Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Govt To Participate In Air New Zealand Capital Raise

The Government is continuing to support Air New Zealand as the majority shareholder by committing to participate in the national carrier’s proposal to raise capital and accelerate the recovery for the airline and the New Zealand economy.

“We are continuing to invest in Air New Zealand and provide stability and certainty as the airline positions itself for recovery and resume services to key international tourism markets and develop new destinations like New York,” Grant Robertson said.

“The Crown has pre-committed to participating in the $1.2 billion equity capital raise by purchasing the number of new shares necessary to retain its 51 percent holding, which is worth up to $602 million. A portion of the capital raised will be used to repay loans it received from the Government during the pandemic.

“It has been an incredibly challenging time for Air New Zealand over the past two years. We have provided significant support to Air New Zealand to recognise its critical role in keeping the country connected to the rest of the world, including the Crown loan facility which has been drawn down by $850 million.

“Air New Zealand has also benefitted from the Government's initiatives to support the wider aviation and transport sectors, including committing at least $620 million on air freight subsidies since the start of the pandemic to move New Zealand goods to export markets and the cancellation of Airways fees and certain passenger related fees.

“In addition, Air New Zealand has, like many New Zealand businesses, benefitted from support through the Wage Subsidy Scheme and the PAYE deferral scheme provided by Inland Revenue

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“We will also provide a standby loan facility of $400 million to ensure financial stability over the next few years. While it is not expected to be drawn upon, it is available to Air New Zealand if needed through to 2026. The arrangements for the facility have been benchmarked against equivalent private sector lending to airlines.

“As a result of the government’s support, our national carrier is in a far stronger position than many other airlines around the world to return to the skies and take advantage of the opportunities that are ahead of it. This resilience is important as we need a national airline to support economic development and provide access to international markets, and to enable the return to international tourism,” Grant Robertson said.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The Flaws In Anti-gang Laws


Google “Christopher Luxon“ and “mojo” and you get nearly 60,000 matching responses. Over the past 18 months – here and here and again, here – Luxon has claimed that New Zealanders have either lost their mojo and/or are in the process of re-finding it. With mojo in hand, New Zealanders will once more become a nation of over-achievers, blessed with the feisty Kiwi can-do spirit of yore.

But here’s the thing. According to Luxon, we’re naturally bold, inventive and self-reliant. Yet according to him, we’re also “wet, whiny and inward-looking”...
More


 
 

Government: GPS 2024: Over $20 Billion To Get Transport Back On Track
Transport Minister Simeon Brown has released the draft Government Policy Statement (GPS) on Land Transport, outlining the Coalition Government’s plan to build and maintain a transport system that enables people to get to where they need to go quickly and safely... More

ALSO:


ACT: New Zealand Dodges Dopey Experiment In Prohibition

“Labour’s attempted crackdown on smokers would have delivered criminal groups a near-monopoly over the cigarette trade,” says ACT Health spokesman Todd Stephenson... More

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.