A debate is brimming over the state’s stake in Air New Zealand following its $40 million half-year after-tax loss.
ACT leader David Seymour came out swinging after the results were released, describing Air New Zealand as, "get woke, go broke".
“It's always been ACT’s policy that the government should only own something if it's got a clear purpose,” Seymour said.
“They do all this other politically motivated stuff, but they can't take off and land on time for a decent price. So there's no purpose. Maybe there's no reason.”
The airline, of which the Government owns 51%, said the loss reflected the impact of ongoing fleet constraints, a slower recovery in domestic demand and rising costs.
Asked about deputy PM Seymour’s comments, Prime Minister Christopher Luxon told reporters on Thursday the Government would have no asset sales “this term”.
Luxon, a former Air New Zealand CEO, would not comment on Air New Zealand’s finances, saying it was inappropriate.
When asked if what Seymour claimed to be “woke” culture started under his time at the helm of the company, he said: “I think you can go look at my track record running Air NZ, it was pretty good”.
NZ First leader Winston Peters wrote on Facebook that while Air NZ needed to improve its timings and get its “often absurd” regional costs down, “calls for the government to sell our shares when the airline market is in a downturn is economic lunacy”.
“Air New Zealand is our national carrier and a national asset. As the majority shareholder, the government should be backing its future rather than dragging it down and hocking it off.”
6 Comments
Heaven knows what NZrs would be being charged for local air fares if Jet Star weren’t here. AirNZ is now not much more than a sink hole reliant on bailouts.
IIRC Air NZ has already been bailed out twice by taxpayers (Ansett & Covid): close to $1B each time. Foran was on ~$4M pa salary.
Sell it while it's still worth something. The global airline industry needs to die before the planet is cooked. Best the NZ taxpayer isn't holding the bag when this happens!
Basic metrics like profit/loss in a given timeframe are not a representation of something's true benefit to the country long term.
There is plenty of alternatives present for international travel as far as people. What is vital to NZ is a reliable and sufficient domestic service and security for its international freight.
DS is not incorrect in some of his statements, particularly about using resources for woke stuff. This in itself does not require the airline to be sold off but it does point to an inactive board no doubt who are quaffing a few single malts after a hectic board meeting. As far as I'm aware the engine problem and grounded aircraft is a huge problem for AirNZ and directly contributes to the losses. I'm sure someone has analysed this in much more detail than my off the cuff analysis.
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