Singapore Airlines to sell stake in Air New Zealand

Airline Industry Information, Oct 5, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Singapore Airlines (SIA) is to sell its 6.5% stake in Air New Zealand and is expecting to raise around NZD70m from the 37,833,309 shares it holds.

A spokesperson for the airline said that the sale would not affect any operational cooperation between the two airlines and that it is consistent with Singapore Airlines' policy to monetise any non-core holdings.

The 6.3% stake in the airline was originally 25% but was reduced after recapitalisation when the New Zealand government was forced to bail Air New Zealand out of financial trouble. Air New Zealand was seen as a stepping stone to the Australian market for SIA due to its stake in the now defunct Ansett Airlines, reports AFP.

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