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Home / Business / Companies / Airlines

Cullen moves to smooth any 'ruffled feathers' of SIA

18 Jul, 2001 10:49 AM2 mins to read

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By DANIEL RIORDAN aviation writer

On the eve of his meeting with Qantas chief Geoff Dixon, Finance Minister Michael Cullen says he has already moved to soothe any potential offence taken by the Singapore Government.He told the Canterbury Manufacturers Association yesterday that there was a risk, heightened by the newness of
the New Zealand/Singapore Closer Economic Partnership, that the Government's tepid response to Singapore Airline's proposal for a greater stake in Air New Zealand could be viewed as "rather unwelcoming."

Dr Cullen said that at his meeting last week with Singapore Airlines (SIA) chairman Dr Cheong Choong Kong, he had compared New Zealand's position with the "very cautious" approach Singapore was taking to the opening up of its banking sector, where it was emphasising the need for significant Singaporean ownership.

He said he again stressed that the Government had three concerns with the SIA bid for a 49 per cent stake in the national carrier - international landing rights, the tourism value of the Air New Zealand brand and competition issues.

Air NZ says it has given the Government assurances on these issues. However, Dr Cullen yesterday told TVNZ's Business programme that assurances could easily be given in advance.

"The question is whether there are ways to ensure that these assurances are met subsequently."

Dr Cullen is due to meet Mr Dixon this afternoon.

Mr Dixon is expected to detail Qantas' counter-proposal to the SIA bid.

This involves Qantas buying SIA's 25 per cent stake in Air NZ, buying and offloading Brierley Investment's 30 per cent stake, and selling Air NZ subsidiary Ansett to SIA.

Southern Skies Properties Limited

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