Air New Zealand says it's "business-as-usual" for its relationship with Star Alliance partner United Airlines, as the giant American airline teeters on the edge of bankruptcy.
United is likely to file for bankruptcy within the next two weeks unless it can soon get a new wage-cut deal from reluctant mechanics and a crucial federal guarantee of a US$1.8 billion ($3.6 billion) loan, sources familiar with the matter said.
Mechanics at United, the No. 2 US airline, last week rejected US$700 million in proposed pay cuts over 5-1/2 years. The rejection sharply increased the odds of bankruptcy as a US$375 million debt payment comes due tonight, New Zealand time.
United is the key airline in the Star Alliance global grouping to which Air NZ belongs.
"All the Star members acknowledge the importance of United to the Alliance, but they are going through their own business recovery programme at the moment and (Air NZ involvement) is not required," Air NZ spokeswoman Rosie Paul said.
" It's not our issue at all."
Media reports from the United States said that United's parent UAL Corp is seeking US$200 million ($405.18 million) in loans from its partners in the Star Alliance, to help raise the money it needs to avoid a bankruptcy filing.
Other Star Alliance members include Air Canada, Deutsche Lufthansa AG, All Nippon Airways Ltd, Viacao Aerea Rio-Grandense SA or Varig, BMI British Midland Airways Ltd and Singapore Airlines Ltd.
The debt payment due tonight is on aircraft-backed securities called Enhanced Equipment Trust Certificates -- publicly-held debt that has better protection generally and under US bankruptcy law than other forms of credit.
There is a 10-day grace period, however, for United to make the payments to creditors without being considered in default.
- AGENCIES
Air NZ unfazed as United teeters on edge of bankruptcy
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