Airline debt ‘to be paid’

Press, 14 June 1983, Page 1

Airline debt ‘to be paid’

PA Auckland The Chilean Government will step in today to pay the debts of the airline LanChile and so preserve a vital Air New Zealand deal; said the chairman of Air New Zealand, Mr R. A. Owens, last evening. “It is not official yet, but that is what will happen,” said Mr Owens, referring to the financial strife which pitched the future of LanChile — and the deal with Air New Zealand — into uncertainty. Air New Zealand leased two of its DCIO airliners to LanChile last June for an undisclosed sum. But now the International Air Transport Association is reported to have suspended LanChile because the airline cannot pay for millions of dollars of tickets sold on its

behalf by other airlines. The suspension seemed to jeopardise the Air New Zealand lease which was planned to run for two years, a right of renewal promised and the possibility of purchase by the Chileans. “I have just got back from Chile and I know the Government is intending to take over responsibility for the debts of the airline,” said Mr Owens. “LanChile, like Air New Zealand, is State-owned. But unlike here the Government is saying it will pick up the airline’s debts. I have been assured this will happen.” As far as he knew the payments being made by LanChile were up to date, and he did not think the suspension meant that LanChile was barred from flying to various parts of the world.