NZ and * in Australia
Mar 18, 2002, 3:55 am
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Join Date: Apr 2001
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NZ and * in Australia
Air NZ chief confident about strategy
Air New Zealand's Chief Executive Ralph Norris says the airline would like a cornerstone shareholder and was also in talks with Australian carriers about cooperating on passengers.
Norris, speaking on Australian TV's Business Sunday, said the airline, which had sought to enter the Australian market via the the now defunct Ansett, was seeking a cornerstone shareholder.
However, he said the airline would also look to take advantage of the Star Alliance membership in taking advantage of opportunities in Australia.
Other members include Air Canada, All Nippon Airways, Deutsche Lufthansa, Singapore Airlines, United Airlines and Varig Brazilian Airlines.
Norris said the Star Alliance had a significant passenger feed into Australia on an annual basis worth somewhere around $180 million a year.
"From our perspective, we are looking at ways and means of taking advantage of that feed which may see Air New Zealand triangulating into Australian cities," he said.
"We're in discussions with Virgin Blue and also with Qantas in regard to feeder traffic," he added.
Norris said Patrick Corp's $313.69 million investment in Australian-based Virgin Blue had probably given more depth to that airline.
He added the airline was not negotiating cornerstone investments at this point, and hadn't had any talks with Virgin Blue about equity stakes.
"(But) we're looking at the options that there are in that regard and certainly that's something that we will progress with the board when we have a definitive recommendation to make in that regard," he said.
Norris said a significant part of the $885 million cash injection into Air New Zealand by the New Zealand government had been used to pay off unsecured bank debt and reach a settlement with the administrators of Ansett.
He said Air New Zealand had sufficient capital at its disposal to run the business over the next several months ahead but would move to an equity raising via a rights issue.
"We're probably looking in the order of $200 million and the New Zealand government has made a commitment that if the airline needed another $150 million that they would be prepared to inject that additional capital," he said.
"We've got a strategy that is going to be workable and one that is going to be attractive to the government particularly to put up the extra $150 million, so I would like to see us within a period of four to five months being in a position to do that," he said
Air New Zealand's Chief Executive Ralph Norris says the airline would like a cornerstone shareholder and was also in talks with Australian carriers about cooperating on passengers.
Norris, speaking on Australian TV's Business Sunday, said the airline, which had sought to enter the Australian market via the the now defunct Ansett, was seeking a cornerstone shareholder.
However, he said the airline would also look to take advantage of the Star Alliance membership in taking advantage of opportunities in Australia.
Other members include Air Canada, All Nippon Airways, Deutsche Lufthansa, Singapore Airlines, United Airlines and Varig Brazilian Airlines.
Norris said the Star Alliance had a significant passenger feed into Australia on an annual basis worth somewhere around $180 million a year.
"From our perspective, we are looking at ways and means of taking advantage of that feed which may see Air New Zealand triangulating into Australian cities," he said.
"We're in discussions with Virgin Blue and also with Qantas in regard to feeder traffic," he added.
Norris said Patrick Corp's $313.69 million investment in Australian-based Virgin Blue had probably given more depth to that airline.
He added the airline was not negotiating cornerstone investments at this point, and hadn't had any talks with Virgin Blue about equity stakes.
"(But) we're looking at the options that there are in that regard and certainly that's something that we will progress with the board when we have a definitive recommendation to make in that regard," he said.
Norris said a significant part of the $885 million cash injection into Air New Zealand by the New Zealand government had been used to pay off unsecured bank debt and reach a settlement with the administrators of Ansett.
He said Air New Zealand had sufficient capital at its disposal to run the business over the next several months ahead but would move to an equity raising via a rights issue.
"We're probably looking in the order of $200 million and the New Zealand government has made a commitment that if the airline needed another $150 million that they would be prepared to inject that additional capital," he said.
"We've got a strategy that is going to be workable and one that is going to be attractive to the government particularly to put up the extra $150 million, so I would like to see us within a period of four to five months being in a position to do that," he said
