DC10 spares lack denied

Press, 14 April 1978, Page 18

DC10 spares lack denied

PA Auckland There has been no question of DC 10 spares being withheld from Air New Zealand because of any alleged financial difficulties encountered by the airline. This was made clear by Mr J. L. Warner, New Zealand field service representative for the makers of the DC 10s, the McDonnell Douglas Corporation. He was responding to claims connected with what have been termed “vague rumours” that Air New Zealand and N.A.C. had been merged because Air New Zealand otherwise faced financial embarrassment. The allegations have since been emphatically denied by Air New Zealand. The Labour member of Parliament. for Island Bay (Mr J. E. O’Brien) said recently that, according to Australian rumours, Air New Zealand was S3BM in deficit with either the aircraft’s makers or with bankers who lent, the money to buy the DC 10s. These rumours, said Mr O’Brien, had caused spare parts to be withheld from the airline. Mr Warner said that Air

New Zealand has one of the best credit ratings in the world among airlines. About two months ago, parts had been “stretched pretty thin” but this was a matter of supply and not through parts being withheld, he said. At no stage had the airline’s DClOs been in danger of being grounded through lack of parts.

Air New Zealand is expected to make a net profit of about S7M in the year ended March 31. The National Airways Corporation, in the same period in its last year as a separate entity, is expected to clear more than S4M.

Overseas loans still to be paid by N.A.C. when it was merged on April 1 with AitNew Zealand totalled less than S2OM. Loan repayments budgeted for the current financial year for the domestic airline "total just over S4M. Air New Zealand said on Tuesday that its overseas loan debt at April I was SIS3M and that it was due to pay off about S3OM — about SIOM of it in interest — this financial year. Its [foreign borrowings ' had [reached a peak and were pow (going down.