Air NZ sells Jetset travel agency to Heartlink

Air New Zealand said today it has sold its Jetset Retail travel agency in Australia to Travelworld.

Travelworld, a subsidiary of Australian Stock Exchange-listed Heartlink, will buy Jetset for between $A6 million ($NZ7.44 million) and $A7 million, with the transaction to be settled in mid-April, Air NZ said.

The sale is part of an ongoing programme by Air NZ to focus on its core air transport business. It follows the sale of Jetset Business Travel to SYNERGI Travel Australia in December, Air NZ said in a statement.

"Air NZ is keen to ensure a strong, ongoing relationship with the new entity and has signed a long term agreement to become a preferred trading partner of the Jetset Retail business," the airline said.

Shares in Air NZ last traded down two cents at 35 cents.

- NZPA