Air N.Z. ‘not in trouble’

Press, 12 April 1978, Page 4

Air N.Z. ‘not in trouble’

PA Wellington The Minister of Transport (Mr McLachlan) denied that Air New Zeaalnd was financially embarrassed and that spare parts were being withheld from the airline. He was commenting on a statement by the Labour member of Parliament for Island Bay (Mr J. G. O’Brien) that rumours were circulating in Australia that Air New Zealand was S3BM in deficit with either the Macdonnell Douglas Aircraft Corporation or with bankers who lent money for aircraft purchases. Mr O’Brien, who recently returned from a trip to Australia, said that according to the rumours this had led to the withholding of spare parts from Air New Zealand. “What is equally as disturbing is that Parliament has not been able to examine these questions nor to question the obvious corollary of the Government’s action, which is, was the merger forced by the bankers of the aircraft suppliers to make it possible for a New Zealand asset to be sold off to foreign investors?” he said. “The creation of a public company, certainly lends credence to the rumours.” Another question of importance was whether the pressures of the "iniquitous” travel tax had driven custom away from Air New Zealand into the hands of foreign carriers, Mr O’Brien said. The opinion in some Sydney offices was that many New Zealanders now bought a one-way ticket to Australia and then bought the rest of their air travel there, this wav avoiding the tax. Mr McLachlan said that.

Mr O’Brien’s statement was "irresponsible rubbish of the first order.” “The airline is not financially embarrassed, spare parts are not being withheld from the airline, and the travel tax has not had a noticeable effect on the airline’s business,” Mr McLachlan said. “The credit worthiness of Air New Zealand remains sound, with frequent approaches from international bankers with offers of credit for which Air New Zealand has litle requirement.” Mr McLachlan said that Mr O’Brien’s statement appeared to be based on his general prejudice against a successful international enterprise, Air New Zealand. He was at least the fourth Opposition member to try to wreck the orderly development of Air New Zealand by making unsettling and unfounded statements in the last few months.