After months of speculation, Singapore Airlines (SIA) has confirmed interest in taking an equity stake in Ansett Australia.
The airline released a speech made at the University of Melbourne by SIA deputy chairman and chief executive Cheong Choong Kong, in which he tacitly refers to an interest, while stopping short of an open admission.
Cheong says that Australia is central to SIA's expansion strategy, adding: "There is no doubt that Ansett is a quality airline with a strong brand, excellent management and considerable potential.
"You must forgive me if I opt to adhere to company policy of not commenting except where there is indeed an interest, and the time is ripe to announce it. Of course - and here it can be reported that I'm speaking with a smile -you can consider the enthusiasm I've been displaying over Ansett, and draw your own conclusions."
The two carriers and Air New Zealand announced a major alliance in the middle of 1997, sparking speculation on the possibility that SIA might opt for an equity stake.
Australian regulators cleared the alliance in September, but neither carrier has previously commented on the possibility of an equity sale.
At present, Ansett's ownership is divided 50-50 between Air New Zealand and media tycoon Rupert Murdoch's News Corporation. Cheong says that the partnership is developing well, giving the Singaporean carrier better access to Australian and New Zealand domestic traffic, while the Antipodean carriers tap into expanded international markets.
Source: Flight International
