NZ stocks: Airline report to take spotlight

By ELLEN READ

Air New Zealand opens itself to scrutiny today as it releases a report on "The competitive effects and public benefits arising from the proposed alliance between Air NZ and Qantas".

The report, from Australia's NECG (Network Economic Consulting Group), is part of the Air New Zealand and Qantas application to the Commerce Commission and the Australian Competition and Consumer Commission, being lodged today.

Simon Botherway, of Brook Asset Management, is sceptical.

"Three weeks and one report is not sufficient to ascertain whether [the deal] is in the national interest," he said.

He will be looking to see what benefits are put forward and whether the report details the costs to tourism and business of having a monopoly of the country's domestic air routes.

Brokers say the information filed by the airlines today is likely to provide the biggest news for the week, but that Telecom, and its subdued share price, will continue to dominate market direction.

The already pressured Tranz Rail meets unionists tomorrow over workers' demands that freight trains follow the same rules as passenger trains and reduce speeds and check tracks when temperatures are high, which raises the risk of buckled tracks.

As this would slow the movement of freight aroundthe country, the company is not thrilled with the idea.

On Friday, the markets will be watching the potentially contentious PPCS annual meeting to see if the normally compliant shareholders decide to shake up the board and executive team over the questionable attempt to take over North Island meat company Richmond.

Electronic Transaction Technology shareholders also meet on Friday to vote on whether the struggling tech company, formerly e-phone, should retreat to its Australian home.