After pinning down its far-reaching alliance with Air New Zealand and Ansett, Singapore Airlines is reaching for its chequebook in preparation for equity investments in Asia-Pacific carriers.
SIA is talking about becoming a part-owner of Ansett, Air NZ or both, according to insiders. At the same time, the carrier is dusting off its plans to take a 40 per cent stake in a new Indian domestic joint venture with the Tata industrial group, amid signs that the Indian government was planning to reverse its two-month-old policy on foreign ownership (see story opposite).
SIA's interest in an Ansett/Air NZ stake is Asia's worst kept airline secret. Though none of the players will officially confirm that negotiations are underway, all three have stopped short of a denial.
Asked about equity when the trio announced their alliance in late June, Ansett executive chairman Rod Eddington said: 'This is not the appropriate time to talk about that.' SIA deputy chairman Dr Cheong Choong Kong said that any announcement on equity 'will come when it will come'.
The three airlines' alliance involves codesharing and other joint activities (see feature, page 28). The Australasian carriers' relationship with United has led to speculation that SIA may sever its links with Delta and Swissair and join the United-led Star Alliance. Air NZ has also announced a partnership with Star member Air Canada.
Tom Ballantyne
Source: Airline Business
