When you run a hub system such as those of the Middle East where all aircraft pass through the same you have to have huge stand space and given the latest orders from the likes of Emirates and Etihad one wonders when ground will be broken on airport expansion projects. It is likely that in any event Emirates will have to move operations to Dubai World Central to accommodate all the aircraft on the way.
Meanwhile the 14 years ago the New Zealand government stepped-in to save its flag carrier from collapse and is only now selling off some of that holding. Shares were suspended today as the NZ government announced it is going to sell a 20% stake leaving it with a 53% holding. The 20% stake is valued at NZ$363m at the closing price of NZ$1.65 per share.
But this announcement is a bit of a joke as $363 million will not make a dent in the NZ government plan to raise $5bn. As the government will retain a 53% stake in Air New Zealand after the sale, it will still have the power to appoint the majority of the airline's board of directors. So who is going to buy into that at a premium? One wonders why the New Zealand government did not have the foresight to sell off the carrier totally or at least the majority of its holding and retain a board position. As things are this 20% will command no real say in how the airline is run and it will therefore not attract the attention that it could, or should have. Definitely a missed opportunity to see ANZ align and grow with a strategic suitor in the near term.