AIR NEW ZEALAND

Singapore Airlines (SIA) wishes to clarify that it has no objection in principle to the New Zealand Government becoming a shareholder in Air New Zealand if options beyond the current proposed package for the carrier need to be considered.

The New Zealand Government and the two major shareholders, including SIA, last week reached agreement on a refinancing package subject to conditions.

It is SIA’s understanding that if the due diligence to be performed on Air New Zealand by the Government and the two major shareholders shows that the structure of the proposed capital injection agreed between the parties is inappropriate for Air New Zealand, then obviously there should be further discussion to see if agreement could be reached on restructuring the terms of the Government’s proposed contribution.

This further discussion would necessarily include all options, including zero coupon debt instruments, convertible securities and common equity.