Air NZ cops more flak from Aussies

By DANIEL RIORDAN and NZPA

Air New Zealand is under renewed attack from Australia.

Thirteen past and present executives, including former chief executive Gary Toomey are being sued over the collapse of Ansett.

The Australian Government-controlled Travel Compensation Fund is suing the group over their directorships of Ansett and its travel agency, Traveland.

The agency collapsed with its parent in September.

The fund has filed its claim in the New South Wales Supreme court, alleging that Ansett and Traveland "each failed to take adequate steps to meet obligations to clients for money entrusted to the company prior to collapse".

The fund has received more than 11,000 claims for compensation, worth $17.2 million, from Traveland clients. Another $3.4 million-worth have been rejected or withdrawn.

Air NZ said it has legal advice that "there is no proper basis for holding any of the executives liable" and that it would defend the charges.

The airline said it and the executives had indemnity cover.

Legal threats from Australia are nothing new for the airline.

The Australian Securities and Investment Commission this month set up a taskforce to investigate the possibility of bringing a class action against Air NZ over its financial disclosures ahead of Ansett's collapse.

The commission gave a qualified bill of health to Ansett directors (largely the same group as the then Air NZ board) who had been under scrutiny for the possible breach of their governance duties and insolvent trading.

Australian media yesterday repeated claims that Ansett's administrators were continuing to investigate potential claims against Air NZ including asset stripping, centralisation of treasury functions and the sweeping of bank accounts.

Air NZ again denied those claims, noting the administrators had said that they had found nothing to support the allegations.

A spokesman for the administrators said last week that suggestions they were investigating the claims were based on a misreading of their report to creditors.

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