Threat of competition hits Air New Zealand stock
Shares fall 5 per cent after American Airlines deal with Qantas but travel rep says move would boost overall market. Air New Zealand shares fell by nearly 5 per cent after news that it could face competition on its lucrative direct routes to the United States from the world's biggest carrier, American Airlines. One fund manager said although a lot of water was yet to go under the bridge, the news was not good for Air New Zealand, whose shares fell from $2.81 to $2.67 yesterday. "We think it's one of the better routes that they have. It's not helpful to their profit to have someone else fly on it and I think the reaction in the share price is around this," said Salt Funds managing director Paul Harrison. American Airlines yesterday said it had deepened its relationship with Qantas and the Airlines will lodge an application with regulators here for permission to operate transpacific services from New Zealand. Another analyst said the ne...