Air NZ rumour in the air

By CHRIS DANIELS

Reports that an announcement of Qantas' buying a stake in Air New Zealand is imminent are again circulating across the Tasman.

The Perth-based West Australian newspaper quoted unnamed airline sources as saying an announcement of Qantas' buying into our national flag carrier would be made at the annual meeting of Air New Zealand shareholders on October 23.

Air New Zealand spokesman Mark Champion said nothing had changed since the airline's last statement, which was that while negotiations were proceeding, no offer or proposal had been received.

He would not be drawn on whether any announcement would be made at the annual meeting.

A Qantas spokesman offered a similar response to the Australian story.

Deutsche Bank said it expected a deal between the two airlines to be announced before Christmas, with regulatory requirements taking a further three months.

"If no announcement is made by that time, we think it could well signal that negotiations have stumbled or that other hurdles [regulatory issues] are proving more difficult than expected." However a deal was expected to go ahead.