Qantas Airways is in talks to buy a sizeable stake in Air New Zealand (ANZ), as it seeks to cement its status as Australasia's dominant carrier.
Last year, the Australian airline tried to buy a minority stake as the New Zealand flag carrier's finances deteriorated, but was rebuffed by ANZ's board and the New Zealand government, which later renationalised ANZ. Qantas and ANZ confirm they are discussing equity ties and co-operation. But Wellington has denied direct talks with Qantas.
Local media reports last week suggested Qantas may take a 35% stake and management control, leaving the bulk of shares with the government, which owns more than 80%.
The Star Alliance could see itself frozen out of the region after Australian member Ansett's collapse. Qantas is a Oneworld alliance co-founder, so ANZ would almost certainly have to give up its Star Alliance place.
An NZ$885 million ($421 million) state bail-out of ANZ was completed in January after the carrier failed to raise more cash from shareholders including Singapore Airlines, which then owned 25% but now holds 4%. Analysts say ANZ will need more public cash in the next few years.
Source: Flight International
