Govt may ‘invest’ $30M in airline

Press, 12 February 1982, Page 4

Govt may ‘invest’ $30M in airline

PA Auckland The Government was expected to invest more money in Air New Zealand soon, said the airline’s chairman, Mr R. A. Owens, yesterday. His “state of the nation” statement to staff also suggested there would be fewer lay-offs, if any, resulting from the airline’s drive to return to profitability. Although no details were given by Mr Owens, he said the Government was expected to put another S3OM of capital into Air New Zealand.

This would pay up 15 million $2 shares authorised for the airline, but still unsubscribed to. It would bring the total Government capital investment in the airline to $lOO million. But it is also believed that the airline seeks another $l5 million on top of this, either by loan or by the creatiion of more capital. Mr Owens’ optimistic statement said the injection of extra money depended on

the airline’s being able to attract the Government to invest further, as it would wiith any other lender it sought money from. An American aviation consultancy, S. S. Colker and Associates, is examining the airline’s finances, and Government investment is likely to be influenced by its report. Referring to economy measures, Mr Owens said: “It

is not the intention of the board to lash out in various directions to produce immediateeconomies and engender long-term bad will.” Every step taken by the board would be very carefully considered. The board was deeply conscious of its responsibility to the shareholders — the public — and also to corporate lenders who. in some cases, were unsecured.