Air NZ mulls 15% share of Virgin Blue

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markis10

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Its not surprising news that NZ are looking at a 15% investment in DJ, as I have said in other posts, DJ is becoming very quickly another Ansett in many ways, at least running 20 year old 767s wont be an issue for them like it was for Ansett.

I would not be surprised to see an announcement soon for a bunch of new 767's to cover their needs domestically for the next 5-10 years, it will be interesting to see how QF react.

Air NZ mulls 15% share of Virgin Blue

"AIR NEW ZEALAND is believed to be considering taking a cornerstone stake in Virgin Blue to cement its relationship with Australia's second-largest airline.

Aviation industry sources said last night that the government-backed Air New Zealand wanted to buy up to 15 per cent of Virgin Blue, after the airlines appeared to have won indicative support from regulators for their proposed joint venture on services between Australia and New Zealand."
 
... DJ is becoming very quickly another Ansett in many ways, airline.
And this is the problem!

IMO, basing a business strategy around the way things were in this particular industry last century, is going to fail dismally. Ansett's & TAA (Qantas)'s positions were a product of market regulation. Thus the structure of the domestic airline industry in the last decade, of last century, was still a function of that effect.

The collapse of Ansett completely and permanently changed the playing field in Australia, and cemented a new post-deregulation environment, for everyone; players, suppliers and consumers. I would suggest that there is no longer any position for an airline to go "head on" up against Qantas, using a very similar business model (i.e. like Ansett's).
 
Well their previous big investment in the Australian airline industry went so well, didn't it...
 
Aviation industry sources said last night that the government-backed Air New Zealand wanted to buy up to 15 per cent of Virgin Blue, after the airlines appeared to have won indicative support from regulators for their proposed joint venture on services between Australia and New Zealand."

Joint Venture yes, but can't see NZ taking a stake in DJ because any move of that type would require F.I.R.B. approval due to our Aussie Gov't policy, and the Kiwi Gov'ts majority stake in NZ.
NZ would also have to advise the ASX and NZX due to their disclosure obligations.

Cheers Dee
 
If I was John Borghetti, I'd run from away from AirNZ as fast and as far as I possibly could. Sorry, wouldn't trust that bunch of Kiwi's as far as I could throw them.

Apologies to any kiwi's here.
 
Well their previous big investment in the Australian airline industry went so well, didn't it...

Perhaps they can suck all the cash out of DJ as they did with AN (if the rumours are true).

If I was John Borghetti, I'd run from away from AirNZ as fast and as far as I possibly could. Sorry, wouldn't trust that bunch of Kiwi's as far as I could throw them.

Apologies to any kiwi's here.

Exactly what I was thinking. Potentially I don’t think their money is what DJ need.
 
Oh Please :evil:

I have always noticed a "anti-NZ" sentiment on these boards as a result of the Ansett fiasco all those years ago (how many years now??). I think its about time that bitter & twisted aussies forgot the past and move on.

Whatever happens with this NZ potentially buying into DJ thing, I am supportive. NZ is a much different company than what it was ten years ago and DJ doesn't have the fleet challenges that Ansett had.
 
Perhaps they can suck all the cash out of DJ as they did with AN (if the rumours are true).

Oh indeedy, they are true - speaking with due insider knowledge of the debacle. Hapens a lot of NZ takeovers of Aus companies - seems like many NZers have black fingers - as well as highly sticky ones.

Ansett was prrogessively stripped of its assets - and then when it couldn't meet its bills, well, the rest is history! And, mind you, wouldn't have been surprised that if the takeover of Qantas had gone ahead the same scenario had been played out. Divine justive that most of players for that would-be-debacle have now themselves disappeared from the scene!

Interestingly, when Qantas wanted to take a stake in Air NZ - it was stopped as being anti-competitive - wonder if the same forces will push to block the current proposal for the same reasons?
 
If I was John Borghetti, I'd run from away from AirNZ as fast and as far as I possibly could. Sorry, wouldn't trust that bunch of Kiwi's as far as I could throw them. Apologies to any kiwi's here.

There are a whole slue of takeovers and mergers that kiwi businesses have maneged to crash-dive into the financial morgue!
 
Oh Please :evil:

I have always noticed a "anti-NZ" sentiment on these boards as a result of the Ansett fiasco all those years ago (how many years now??). I think its about time that bitter & twisted aussies forgot the past and move on.

