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Australian politicians warm to Singapore Airlines
Australian Prime Minister John Howard said Sunday he would welcome investment by Singapore Airlines (P.SAL) in the financially stricken domestic carrier Ansett.
Australian Prime Minister John Howard said Sunday he would welcome investment by Singapore Airlines (P.SAL) in the financially stricken domestic carrier Ansett.
Keen to find a strong competitor for Qantas Airways Ltd. (A.QAN) in the
domestic market, Howard said his conservative government have supported plans
for SIA to obtain a stake in Ansett for some time.
"We wouldn't be opposed in principle to that at all," Howard told reporters on the second day of the federal election campaign.
"There is talk of Singapore being interested, and if that comes to fruition then that's good," he said. SIA, which failed to buy a 50% stake in Ansett last year before its financial plight and problems with its aging fleet became apparent, is one of six potential buyers. But along with a management buyout group including Ansett pilots and engineers, it is the only potential buyer to have publicly put up its hand.
Melbourne businessmen Lindsay Fox, who runs a large road transport fleet, and retailer Solomon Lew are also believed to have conducted due diligence on Ansett but haven't confirmed their interest. The administrators of Ansett held talks this weekend with SIA executives, with the focus on SIA providing consultancy work for an "Ansett Mark II" that the administrators hope will emerge in the next month of so. Under this plan, Ansett is expected to retain the key Australian east coast routes of Melbourne, Sydney, Brisbane with its Being 767 fleet intact, and sell regional and international routes.
"SIA would also have the opportunity to provide management and to take up equity at a future date at its option," the administrators and SIA said in a joint statement. After having its 25% stake in Ansett's owner, Air New Zealand Ltd. (A.AIZ), slashed to less than 5% by the NZ government bailout last week, SIA said it is keen to investigate its options with Ansett.
Bureau Report
"We wouldn't be opposed in principle to that at all," Howard told reporters on the second day of the federal election campaign.
"There is talk of Singapore being interested, and if that comes to fruition then that's good," he said. SIA, which failed to buy a 50% stake in Ansett last year before its financial plight and problems with its aging fleet became apparent, is one of six potential buyers. But along with a management buyout group including Ansett pilots and engineers, it is the only potential buyer to have publicly put up its hand.
Melbourne businessmen Lindsay Fox, who runs a large road transport fleet, and retailer Solomon Lew are also believed to have conducted due diligence on Ansett but haven't confirmed their interest. The administrators of Ansett held talks this weekend with SIA executives, with the focus on SIA providing consultancy work for an "Ansett Mark II" that the administrators hope will emerge in the next month of so. Under this plan, Ansett is expected to retain the key Australian east coast routes of Melbourne, Sydney, Brisbane with its Being 767 fleet intact, and sell regional and international routes.
"SIA would also have the opportunity to provide management and to take up equity at a future date at its option," the administrators and SIA said in a joint statement. After having its 25% stake in Ansett's owner, Air New Zealand Ltd. (A.AIZ), slashed to less than 5% by the NZ government bailout last week, SIA said it is keen to investigate its options with Ansett.
Bureau Report