Business & Finance

Qantas, Air New Zealand in Talks

May 29th, 2001

Qantas Airways Limited today confirmed it had been approached to consider a transaction that would involve Qantas taking a significant stake in Air New Zealand, with Air New Zealand selling Ansett and Ansett International to Singapore Airlines.

Following the approach, Qantas had preliminary discussions with the major shareholders in Air New Zealand, Singapore Airlines and Brierley Investments Limited, and also the Chairman of Air New Zealand, Sir Selwyn Cushing.

Qantas Chief Executive Officer Geoff Dixon stated that his company would await further advice or contact from the Board of Air New Zealand and the two major shareholders in Air New Zealand before deciding whether it would take the matter further.

Qantas shares today rose to close almost 4 per cent higher on the speculation that such a deal, if it were to materialise, would reinforce the company's iron-grip on the Oceanic market.