Fra Air Transport World:
Singapore Airlines has given up its ambitions to forge a lasting relationship with Star Alliance partner Air New Zealand, indicating that it will sell its remaining 6.5% in the New Zealand flag carrier.
SIA's announcement also signals the loss of another potential buyer for the NZ government's majority stake in
ANZ.
SIA originally acquired its 25% share for NZ$585 million ($394.3 million) as part of a three-way Australasian tieup with
ANZ's Australian arm Ansett. It was pushing to increase its stake to 44% when Ansett collapsed in 2001. Its holding was reduced sharply later that year after it declined to participate in the government's NZ$885 million bailout of
ANZ.
The departure of
SIA comes only two weeks after the proposed alliance between Qantas and
ANZ was dropped following the failure of a High Court of New Zealand appeal (ATWOnline, Sept. 21).
SIA now has the option of pursuing a shareholding in Qantas at the appropriate time, though neither airline believes such a development is likely in the short-/medium term. However, the Singapore carrier's major shareholder Temasek Holdings acquired a small parcel of shares in Qantas following British Airways' recent withdrawal from its 18.25% stake.
SIA's 39 million shares in
ANZ are valued at about NZ$65 million at current market prices. According to
SIA, the shares will be offered via a book-build process to a spread of institutions.
ANZ has halted trading in its stock until 10 a.m. local time today pending the sale