Origin Pacific halted passenger services last month and has failed to sell its freight business. Picture / Bay of Plenty Times
As shareholder Mike Pero announced he would start his own freight business, regional airline Origin Pacific announced yesterday that the airline will be wound up after failing to sell its profitable freight division.
Pero had wanted to buy the freight division but said he had lost interest in the protracted
negotiations and would instead start Pacific Express Airfreight.
Freightways - which had also wanted to buy Origin Pacific's freight arm - stepped in on Friday to offer services to Origin Pacific's clients and employment for staff.
Dean Bracewell, Freightways managing director, declined to discuss the failed sale of the freight arm.
"What we're currently doing is trying to provide continuity of employment for any staff that were associated with Origin in our own business and provide continuity of service for their customers," he said.
Bracewell said the arrangement was an "interim solution" for Origin customers and next week Freightways would confirm long-term plans.
"At the moment we're just concentrating on keeping people working and keeping customers' freight moving," he said.
Nelson-based Origin Pacific yesterday announced it had been grounded for good and is now taking advice on winding the company up.
The airline halted passenger services last month but had hoped to find a buyer for its freight service.
In a statement Origin Pacific said: "Several parties expressed interest and undertook a due diligence process, two parties placed conditional offers.
"The company was unable to negotiate mutually satisfactory terms and conditions in the time it had allowed for the process to be concluded."
Pero said he expected his new freight business would challenge existing players and grab a sizeable chunk of the market.
Companies Office records show Pacific Express Airfreight was registered in February 2004.
Pero is listed as its only director and sole shareholder.
