Air New Zealand Lowers its Cost Base to Minimize Losses | NZ Market Update

The acquisition of the North Island animal rendering assets of Wallace Group GP Limited (Wallace) is facing an inquiry by the commerce commission in lessening the competition in any relevant market in the breach of section 47 of the Commerce Act. The Commission shall examine whether the acquisition is likely to have primarily reduced competition in any related market as Glenninburg and Wallace both have shares in businesses that execute animal materials into finished products. The Commission did not get an application for approval for the acquisition, which was completed on or about 8 June 2020.

Air New Zealand Limited (NZX:AIR) has reported a loss before other significant items and taxation of $87 million in FY20, as compared to earnings of $387 million in the previous year. In the first six months, the company reported a strong interim profit of $198 million; however, due to travel restrictions, the total passenger revenue from April to the end of June decreased by 74% as compared to the previous year. To preserve the company’s liquidity and to manage the impact of Covid-19, the company has decided not to declare a final dividend this year.

The Commerce Commission received a clearance application from Pact Group Holdings Limited (Pact) ( a packaging solutions business) to acquire both business as well as assets of Flight Plastics Limited (a manufacturer of plastics sheets and packaging in NZ and AU) in New Zealand and the packaging-related assets of Flight Extruded Plastics LP in Adelaide, Australia (jointly, Flight). In the kiwi nation, both the entities compete to bestow rigid plastic packaging.

#AirNewZealand #Losses #NewZealand #Kalkine

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