2.21 pm
Air New Zealand says it will defend its markets vigorously against any Qantas attack.
"Threats from Qantas are nothing new for us," says Air New Zealand Chairman John Palmer, responding to reports that Qantas intends putting the New Zealand carrier out of business.
"The only surprise this time is that they
are actively seeking a damaging and costly battle on two fronts - with the imminent introduction of additional competition from a revived Ansett in their home market, and stronger competition offshore from a recapitalised Air New Zealand."
Mr Palmer says Air New Zealand has been preparing over the last three months for more aggressive competition.
"Our senior management has been formulating new business strategies, work that was initiated last year and, by coincidence, it is meeting again today to continue that process. Naturally, we aren't going to signal our intentions — but you can expect to see us rolling out the results over the next few months.
"The company has also secured additional capital from its share sale to the Government. We have repaid all our unsecured borrowings. We had about $420 million in the bank last Friday, and we have just signed heads of agreement with a new banking consortium to obtain significant new facilities."
Mr Palmer noted that the comments about putting Air New Zealand out of business were reportedly made some weeks ago, and that the Chairman of Qantas is now denying them.
