Ansett memo blasts minister

SYDNEY - Ansett Airlines has attacked Australian Transport Minister John Anderson for his support of Qantas' bid for a stake in Air New Zealand.

But Ansett, which is owned by Air NZ, has denied lobbying Australian state and territory governments in a letter.

A spokeswoman said excerpts published in the Australian Financial Review came from an internal memo, not a letter to Governments, as reported by the newspaper.

"It was an internal communication and was not intended for external distribution," she said.

Asked if the memo represented the airline's position, she said Ansett's position was the board's position, which was that it favoured Singapore Airlines (SIA) increasing its stake in Air NZ.

Meanwhile, a spokesman for Mr Anderson said the Australian Government had the best interests of both Qantas and Ansett in mind.

"At the end of the process, it wants both national carriers to be in a strong and competitive position."

Mr Anderson met New Zealand ministers in Wellington last week, when he went in to bat for Qantas, warning that the SIA proposal would potentially create a regional "behemoth".

The news report said the Ansett document accused Mr Anderson of getting Qantas' interests confused with Australia's national interests.

Ansett claimed that the Qantas arguments backed by Mr Anderson were "totally spurious, hint of protection and cannot be allowed to prevail".

It said Mr Anderson's support for Qantas was an "extraordinary development" and "dangerously anti-competitive".

"Masking commercially expedient Qantas decisions as 'national interest' is short-sighted and high-risk," it said.

"The QF [Qantas] interest and the public interest in Ansett's future are not the same."

Ansett said it could not afford an unnecessary further delay in resolving its future and "every state and territory has a public interest in a healthy, viable Ansett".

It said the Singapore proposal was about competitive recovery, not competitive imbalance, adding that Qantas already had a "stranglehold" on major international routes to Australia.

Qantas is seeking a 25 per cent stake in Air NZ in what it has described as a "partnership".

Under the deal, SIA would sell its own 25 per cent holding in Air NZ, while buying Ansett, which needs a fleet upgrade estimated at $3 billion to $5 billion over the next few years.

But SIA is instead seeking New Zealand Government approval to lift its Air NZ stake to 49 per cent and has the backing of the Air NZ board and management.

- NZPA

Southern Skies Properties Limited

Air wars - the cast list

www.nzherald.co.nz/travel