Qantas appeases opposition to Air New Zealand deal
Qantas, the Australian flag carrier, on Thursday sought to appease the New Zealand government and regulators over its plans to acquire a majority stake in competitor Air New Zealand.
If successful in its bid, Qantas said it would leave a majority of Air NZ in New Zealand hands. Air NZ would also retain its brand, its headquarters in Auckland, and a New Zealander chairman.
Qantas also sought to head off regulatory concerns by saying the deal would be dependent upon a Singapore Airlines-owned Ansett establishing a new domestic airline in New Zealand to compete against Air NZ and Qantas – the only two major players in New Zealand’s domestic market.
The mooted deal would see Qantas buy Singapore Airlines’ 25 per cent stake in Air NZ and possibly a substantial portion of Brierley Investments’ 30 per cent.
Singapore Airlines would buy Air NZ’s Australian arm, Ansett. Qantas would never own more than 49 per cent of Air NZ, the Australian carrier said.
In what analysts said was a clear move to appease a New Zealand government expressing increasingly vocal reservations about the deal, Qantas said its proposal would be more of a partnership than merger.
