Air New Zealand dismisses report of merger with Virgin Australia – RNZ

Air New Zealand is denying it has been approached or is in discussions with any other airline. Photo: 123RF

Air New Zealand is denying it is in merger talks after a report in The Australian newspaper.

The paper reported the airline and Virgin Australia held recent discussions about a possible merger, with Virgin also looking at acquiring Australian regional carrier Rex Airlines.

However, in a short statement to the sharemarket this morning, Air New Zealand chair Dame Therese Walsh said it has "not been approached, and is not in discussions with any parties, regarding a potential merger transaction".

The airline said it was complying with its NZX continuous disclosure obligations. It declined to provide further comment when approached by RNZ.

The Australian, citing sources, said talks were held between Air New Zealand and Virgin "in recent weeks", but they had not struck a deal.

The paper said the plan would involve a back door dual listing in Australia and in New Zealand of Virgin into Air New Zealand.

Virgin is owned by United States private equity firm Bain Capital.

Bain bought the airline for $A3.5 billion ($NZ3.9b) in 2020 after it entered voluntary administration after Covid-19 decimated the aviation sector.

Air New Zealand has had a long and complicated history with Australia over the years.

Qantas owned a stake in the airline when it was privatised in 1989. In the mid-1990s, Air New Zealand bought a 50 percent stake in the Australian carrier Ansett and took full ownership in 2000.

The merger was a disaster for the airline as Ansett collapsed and Air New Zealand was bailed out by the New Zealand government, which took a majority stake in the company.

In 2011, Air New Zealand bought a stake in Virgin but sold down in 2016.

Just two years later the airline announced a partnership with Qantas for domestic routes in New Zealand and Australia.

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Air New Zealand dismisses report of merger with Virgin Australia - RNZ