KEY POINTS:
New Zealand union leaders are closely watching the attempted takeover of Australian airline Qantas by private equity firms, although the deal is expected to have little effect on this side of the Tasman.
Qantas yesterday accepted a $12.6 billion takeover bid from a consortium of firms, which wants
to take the company private if shareholders approve.
Engineering, Printing and Manufacturing Union national secretary Andrew Little said yesterday New Zealand could be affected if the takeover bid succeeded.
The new owners of Qantas, looking to get a return on their investment, could seek to further cut costs, he said.
"The nature of private equity takeovers of big companies like Qantas is that they absolutely squeeze the business on cost at every front," Mr Little said.
"I would expect there will be an impact. How quick that happens I'm not sure."
Cashed-up Australian private equity firms are on the prowl for acquisitions.
Often their pattern of business is to buy a company, take it private, get it into a better position, and then sell it.
The consortium trying to take over Qantas has said it will support the airline and invest in it with a long-term view.
Mr Little dismissed that, saying "you don't look at what they're saying, you look at what they do".
Qantas runs a domestic service in New Zealand which acts as a feeder for its Tasman flights and other international routes out of the country.
Mr Little said he doubted Qantas would pull out of New Zealand altogether.
It could instead look to operate its low-cost Jetstar brand here.
He said the Qantas operation in New Zealand was "pretty skinny" and there may not be a great deal the new owners could do to it.
Aviation experts agreed, and said they would expect a takeover of Qantas to have virtually no effect in New Zealand.
The new owners would be focused on other international routes, and any change in New Zealand or on the Tasman would be well down their list of things to do.
"I can't see it having any effect on the basic operation of Qantas or Air New Zealand at this time," said aviation commentator Peter Clark.
"It's still a long way off being bought yet."
Centre for Asia Pacific Aviation chief executive Andrew Miller said he expected no change in New Zealand if the deal went ahead.
Qantas and Air New Zealand would still be subject to the same regulatory controls.
He expected Qantas to retain a domestic presence in New Zealand, possibly by introducing Jetstar - although that was an existing strategy and not new.