Cullen puts pressure on Air NZ partners

By FRAN O'SULLIVAN

Finance Minister Michael Cullen is putting public pressure on Air New Zealand's major shareholders as Government negotiators try to finalise a major bailout package.

Air New Zealand's major shareholders - Singapore Airlines and Brierley Investments - have been standing firm over the terms of any capital contribution they might make to the bailout.

But Dr Cullen yesterday repeated his warning that the Government was clear on its priority - to ensure the "viability of an Air New Zealand".

"I've continued to use that phrase for some time now, but that remains the Government's central overriding objective."

A range of options has been prepared by negotiator Rob Cameron, but Dr Cullen said yesterday that the Government could not force decisions out of certain other parties.

"We can present proposals and hope they agree."

Unconfirmed speculation suggests one of the options could be for the Government to buy all or part of BIL's 30 per cent stake.

Dr Cullen said the Government expected to make an announcement on the airline's future within the next few days. "Negotiations are moving along."

The Air New Zealand board was yesterday put on notice to expect a late meeting to discuss a proposed shareholders' agreement and a range of options to raise capital.

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