Cushing confident over sealing deal for Ansett

By GEOFF SENESCALL

Air New Zealand chairman Sir Selwyn Cushing has confirmed the Business Herald's report yesterday that the airline is close to buying the other half of Ansett Australia from Rupert Murdoch's News Corp.

"I am confident the issues of ownership of Ansett Australia will soon be resolved," he said.

"Negotiations continue and I feel something satisfactory will eventuate. I was in Australia yesterday [Thursday] and I will be going back next week.

"We do believe that we can progress confidently towards conclusion. But there are one or two things that are still to be resolved that are capable of resolution. I am sure and when that is done, I will be in touch.

"I would believe it is possible to be done by Wednesday," he said to coincide with Air New Zealand's interim result.

As far as price goes Sir Selwyn said: "I think we have worked up a solution to resolve the price impasse ... It is an innovative solution."

The purchase will make Air New Zealand one of the top 20 airlines in the world by size.

He said this did not include any other parties.

Ownership of the News stake in Ansett has been up in the air since April of last year when Singapore Airlines tried to buy the holding.

Air New Zealand effectively scuttled the deal by not waiving its pre-emptive rights over the News stake.

Talks did take place between Air New Zealand and Singapore to try and solve this impasse but to no avail.

While Sir Selwyn had not had recent contact with Singapore, he indicated the door was not yet closed.

Brierley Investments, of which Sir Selwyn is chairman, is believed to be open to Singapore buying directly into Air New Zealand.

Brierley is Air New Zealand's major shareholder, owning a 47 per cent stake.

Air New Zealand A shares closed up 7c to 201c yesterday with the B share finishing up 7c at 227c.