For the second time in 20 years the government has bailed
out Air New Zealand.
Last time was in 2002 when the government stumped up with
$885 million - $300 million in interest bearing equity (preference shares) at
24 cents a share and $585 million in new shares at 27 cents. Interest was paid
in new equity rather than cash.
The effect was the Crown ended up with an 82%
stake. The rescue followed the Company reporting a $1.425 billion loss after
its ill-fated investment in Ansett Australia. It returned to profitability in
2003.
