Qantas in talks, but don't mention Air NZ

By DANIEL RIORDAN AVIATION WRITER

Qantas chief executive Geoff Dixon may raise the issue of a cornerstone stake in Air NZ when he meets Finance Minister Michael Cullen on Wednesday, but he is unlikely to find a receptive Dr Cullen.

Qantas spokesman Des Sullivan said the Wellington meeting would be the first between the pair since Ansett's collapse on September 14.

Qantas had requested the meeting to discuss a range of issues, said Mr Sullivan, but declined to comment beyond that.

Dr Cullen's spokeswoman Patricia Herbert confirmed that the meeting was at Qantas' instigation.

"We don't know what they plan to discuss. Michael doesn't plan to discuss Air NZ issues with them or raise with them the prospect of taking up an early cornerstone shareholding in Air NZ."

The same day, Air NZ shareholders meet 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.

Qantas said this year that it wanted to buy a controlling stake in Air NZ rather than see the Government allow Singapore Airlines to increase its stake.

Qantas' counter-proposal was widely criticised as delaying the Government's decision on the Singapore deal to the stage where it was no longer viable.

Dr Cullen has indicated that the Government intends being a long-term shareholder in Air NZ.

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