ANNOUNCEMENT 20 Mar 2020
On 20 March 2020, the New Zealand government agreed to bail out Air New Zealand with a $NZ900 million (USD 550 million) loan facility.
NUMBER OF INTERVENTIONS
Government of New Zealand, Releases, (20.3.2020), “Govt steps in to protect Air New Zealand”. Available at: https://www.beehive.govt.nz/release/govt-steps-protect-air-new-zealand
Financial Review Newspaper, (20.3.2020), “Air New Zealand bailed out”. Available at: https://www.afr.com/companies/transport/air-new-zealand-bailed-out-20200320-p54c37
On 20 March 2020, the New Zealand government agreed to extend a 24-month loan facility of up to NZ$900 million (USD 550 million) for Air New Zealand within the framework of a debt funding agreement. The decision is taken to allow the company to continue to operate amidst the crisis the aviation industry is going through due to the Coronavirus pandemic.
The New Zealand government owns 52% of Air New Zealand. Concerning the debt funding agreement, Finance Minister Grant Robertson said “Air New Zealand has a unique and critical role in our economy and society… Without this intervention, New Zealand was at risk of not having a national airline… We have acted swiftly to put this loan agreement in place and support our national carrier.”
Concerning the decision, Air New Zealand’s chairman Theresa Walsh said "The government and Treasury moved swiftly to ensure that Air New Zealand had financial certainty as demand for flights domestically and internationally has rapidly fallen due to travel restrictions implemented by countries around the world. The loan facility ensures that Air New Zealand can continue to play a vital role in connecting New Zealanders and our businesses with each other here at home and around the world."