Air NZ endorses statement

By CHRIS DANIELS

Air New Zealand yesterday said it has consented to a statement referring to its talks with Qantas being printed in a prospectus to be sent to all Qantas shareholders.

The prospectus, filed with the Australian Securities and Investments Commission yesterday, includes the following:

"Qantas is in discussions with Air New Zealand about the possibility of a strategic alliance between the two companies and an acquisition by Qantas of a minority equity interest in Air New Zealand.

"While both Qantas and Air New Zealand believe that such an alliance would be of value to both airlines, discussions are ongoing.

"However, no agreement or commitment has been reached or entered into at this time and no assurances can be given as to what, if any, agreement will be reached."

It says any agreement would be conditional on gaining several approvals, including those of regulators and Air New Zealand shareholders.

"If any agreement is reached, part of the proceeds of the Entitlement Offer may be used to fund the acquisition of shares in Air New Zealand."

Aviation analyst Peter Sigley, of JBWere, said the fact that both parties, especially Qantas, had the confidence to put the statement in its prospectus meant there was some certainty of an agreement being reached.

It appeared the parties wanted a deal and it would be up to regulators whether it would proceed, he said.