Air NZ continues ride of its life

By Phil Boeyen, ShareChat Business News Editor

Tuesday 25th September 2001

Air New Zealand (NZSE: AIRVA) shares are likely to continue seesawing this week as the market awaits word of its recapitalisation plans.

The airline's shares were severely dented Monday as the prospect of placing the company under statutory management began to look a distinct possibility.

Overseas buyers in particular put pressure on the B shares which closed Monday at 15.5 cents while the A shares finished the day at 18 cents.

However prices firmed early Tuesday on the strength of a hint of optimism from the carrier's acting chairman, Jim Farmer.

Mr Farmer says good progress was made in recapitalisation discussions on Monday with the New Zealand government and the airline's major shareholders.

"We also had constructive discussions during the weekend with the voluntary administrators at Ansett Holdings and hope to continue them in the cooperative spirit that has been established since the new administrators took over.

"I expect to reconvene the meeting of the full board of the company in the next two days to complete the consideration of the recapitalisation plan that was adjourned last Friday."

Comments on Monday by Prime Minister Helen Clark indicating she is comfortable with the airline being placed under statutory management added to the drop in value of the airline's shares.

Overall the NZ market Tuesday is showing signs of life in the wake of overnight improvements on the US and European bourses.

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