Privatization Analysis & Operating Strategy Development for Air New Zealand

The Challenge

Following the demise of Air New Zealand’s wholly-owned subsidiary, Ansett Airlines, the New Zealand Crown had to decide how to use its “Golden Share” to ensure the stability of its national flag carrier.

Our Role

InterVISTAS led a comprehensive due diligence effort,  evaluated the Government’s strategic options, structured and ran an investment competition between Singapore Airlines and Qantas, developed an “unraveling strategy” for residual Ansett issues, counseled the Crown in its decision-making process.  Our scope included: due diligence, financial modeling, strategic planning, financial restructuring, market analysis, competitive analysis, strategic investor bid structure and road show preparation (including investment memorandum), alliance planning, airport and infrastructure evaluation and strategy, labor policy, securities analysis.

Results

InterVISTAS recommended that the Crown take an 83% stake in the carrier.  That investment has stabilized the airline and delivered more than a four-fold return to the New Zealand taxpayer. Following the Crown’s investment, InterVISTAS led the turnaround of the airline during the transition period.