Air New Zealand: Stop Dithering
Monday, September 24 2001
Stephen Franks Press Releases -- Commerce
ACT Commerce Spokesman Stephen Franks says it is incredible the Government is still trying to implement an Air New
Zealand rescue package with Singapore Airlines and Brierley Investments as controlling shareholders. "You don't force
the passengers back on the bus with a driver they think is drunk.
"The Chairman of Air New Zealand has said Singapore Airlines may have been acting in interests other than those of the
Air NZ. Michael Cullen confirmed that he has had similar suspicions in response to one of my questions in Parliament
last week.
"What sort of company does the Government think Air New Zealand would be if the 'rescue' goes ahead as planned. How will
it thrive, even if they get the rescue, given: the obvious reluctance of the major shareholders to put in more and the
mistrust staff will inevitably have of the owners.
"The Ministers involved can clearly have never had any experience of trying to rebuild a business culture," Stephen
Franks said. He said the Government should:
Reassure customers that Air New Zealand tickets will be honoured. "Such a guarantee would not exceed any exposure the
Government already faces to keep services going in New Zealand. Maintaining bookings will reduce the exposure, not
increase it. To the extent it is a credit guarantee, any liability can be deducted from the $550m already politically
promised."
Announce that if alleged liability to Australia is unfair, or legally improper, or unlikely to be known promptly, the
airline will be put into statutory management.
Tell SIA and BIL and Qantas that raising ownership caps will be off the table, so that if their strategy includes an
expectation of picking up the airline for nothing from the Statutory Manager, they have miscalculated. "If the airline
is reduced for the present to a New Zealand rump, why commentators would international investment and expertise be so
critical right now? It hasn't helped much over the past two years."
Urgently investigate the history of Qantas, SIA and BIL as partners, shareholders and those appointing directors,
before proceeding any further with a rescue package that could leave any of them with the pickings from the wreckage.
"We have been warned that they may have been using their share holdings for strategic purposes inimical to the interests
of Air New Zealand. Unlike the US, our company law does not impose fiduciary obligations on shareholders, but we should
at least know whether their director nominees acted lawfully. There will be many staff and perhaps even former Board
members who may have interesting insights. Michael Cullen has been naive. Any more talk of giving those shareholders
control of a taxpayer funded surviving business, would compound that naivety," Stephen Franks said.
For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at
act@parliament.govt.nz.