Dixon 'optimistic' on Air NZ deal

Qantas chief executive Geoff Dixon believes his airline's proposed shareholding in Air New Zealand is a "very good long-term investment" but does not rule out trying to renegotiate the price for its 22.5 per cent stake.

There has been market speculation in Sydney that Qantas wants to revisit the $550 million pricing structure, though Air NZ has said the price is set in stone.

The airlines have been shaken by the war in Iraq and the Sars virus.

Dixon said he was "quietly optimistic" that competition regulators on both sides of the Tasman would approve the deal.

The New Zealand Commerce Commission is due to release its draft decision today and the Australian Competition and Consumer Commission's interim decision is also expected soon.

Most observers expect the regulators to turn down the deal initially because of anti-competitive concerns, and leave the airlines to give more rigorous undertakings.

"I really do not know, except what I read in the newspapers, and some have been surmising it may be negative," Dixon said.

"Obviously whatever happens there's a round or two to play.

"Until we read and see what their concerns are, if it is negative, I really can't comment about that.

"We've been very open about this as well; we still believe it's a very good long-term investment.

"But there is once again one of those famous lines in the sand ... a point where it's not worth going aboard."

Air New Zealand news