25 Nov 2013

Air NZ praises Govt's sale of shares in the airline

7:01 am on 25 November 2013

Air New Zealand's chief executive says the Government's selldown of its stake in the airline was well executed but makes no difference to the company's operations.

Christopher Luxon.

Christopher Luxon. Photo: AIR NEW ZEALAND

Speaking for the first time since the Government sold the 221 million shares for $1.65 each, Christopher Luxon says he's more focused on running the business for the long term than on day-to-day fluctuations in the share price.

"I think people when they make investments in businesses and companies have really got to focus on the long-term and the long-term prospects, I think, for Air New Zealand with the growth that exists in the Asia Pacific region is incredibly exciting."

Air New Zealand shares fell as low as $1.525 after the share sale before closing at $1.60 on Friday.

Mr Luxon says he doesn't know what the Australian government is likely to do in response to Qantas' complaints about foreign airlines, including Air New Zealand, supporting Virgin Australia's $350 million capital raising.

Qantas has said the foreign airlines' decision to invest in Virgin's loss-making strategy shows that those airlines aren't subject to the same commercial realities as Qantas.