Airline shrugs off Impulse bid

MELBOURNE - Regional Australian carrier Hazelton Airlines says merger talks with Impulse Airlines have been "inconclusive."

Hazelton said takeover offers from Air New Zealand subsidiary Ansett Australia and Qantas Airways represented the "best future solution" for the company.

Budget carrier Impulse had not presented a formal merger proposal.

Impulse said it planned to renew talks with Hazelton in an effort to merge the two airlines' regional operations.

"It is our belief that an alignment of Impulse's and Hazelton's existing regional businesses will produce the optimum competitive outcomes for regional New South Wales air travellers," said Impulse executive chairman Gerry McGowan.

Ansett and Qantas have been involved in a bidding war over Hazelton for the past three months.

Ansett is offering $1.60 a share for the smaller airline, and has secured just over 35 per cent of Hazelton's ordinary shares.

Qantas, with an offer of $1.50 a share, has just over 29 per cent.

Hazelton chairman Stan Quinlivan told the Australian Stock Exchange yesterday that his company has been in discussions with Impulse for more than 12 months.

"These were inconclusive."

Mr Quinlivan described the Qantas and Ansett bids as "serious and commercially acceptable."

These bids are being scrutinised by the Australian Competition and Consumer Commission, which has expressed concerns over either of the majors securing Hazelton.

Mr Quinlivan said the company had been in negotiations with the Qantas and Ansett for more than three months.

"We must move on, and we believe the proposals on the table represent fair and reasonable value for our shareholders and the best future solution for our staff and the people of rural New South Wales," he said.

"If Impulse had a genuine desire for a merger they have had ample time to put forward proposals to Hazelton, and to place any such proposals before the board of this company for consideration."

Hazelton says it is "very concerned" that statements such as the one from Impulse this week could delay the commission's decision.

The company warned that if that were Impulse's motive "it would not be in the best interests of the travelling public or the company."