Ansett Australia executive chairman Rod Eddington will stay with News Ltd after Air New Zealand's upcoming purchase from the media giant of the 50% of the carrier it does not already own.
Alistair Carthew, Air New Zealand deputy manager public affairs, says from Auckland that Eddington, who is employed by global media giant News Corp's Australian arm News Ltd, will stay with News after the targeted April completion of the buy.
Air New Zealand and News ended months of speculation last week by confirming that the carrier would purchase News's 50% stake in Ansett Holdings for a total of A$680 million ($430 million). Ansett Holdings groups together domestic arm Ansett Australia and international arm Ansett International.
The transaction, which depending on Australian regulatory and Air New Zealand shareholder approval incorporates an initial payment of A$580 million and later one of A$100 million in cash or in shares, came after the carrier blocked an attempt by Singapore Airlines (SIA) to purchase the stake last year.
Air New Zealand used its right of first refusal to block the SIA bid to buy into Ansett, then in the midst of extensive restructuring begun by Eddington immediately upon his appointment as executive chairman of the carrier in 1997.
Carthew says that Eddington "...will continue in his position as executive chairman of Ansett and deputy chairman of News Ltd until the transfer to 100% ownership of the carrier by Air New Zealand is completed".
He adds that on completion of the transaction Eddington will "return to News Group duties" while Air New Zealand managing director Jim McCrea is to be re-appointed as chief executive of the expanded airline group.
Air New Zealand said last week that work would begin immediately on planning the development of a "new Australasian airline system" formed by its ownership of Star Alliance and long-term bilateral partner Ansett.
Source: Flight Daily News
