Air New Zealand (ANZ) faces a strong domestic challenge from Qantas, which is to boost its in-country fleet from four to seven Boeing 737s. Qantas will set up a New Zealand-based company to fly the aircraft and has applied for a local air operator's certificate for the new Jetconnect subsidiary.
The move is expected to put pressure on the New Zealand carrier and government to review Qantas bid to set up a "partnership of equals" by taking a significant equity stake in ANZ. Ahead of parliamentary elections late last week the opposition National Party called on finance minister Michael Cullen to divulge the Labour government's plans to sell a stake in the carrier.
"Selling a strategic stake in ANZ to Qantas would marginalise the national carrier into becoming a regional airline and a minor player in both the trans-Tasman and international markets," claims the National Party. Earlier this year the New Zealand government committed NZ$1 billion ($488 million) to save the carrier from bankruptcy. ANZ describes the National Party's claim that a deal has been struck with Qantas as "totally incorrect".
The statement followed confirmation that Qantas is setting up Jetconnect as wholly owned subsidiary in New Zealand after its wet-lease contractor Zazu collapsed in March. Qantas has since been operating in New Zealand under its Australian air operator's certificate. The new Qantas-owned airline has advertised for local staff, and is seeking over 80 pilots to replace contract pilots flying leased aircraft under the Qantas banner. The fleet will be locally registered and regulated by the New Zealand civil aviation authority.
Qantas will add four more Boeing 737-800s to current orders in early 2003, and take options for a further four by early 2004.
Source: Flight International
