Airlines face initial rejection

By IRENE CHAPPLE

One of New Zealand's most awaited business decisions is due on Thursday when the Commerce Commission will release its draft decision on the Air New Zealand/Qantas alliance.

All indications now point to an initial rejection of the plan.

The airlines are expected to be given reasons the deal will not be immediately approved and sent off to work through the issues.

The proposal, announced in November, would involve Qantas taking a 22.5 per cent stake in the New Zealand airline.

The deal must gain approval from the shareholders and competition watchdogs on both sides of the Tasman.

Anticipation surrounding the announcement overshadows the rest of the week's action.

Elsewhere, Restaurant Brands announces its full-year earnings tomorrow.

Arthur Lim, of Macquarie Equities, says the company is expected to produce a tax-paid profit of $11 million.

He said the market would be looking at the company's performance in Australia, and would want to see if there was any commentary on possible competition, now that the Dominos pizza chain was moving into New Zealand.

Coffee chain Starbucks remained the company's star player.

Waste Management holds its annual meeting on Thursday.

Lim said that was likely to be a low-key affair, although the directors would be looking for an increase in fees.

The April 2003 issue of the Quarterly Survey of Business Opinion will also be released on Thursday, and is likely to reflect decreased confidence.

"Business confidence will be down," said Lim, citing the impact of the war in Iraq.

The more recent onset of the mystery illness Sars will dampen the mood even further.

Lim said global confidence had dropped dramatically.

Uncertainty over the war's duration and ultimate result left business wavering.

"Business can handle good or bad news," he said, "but it doesn't like uncertainty."