delaying its full-year announcement until it knows more about recapitalisation plans.

The airline was due to report its results on September 4 but will now report on September 13.

Acting chairman, Jim Farmer, says the company is working with the government and its advisors to progress options for recapitalising the business

"We want to make sure that directors have proper time to consider fully the outcomes of the government's policy review process.

Dr Farmer says the Air New Zealand board is still reviewing a number of issues that would have an important bearing on final outcomes and it planned to talk with the government on these issues as soon as practicable.

"The process will continue into next week. Details of the proposed re-capitalisation require more time to finalise than announcement of year-end results on 4 September will allow."

Earlier this week Prime Minister Helen Clark said the government was not interested in taking any kind of stake in the airline, believing that it had got itself into the current financial mess and therefore was responsible for finding a resolution.

However she also admitted that the government is keen to see the airline remain viable, lending weight to predictions that Singapore Airlines will be allowed to lift its holding in the company to 49%.

Air New Zealand says the Singapore option is its preferred outcome over allowing Australian rival Qantas to take a stake.

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