Singapore Airlines (SIA) has severed equity ties with Air New Zealand (ANZ), four years after buying 25% of the carrier only to see its shareholding quickly plummet in value.
SIA sold its 37.83 million shares or 6.3% of Star Alliance partner ANZ on 5 October for NZ$61.7 million ($41.5 million) via a placement to domestic and offshore institutional investors.
It said the move was "consistent with its strategy to monetise non-core holdings", adding that the airlines' bilateral alliance, which among other partnership activities covers codesharing, "will continue into the future".
ANZ was at one time considered a key investment for SIA, however, as it bought into the carrier in line with its strategy of expanding by taking stakes in foreign airlines. It has been a controversial strategy, however, and now its one key foreign airline shareholding is its 49% stake in Virgin Atlantic Airways.
SIA bought 25% of ANZ in 2000 but its stake was diluted and its value slashed by several hundred million dollars the following year, after ANZ met financial difficulty and a government bailout saw the state acquiring majority ownership.
NICHOLAS IONIDES / SINGAPORE
Source: Flight International
