Air Transport World

Qantas to pour NZ$550 million into ANZ. (News Briefs).(Air New Zealand)(Brief Article)

Qantas plans to invest up to NZ$550 million ($274.4 million) for a 22.5% stake in Air New Zealand. The long-awaited alliance is expected to face stiff opposition in some political and industry circles and the Australian Competition and Consumer Commission indicated it may be anticompetitive. It also is subject to approvals from the NZ government, regulatory authorities and shareholders. However, CEO Ralph Norris warned that ANZ could be forced to withdraw from international operations and be reduced to a "minnow" within five years if regulators block the alliance.

The carriers said the partnership will deliver combined benefits of up to NZ$450 million by the third year. As part of the deal, Qantas will support a rights issue to raise a further NZ$200 million in 2003. …

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