Whatever happens with this NZ potentially buying into DJ thing, I am supportive. NZ is a much different company than what it was ten years ago and DJ doesn't have the fleet challenges that Ansett had.

Things may be different to some time ago but the fact of the matter is old wounds don't heal quickly.

So you're probably technically correct that we all should "get over it" and "NZ are different" but a large proportion of people - including the government - will still view this with a sizable level of apprehension, just because it has happened before.

All in all, I don't see why NZ would want a bit of DJ on it's books. Not that I don't oppose the whole thing, but I just don't understand why.
 
I think its about time that bitter & twisted aussies forgot the past and move on.

.

LOL - perhaps that'll happen about the same time the Kiwis "forget the past and move-on" from the underarm ball incident ...... :p:p:rolleyes:



(Full disclosure: I dont think DJ need NZ, nor do I mind if NZ want to invest, particualrly if it leads to DJ being in a true alliance, not just a market agreement as per the current proposal. Nor do I care about past AN issues, nor the underarm ball)
 
Oh Please :evil:

I have always noticed a "anti-NZ" sentiment on these boards as a result of the Ansett fiasco all those years ago (how many years now??). I think its about time that bitter & twisted aussies forgot the past and move on.

Whatever happens with this NZ potentially buying into DJ thing, I am supportive. NZ is a much different company than what it was ten years ago and DJ doesn't have the fleet challenges that Ansett had.

Hello All,

The pain that many of Ex AN, workers, crew, Res staff and the like had to "suck up" and take in Sept. 2001 due to the many factors that killed of AN is now history. The past is what makes us the people we are today. My wife and I both worked for AN. She till the bitter end.

I feel your coment that "I think its about time that bitter & twisted aussies forgot the past and move on." is thoughtless. For many it caused the loss of realonships, there house and a sad few counldn't go on, lost there life. I doubt you were in living Au at the time but rather NZ? So it could be you have NO idea of just how it was for EX An workers back then.

Yes, my wife have moved on. We are not bitter and twisted Australians. I wish Virgin and Air NZ all the best if they join together. All competition is good, for prices, service and frequent flers. It is up customer who they fly with be it Air NZ or Virgin. However for us it will never be on Air NZ or VB.
 
There are a stack of ex Ansett employees at Virgin right now....

Wonder how morale will go there!
 
........<snip> for us it will never be on Air NZ or VB.

I think you made a very eloquent point, although I would like to ask why VB?


(Air NZ I can understand from your post).

Are VB more to blame than QF or NZ ?
 
I think you made a very eloquent point, although I would like to ask why VB?


(Air NZ I can understand from your post).

Are VB more to blame than QF or NZ ?


Hello all,

No VB is no more to blame than QF. However, Air NZ I do feel has some what "dirty hands"

The reason why VB is on our "no fly" list was the sad behavior, of I must stress, only a few VB personal who took great delight at the dying body of AN, in 2001 out at BNE airport. They were and are a disgrace to the airline VB is today. No, I didn't see it first hand but came from a friend that worked for QF. I see no reason to give my travel or business $ to such a person nor company they work for.

VB is a good at keeping the "air fare" as they say. It is good competition for QF that we all must have to keep the best deal for all Australians when flying. VB is a great airline, but sorry, not for my wife and I.
 
I had a family member who worked at AN and as result knew heaps of people effected including one who couldn't handle it.

I've flown NZ since as they are different now but the old management stripped the company bare even taking spare parts in the last days. Basically they run the company into the ground and told the staff to get stuffed and by the way please NZ Government save us for being hopeless.

Would AN have fallen anyway? Maybe but the conduct of the parent company was terrible and the NZ PM comments at the time made it worst.

I rarely think about those events but telling someone to get over it is absolutely the worst thing to say. Sorry for the rant but seeing so many lives destroyed while some smug people got away without immediate consequences hurt many
 
Some interesting reading material on Wiki

Ansett was dead man walking for quite some time, but it is always helpful to blame someone else - particularly if they are foreign. On the whole none of the major players (including both governments) comes out of the fiasco smelling of roses, but after seeing Ansett (and Qantas) murder Compass not once but two times I had absolutely no sympathy for them as an entity.

The tragedy is that behind the corporate face are a lot of staff who are mostly blameless.
 
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