Air NZ offered to help prop up its rival

By EUGENE BINGHAM and JAN CORBETT

Air New Zealand offered Qantas New Zealand assistance during desperate negotiations to keep the plummeting airline airborne.

The national carrier confirmed yesterday that it had agreed to give Qantas "significant relief" over the mounting debts owed for the leasing of eight planes owned by the Air New Zealand subsidiary, Ansett Holdings.

Air New Zealand's offer was part of a rescue package by corporate trouble-shooter Michael Stiassny that was designed to make the company a more attractive buy for Qantas Airways of Australia.

But when word of the receivership broke last Saturday morning, Air New Zealand swept in to retrieve its planes from Qantas NZ. It is now locked in a legal battle to recover aircraft documentation and spare parts.

Ansett Holdings filed an injunction in the High Court at Auckland on Thursday. The proceedings were held over to allow time for negotiations between Air New Zealand and the receivers, Mr Stiassny's firm, Ferrier Hodgson.

In the days leading up to the collapse, several creditors agreed to give the ailing company time.

The Weekend Herald has found Mr Stiassny was trying to finalise a rescue package after Qantas Airways withdrew it purchase offer on April 17.

The Australians walked away after executives spent Easter weekend poring over Tasman Pacific's accounts, concerned by an estimated $60 million, 10-year lease deal with Air New Zealand for the eight whisper jets and debts - believed to be up to $100 million.

Tasman Pacific tried to revive Qantas Airways' interest with a deal that included further shareholder investment, but by the evening of April 19, New Zealand creditors, including Wellington International Airport, were spooked when they found out Qantas Airways was not going to buy the airline.

Talks continued on Friday but shareholders could not agree on injecting more money.

In the meantime, Qantas Airways was preparing a contingency plan to rescue passengers and its reputation. It is now contemplating to what extent it will step into the gap left by the receivership.

Qantas New Zealand chief executive Kevin Doddrell said yesterday that he had nothing to add beyond the statement issued by two of the company's shareholders on Thursday night.

In that statement, issued on behalf of shareholders Alan Gibbs and Trevor Farmer, their representative, Rob Campbell, criticised officers of the company for remaining silent.

"We had hoped that over the past few days some of the individuals ... who had been acting as officers of the company would have stepped forward to explain how extensive the efforts were that the directors made to save the airline," it said.

"Their failure to do so is disappointing."