Cabinet paper

Cabinet Paper DEV-21-SUB-0253: Air New Zealand Capital Raise

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Cabinet Paper DEV-21-SUB-0253: Air New Zealand Capital Raise#


1Air New Zealand (Air NZ) intends to undertake a capital raise, including new equity and debt, in early calendar 2022. The size of this capital raise, and as a result the amount of any Crown contribution, is subject to change as Air NZ’s financial position may change.

2This paper asks Cabinet to:

2.1confirm the Government’s objectives for its ownership stake in Air NZ,amend the terms on which the Crown is providing support to Air NZ, ahead of the capital raise, to provide a bridge to the capital raise, including the establishment of the ability for the Crown to subscribe for up to $1,000 million in non-voting redeemable shares in Air NZ,

2.2provide approval for the Crown to participate in the capital raise so as to maintain a 51% ordinary shareholding in Air NZ and thereby achieve the Government’s objectives, and

2.3delegate authority to the Minister of Finance and the Associate Minister of Finance (Hon David Parker) to finalise the terms of the Crown’s involvement in an Air NZ capital raise, subject to a financial range as outlined in this paper.