IFT - Infratil

[Toddy]

Placebo

Re your Com Com comment. Govt owned AIR vs Govt NZ Super Fund, vs Regionl Govt owned Wellington Airport and Regional Govt owned Auckland Airport.

For once the Com Com may not have a view at all! But then again, we all know the Labour Govts view on the other proposed Auckland Airport.

Is there any such thing as having your cake and eating it too.

[zigzag]

Seems like Air NZ has been reconsidering their opposition to Whenuapai. They are now saying they may support it.

[Zaphod]

It may just be a threat.

There are some significant logistical obstacles to overcome before a split between AirNZ's domestic and international operations could occur.

[Toddy]

So, what is AIR upto. Do they want to be buddies with IFT now.
Air New Zealand plunged 21c, or nearly 9 percent, to 214 on news Virgin Blue will announce details about a new domestic airline on Thursday.



Air NZ taking a more positive look at Whenuapai airport

Air New Zealand has been re-looking at basing some operations at Whenuapai air force base, should the West Auckland airport become available for commercial use.

Air NZ, which along with Auckland International Airport (AIA), originally opposed commercialisation plans of the base, said it has had a team looking at possibilities for Whenuapai over the past couple of months.

"The first stage of the team's work has led the airline to form a more favourable view on the possibilities that Whenuapai may offer our domestic operations in the future," Air NZ spokesman Mike Tod said.

"Our next steps are to investigate the issues around the use of Whenuapai as a dual use domestic airport, including Air New Zealand building and owning its own terminal."

The prospect of using the base was raised in 2002 and three years ago Economic Development Minister Jim Anderton said there was nothing to stop a commercial operator using part of it.

Infrastructure investor Infratil, the majority owner of Wellington International Airport, planned to lease part of the Whenuapai in a joint venture with Waitakere City Council.

However, commercialisation plans were put on ice two years ago when the Defence Force said it would not consider any proposal to lease part of the base for commercial use until nearer 2015, when the air force was scheduled to consolidate operations at Ohakea, in the Manawatu.

Infratil, which this month revealed it had teamed with the NZ Superannuation Fund to take a 6% stake in AIA, planned to invest $50m to upgrade Whenuapai's infrastructure, including a passenger terminal.

Tod did not accept Air NZ had revised its position since it was revealed last month that up to eight parties were reported to be interested in bidding for AIA.

Last month, state-backed Dubai Aerospace Enterprise Ltd (DAE) offered to buy between 51% and 60% of AIA, in a $2.6 billion deal.

Air NZ's relationship with Infratil has been fraught because of Infratil's strong opposition to firstly the airline's plan to ally with Qantas, then its code share arrangement with the Australian airline.

NZPA understands Air NZ had top level talks with Infratil when Air NZ's alliance plan with Qantas was scuttled by regulators.
But the talks were called off when Infratil opposed the code share plan that would have seen flights across the Tasman reduced, particularly from Wellington.

Infratil's Tim Brown said Infratil would have welcomed Air NZ to Whenuapai and had offered it favourable terms. He was unaware of Air NZ's renewed plan.

One difficulty for Air NZ is that it uses AIA as its main hub and its regional dominance comes from feeding off other airlines and its international operations that use that airport.

Even with substantially reduced landing fees, a successful operation out of Whenuapai could dilute its success at AIA.

The Defence Force has opposed joint use of the airport, a position that Infratil has been attempting to modify.

The total rebasing of the air force at Ohakea is seen as a diminishing prospect.

Infratil does not believe the development of Whenuapai will significantly undermine the viability of AIA. It argues a second Auckland airport as attracting different carriers and growing the market.

Whenuapai, which is surrounded by housing, is unlikely to become a major airport as resource consents are likely to restrict operations on night operations.

[Toddy]

Infratil upgraded to a 'buy'
By KATE PERRY - The Dominion Post | Tuesday, 21 August 2007

Investment Research has upgraded its recommendation for infrastructure group Infratil from "neutral" to "buy".

A 36c price fall during the past three weeks has pushed Infratil's shares below the research house's target price of $3.37. Together with the NZ Super Fund, Infratil owns a combined stake of 6.2 per cent in takeover target Auckland International Airport. UBS said in a research commentary it did not expect Infratil to launch a takeover bid for the airport, which is the subject of an offer from interests in Dubai.

"Instead we see Infratil as seeking a strategic shareholding and willing to work with any possible acquirers of AIA or the existing management and shareholder base," UBS said.

The research house said there were no major surprises in Infratil's recent result, apart from an earnings loss from its Australian energy business, Infratil Energy Australia, attributed to high wholesale prices. More than half of the loss related to costs from growing customer numbers.

[Caesius]

It always seem to me that when market sentiment dips, Infratil is hit worse than other big companies. Maybe it's because Infratil is not in the public eye so much as Telecom/Air NZ etc etc.

The possibility of a second Auckland airport is quite exciting.

[Romer]

Hey just checking. Does the rights issue only apply to holders of head shares or do B and C warrant holders get some too????

Has the announcement of the rights issue contributed to the slide in the share price or can it all be attributed to market sentiment???

Oooo where's me old icon gone???? I'll try this one

[Toddy]

Heads only.
IFT has gone through a soft patch due to a combination of things, one of which is the capital raising.

There's plenty of scope for improvement in the SP from here.

[QOH]

Would like your opinion, I've got a fair few "B" warrants. I've only just realised they don't participate in the rights issue. Can you see any upside in them at all now? I'm starting to feel pessimistic about their value now. Wondering if I should sell today and just buy heads next week.

[Toddy]

QOH

Sit tight. The warrants exercise price will be adjusted for the dilution of the capital raising. The warrants offer good leverage and IFT management are experts at adding value to the company.

The only downside is that you have to be brave in more volitile times like now.