Freightways to conduct due diligence on Origin

WELLINGTON - Ailing airline Origin Pacific has granted listed freight operator Freightways exclusive rights to conduct due diligence on Origin's air-freight business, The Dominion Post reports.

Nelson-based regional airline Origin closed its passenger services on Thursday after time ran out to find more than $5 million in capital to keep flying.

Freightways is understood to have several weeks to complete its analysis of Origin's books before making a decision whether to buy it.

Freightways managing director Dean Bracewell would not comment on "speculation" that the company was interested in Origin's freight business.

The freight business largely consists of the rights to the cargo space on Qantas domestic Boeing 737 services and a nightly Qantas 767 freighter between Auckland and Christchurch.

Origin founder and managing director Robert Inglis said on Friday that several parties had been given the rights to conduct due diligence on the freight business.

Shareholder Mike Pero also announced on Friday that he was prepared to take over the freight business, and pay the cost to keep it operating in the short term.

Mr Pero said he had been barred from conducting due diligence, so could not take his offer further. He said he had the support of Qantas for his bid.

The value of the freight business was falling by the hour, and a decision on its future had to be made in the next two days, he said.

Mr Pero paid $2 million for a 25 per cent stake in Origin in 2004. He put in another $1 million about 18 months ago through a secured loan.

- NZPA