Air NZ will pay Ansett $150m

Air NZ is to make a $150m pay-out to Ansett and will indirectly provide another $160 million of monies owed by its former Australian subsidiary.

The $150m will is seen as a settlement of claims by the Ansett group against Air NZ.

Air NZ acting chairman Jim Farmer said the airline must rebuild its reputation in Australia, which remains the New Zealand airline's most important offshore market.

Mr Farmer said: “We hope that over time the anger – and I must say some very misdirected criticism at Air New Zealand – that we hope that the anger in Australia at the unavoidable decision to place Ansett into voluntary administrate will evaporate as the facts of the matter unfold.

Mr Farmer said the pay-out was part of an agreement settling all claims between the Ansett group and Air New Zealand.
The New Zealand government will inject $NZ885 million ($728.84 million) into Air NZ.

He said there are conditions to be fulfilled and conditions to be agreed upon before the agreement is put into effect. 3/10/01