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Air Denies Asset Stripping Ansett
Air New Zealand will vigorously defend itself against any allegation that it stripped assets from Ansett Australia, says the Managing Director of Air New Zealand, Ralph Norris.
"We are disappointed to see the Ansett administrators reviving allegations of asset stripping and inappropriate charging after reaching agreement with us to settle all claims between Ansett and Air New Zealand," Mr Norris said.
"The allegations are nothing more than groundless rumours which were circulated when anger over the loss of Ansett was at its peak. We refuted them at the time, and continue to do so.
"Air New Zealand knows of no grounds for action against our company by the Ansett administrators, and will be asking them to provide us with their reasons for advising creditors that this matter justifies further investigation.
"For the record, we repeat what we said about the allegations in September last year. It remains the position of Air New Zealand," Mr Norris said.
ALLEGATION: Air New Zealand put $A200 million of its aviation fuel bills through Ansett's accounts.
FACTS: The two airlines bought fuel on a competitive tender basis from oil companies at various airports, combining their purchasing power to get the best prices, but each airline had a separate account and oil companies billed the airlines separately based on aircraft registration numbers which identified the correct airline to be billed beyond doubt.
ALLEGATION: Air New Zealand grabbed Ansett jet engines and spares and flew them to New Zealand.
FACTS: Ansett leased a Canadian Boeing 767 which went to Air New Zealand's Christchurch engineering depot to be prepared for Ansett, since Ansett's engineering department was overloaded. The engines needed reconditioning. Air New Zealand replaced them with two fully reconditioned Air New Zealand engines to get the planes into the air, earning money for Ansett as quickly as possible. The original Canadian engines are being refurbished at Air Canada's expense and will be swapped for the Air New Zealand replacement engines shortly. Two other Air New Zealand engines are currently at the Ansett facilities in Melbourne - one is used by Ansett engineering in the recalibration of their engine test cell, the other is held in reserve to provide support for Air New Zealand's operations to Australia, or to assist any other operator needing support.
Arrangements to exchange engines and other rotable parts are usual - even among competing airlines - and were made in this instance to gain the best possible outcomes for both Air New Zealand and Ansett. Normal commercial terms applied to this exchange of services between the two legal entities.
ALLEGATION: Air New Zealand improperly cleared out Ansett bank accounts in the last few weeks before a Voluntary Administrator was called in.
FACTS: Air New Zealand funded Ansett losses from the time it obtained a 100% shareholding in the company. The amounts advanced to Ansett by Air New Zealand fluctuated during the year as money was advanced to allow Ansett to make loan repayments and fund losses. Some repayments were made to Air New Zealand after Ansett refinanced unencumbered aircraft in its fleet. When Ansett went into voluntary administration on September 14 it still owed Air New Zealand more than $A80 million under the funding arrangements to cover its losses.
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