Silence from Government and Air NZ raises questions about future ownership

Stuff When Greg Foran started at Air New Zealand as chief executive, Covid-19 was quickly becoming the most significant crisis the aviation industry has ever faced. Drawn-out discussions between Air New Zealand and the Government over the company’s future capital structure could be a sign the airline’s majority shareholder is considering taking a bigger stake, or possibly full ownership, of the national carrier, an aviation expert says. One industry analyst said the airline indicated on a recent conference call that it was unlikely there would be an announcement on its capital structure before the election. Air New Zealand, which two weeks ago posted its first loss in 18 years, is in urgent need of cash, with coronavirus reducing annual revenue from $6 billion to $1b in the 2020 financial year and cash on hand falling from $1.1b to about $200 million. To help it through the pandemic the Government in March provided two loans worth a combined $900m, which the airline could draw on at interest rates ranging from about 7 per cent to 9 per cent. READ MORE:Air NZ’s strong domestic recovery could entice Jetstar to expand in NZ – analystFrom Walmart wonderboy to Air New Zealand: How Greg… Read full this story

Silence from Government and Air NZ raises questions about future ownership have 376 words, post on www.stuff.co.nz at September 7, 2020. This is cached page on Sách Trẻ. If you want remove this page, please contact us.

Leave a comment

Your email address will not be published. Required fields are marked *