Rescue for Air New Zealand

The Wellington government announced tonight it would take a major stake in ailing national carrier Air New Zealand, pumping 885 million New Zealand dollars (£253 million) into the airline in two stages.

Finance Minister Michael Cullen said the rescue package a loan and a share buy-in was designed ‘‘to ensure the future viability of Air New Zealand’’.

The Labour-led government’s holding in the carrier will be a maximum of 83%, diluting the shareholdings of the airline’s current major investors Singapore Airlines, which has 25%, and Brierley Investments, which has 30%.