Qantas checking out NZ air space

By DANIEL RIORDAN, Aviation writer

Qantas is believed to be looking for extra aircraft to boost its presence in New Zealand.

A well-placed Australian aviation industry source said Qantas had been talking to aircraft leasing companies about using the planes here.

Qantas has a limited local presence, established soon after the demise of its franchise operation Qantas New Zealand in April.

It flies four Boeing 737s on the Auckland-Wellington and Auckland-Christchurch routes, and has a code-share agreement with Origin Pacific on three other routes to and from Christchurch.

Qantas New Zealand marketing manager David Libeau said last month that his airline had no immediate plans to increase its presence here, though it might switch capacity from its Wellington to its Christchurch route to meet seasonal demand.

He said then that the void in the Australian domestic market left by the original Ansett's demise had placed heavy demands on Qantas aircraft and that remained its priority.

Mr Libeau had not returned calls by press time yesterday and a Qantas spokesman in Sydney was unable to confirm or deny Qantas' plans for the New Zealand market.

Qantas has ordered 15 new 737s for the Australian market, and it may be that some of its existing fleet in Australia will be freed for New Zealand use.

Depending on the terms of the leases for those aircraft, some renegotiation to allow them to fly outside Australia may be required.

Qantas' plans for the domestic market are likely to feature at tomorrow's meeting between chief executive Geoff Dixon and Finance Minister Michael Cullen.

Both men yesterday emphasised that talks about Air New Zealand were off the agenda.

Prompted by media speculation that Qantas might look to engage the Government on Air New Zealand's ownership, Dr Cullen has made public the ground rules for the meeting, called at Mr Dixon's request.

In a letter to Qantas written yesterday, Dr Cullen writes: "Seeing that no formal agenda items were suggested, I have worked on the presumption that the meeting is in the nature of a general courtesy call and to discuss matters relating to Qantas operations in New Zealand."

Dr Cullen refers to speculation, which he says originated in Australia, that the meeting could address Air New Zealand's ownership and the possibility of Qantas becoming a shareholder.

"I am writing to make it clear, in advance, that I am not prepared to discuss matters that relate to the finances of Air New Zealand, or any other matter relating to Air New Zealand, at this meeting."

Mr Dixon said the meeting had always been intended as a catch-up.

"Any discussion about Air New Zealand is not appropriate while its ownership and future capitalisation are still being progressed by the New Zealand Government."

Dr Cullen has indicated that the Government intends being a long-term majority shareholder in Air New Zealand but would be prepared to allow another airline to take a cornerstone stake.

Air New Zealand shareholders meet tomorrow in Auckland to vote on key elements of the Government's $1.04 billion rescue package for the national carrier, under which the Government will take an 82 per cent stake.