Qantas has severed its last links with Air New Zealand, selling its 19.4% stake in the carrier. Under the terms of the long-delayed trans-Tasman single- aviation market, the move now clears the way for unrestricted Qantas entry into New Zealand domestic operations and for increased competition on international routes.
Qantas managing director James Strong says that the two airlines been "estranged" for some time, a situation which the sale has now formalised.
The holding has been sold for NZ$425.6 million ($297 million) to the ANZ Securities investment group, which says that it has already placed the shares with institutional investors. It would not comment on speculation that airlines had been excluded from buying the shares. Brierley In- vestments remains the largest single ANZ shareholder, with a total holding of 42.5%.
Qantas acquired its ANZ holding in 1988 to head off the possibility of British Airways taking a strategic stake. The Australian carrier, now itself a BA alliance partner, had been entitled to nominate two places on the ANZ board, but these were given to third-party representatives in 1996.
"We had not been actively marketing the shares, but for some time now it has only been an investment for Qantas, rather than a strategic shareholding," says Strong.
Both carriers had been increasingly uncomfortable with the Qantas shareholding, particularly after the ANZ acquisition of TNT's 50% share in Ansett, and had already dissolved all commercial links.
Qantas is now believed likely to pursue initiatives to boost its presence in the New Zealand market, either by entering a joint venture with New Zealand interests, or by negotiating a takeover of Ansett New Zealand, the subsidiary which is still fully owned by Ansett's Australian co-owner the News Corporation.
Source: Flight International
