Air NZ denies SIA buy-in

A rumour that Singapore International Airlines might buy into Ansett Australia has been dismissed by Air New Zealand chairman Sir Selwyn Cushing.

Media reports in Australia have said SIA wants to increase its investment in Australasia.

As it cannot invest further in Air New Zealand, it could again be interested in buying into Ansett Australia.

SIA was eyeing Ansett Australia as long as five years ago, but Air New Zealand had first right of refusal on the 50 per cent of the company it did not own when the other half-owner, News Corporation, decided to sell.

Air New Zealand now has 100 per cent of Ansett Australia, and SIA instead bought a quarter of Air New Zealand.

The Sydney Morning Herald reported that Singapore analysts believed a direct purchase by Singapore Airlines of equity in Ansett was the only way to give the Australian airline the cash to pay for its long-overdue purchase of new jets. But Sir Selwyn said Singapore Airlines, which had established a close working relationship with Air New Zealand, had given no indication it was planning such a move.

Air New Zealand is all spent out.

It had to pay News Corp $744 million for the half-stake in Ansett, and analysts say the company does not have the cash to pay for the Ansett refit.

Talk has gained momentum as Ansett continues to lose market share, with its fleet of Boeing 767 planes in Australia grounded over Christmas and January.

- NZPA, HERALD STAFF