16 July 2010

ANZ plays down speculation of Virgin Blue stake

Air New Zealand has moved quickly to hose down media speculation that it is considering taking a cornerstone stake in Virgin Blue.

Quoting ââ¬Åâœsourcesââ¬~, The Age in Melbourne has reported that government-backed Air New Zealand was looking to buy a stake of up to 15 percent in Virgin Blue, ââ¬Åâœafter the two airlines appeared to have won indicative support from regulators for their proposed joint venture on services between Australia and New Zealandââ¬~.

In a statement issued in response to the article, Air NZ said it had not purchased shares in Virgin Blue, although it stopped short of ruling out an equity investment in the future.

The statement read, ââ¬ÅâœAir New Zealand advises it has not purchased any shares in Virgin Blue.

ââ¬ÅâœAny such purchase would require FIRB (Foreign Investment Review Board) approval in accordance with the Australian Government policy on foreign investment due to the substantial ownership of Air New Zealand by the New Zealand Government.

ââ¬ÅâœAir New Zealand is conscious that airline alliances such as the one planned with Virgin Blue frequently include an equity aspect, but the proposed alliance does not do so.

ââ¬ÅâœThe necessary regulatory approvals for the trans-Tasman alliance are still in process and Air New Zealand has had no indication of the outcome of this decision.

ââ¬ÅâœA final decision on the alliance is expected by the end of the year.

"As a listed company on ASX and NZX, Air New Zealand is conscious of its market disclosure obligations and in the event of any such investment would advise the market in accordance with those obligations.

ââ¬ÅâœAir New Zealand will make no further comment in regard to this speculation.ââ¬~


By TravelMole Asia

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