- While COVID-19 continues to toy with the global aviation sector, Air New Zealand (AIZ) has received government support for a proposed financing
- In a letter, Finance Minister Grant Robertson outlined a number of reasons why Air New Zealand’s continued success was important both economically and socially
- The New Zealand Government holds a 52 per cent stake in the airline and will seek to maintain its majority ownership
- Last year, the government extended a NZ$900 million loan (roughly A$839 million) to help support the business
- Air New Zealand is down 2.02 per cent to $1.46 per share
While COVID-19 continues to toy with the global aviation sector, Air New Zealand (AIZ) has received government support for a proposed financing.
In a letter published today, New Zealand’s Finance Minister Grant Robertson said the continued success of the airline, which has been hit hard by the pandemic, is important both economically and socially.
He added that Air New Zealand was key in supporting the country’s international tourism and export industries, environmental sustainability, and the employment of many workers in the country.
The government holds a 52 per cent stake in Air New Zealand, and will seek to maintain its majority interest.
“Subject to Cabinet being satisfied with the terms of the company’s proposed equity capital raise, the Crown would participate in that capital raise in order to maintain a majority shareholding,” Robertson said.
Last year, the government extended a NZ$900 million (roughly A$839 million) loan to help support the business, which may be converted into equity. However, it’s not known if such a conversion will be part of the upcoming financing.
Air New Zealand has been engaged in an extensive review of its operations, fleet, operating cost structure and capital requirements, and analysts suggest that the airline may need to raise between NZ$1 billion (roughly A$930 million) and NZ$1.5 billion (roughly A$1.4 billion).
Air New Zealand is down 2.02 per cent to $1.46 per share at 3:56 pm AEDT.