Brierley has its own rallying cry for Air New Zealand

By FRAN O'SULLIVAN and NAOMI LARKIN

Brierley Investments chief executive Greg Terry has talked up Air New Zealand's shares, saying they would quickly climb to 60c if there was an announcement the airline would continue.

Mr Terry's comments come as the Securities Commission investigates market trades in Air NZ shares following sharp price volatility sparked by comments made by Prime Minister Helen Clark this week.

One market player is sitting on an on-paper profit of $3 million after buying shares at 15.5c on Tuesday. Air NZ shares closed yesterday at 40c.

Mr Terry - who leads Air NZ's largest shareholder - made his price prediction as negotiations on a new bailout plan for the airline yesterday entered the detail phase.

He was questioned about Air NZ's share price during a press briefing in Singapore at 4.30 pm (NZT) to unveil Brierley Investment's $US119.6 million ($297 million) loss for the June 30 year.

"I would have thought that at 30 [cents] it could bounce to 60 fairly quickly if there was an announcement that it will continue and that it will continue with full support," he replied.

The chairman of the New Zealand Stock Exchange's market surveillance panel, Bill Falconer, said last night that the panel would seek immediate clarification on the comments.

Under a rescue plan announced on September 13, Brierley Investments and Singapore Airlines committed $150 million each to a rescue plan, with the Government pledging a $550 million loan. The bailout was conditional on a viable business plan, due diligence and the merging of the airline's share classes.

But Mr Terry said Air NZ needed more than $300 million in fresh equity following the US terror attacks, which have savaged global aviation.

"Air NZ's future as a standalone business is dependent on market conditions and Government support."

Brierley Investments had no idea how the situation would be resolved, he added. But there was no need for BIL to write off its investment in Air NZ.

"It is a monopoly airline with about 80 per cent of the market share in New Zealand ... The prime minister has said there will be an Air NZ."

The airline said last night that good progress had been made on discussions between the Government and major stakeholders.

Opposition politicians yesterday continued to bay for Helen Clark's blood, claiming her "Don't Sell" message to Air NZ shareholders might have put her in breach of insider trading rules.

Mr Falconer said "some significance" was attached to her comments, which had prompted uncertainty justifying the Stock Exchange to put a halt on the market while the panel investigated their import ance.

Meanwhile, advertisements challenging the nation to "collectively pitch in" and save Air NZ have triggered an outpouring of support for the airline.

Breakfast cereal maker Dick Hubbard, who shelled out $26,000 for the ads in the country's major newspapers yesterday, said he has been flabbergasted by the response.

"Absolutely overwhelming. Our phone, fax and e-mail just went non-stop."

In the advertisements, Mr Hubbard appealed to the nation to "stand united, to pledge our commitment to Air NZ" by choosing to fly the airline along with donating air points back to the company.

Responses came from a wide cross section of people and companies who pledged support and money, he said. They included Air NZ staff and the airline's chief executive, Gary Toomey.

An open letter organised by airline staff is scheduled to appear in the country's newspapers today calling for New Zealanders to show their support.

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