English allegations over Air NZ air points denied

By NZPA

Friday 26th July 2002

Air New Zealand denied air points would be at risk under a shareholding deal with Qantas, as the airline came under further pressure from the National Party.

On a televised debate last night, National leader Bill English claimed the rumoured sale of Air New Zealand shares to Qantas involved "the cancellation of all Air NZ air points".

Prime Minister Helen Clark said the allegation was news to her.

But this morning National's finance spokesman David Carter called on the Stock Exchange to investigate the flow of information to shareholders about Air NZ.

"I am deeply concerned that there is widespread acknowledgement within aviation and business circles in Australia that a deal has been done between Air NZ and Qantas. My concern is that the Australian market appears to have more information than the New Zealand market."

Qantas' share price jumped 10c yesterday as the rumours grew stronger that an announcement was imminent that Qantas had secured as stake as high as 25 percent in the New Zealand carrier.

Talks between the two airlines have been confirmed but Air NZ's managing director Ralph Norris gave reassurances today that the New Zealand carrier's flying rewards were not under threat.

"Customers need have no fear about losing their air points," he said in a statement.

"Such comments are mischievous and totally without foundation."

Air points fears may have arisen from the fact that Air NZ belongs to the Star Alliance group of airlines while Qantas belongs to One World.

During last night's debate, the Prime Minister reiterated the Government still had no proposal before it about Air NZ.

"I cannot comment on any commercial dealings of Air N Z because insider trader rules prevent me doing that, but what I want to assure people of New Zealand is that this Government rescued this airline, this Government is part of the long-term solution to keeping this airline viable and vibrant and working in the interests of New Zealand."

She repeated that the Government would keep "a strong majority shareholding in the airline".

Last month brokerage Salomon Smith Barney estimated that a 25 percent stake in Air NZ would cost Qantas $400 million.

Today the National Business Review carried a story that suggested Qantas could pay 60c per share -- 6c below Air NZ's current price.

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