Air New Zealand delayed its plans to raise equity capital after the government refused to participate over economic conditions.
The cash call was pushed back to the first quarter of 2022, a date after which New Zealand is expected to allow quarantine-free entry for vaccinated travelers from low-risk countries.
This is the second time Air New Zealand’s equity capital raise has been delayed this year. In February 2021 the airline announced an intention to acquire additional capital before June, but the process got delayed due to the government’s refusal to invest.
New Zealand’s government owns a 53% stake in the flag carrier, and has to participate in the capital raise to maintain the majority shareholding.
The second attempt to raise capital was announced in April 2021, as Air New Zealand hoped to attract funds before September.
“Subsequently, the Company received a letter from the Minister of Finance outlining his view that the current environment is not sufficiently certain and stable to enable the Crown to provide a firm pre-commitment to support the planned equity raise at this time,” the company’s statement said.
“In this context, the Company has, in consultation with the Crown, decided to further defer its planned capital raise until the first available window in the first quarter of calendar year 2022,” the statement adds.