Ansett flight tit-for-tat

By DANIEL RIORDAN

Air New Zealand has responded to the Australian Government's backing for Qantas with a little tit-for-tat talk of its own.

Chief executive Gary Toomey yesterday told reporters in Canberra that the national carrier would be forced to look at cutting its regional Ansett services in Australia if the New Zealand Government refused Singapore Airlines permission to lift its stake in Air NZ.

Singapore wants to lift its stake from 25 per cent to 49 per cent but needs New Zealand Government permission to do so. The Australian Government favours a counter-proposal from Qantas that would lead to its becoming Air NZ's 25 per cent partner. Singapore would take over Ansett.

Mr Toomey said the Qantas deal was one that could be looked at but was not available to Air NZ "at the moment".

Air NZ directors this week reaffirmed their unanimous support for the Singapore bid, although they are prevented from considering the Qantas alternative under a memorandum of understanding signed with Singapore. Both Governments are considering the proposals.