Air NZ sells Safe Air subsidiary to Airbus; no jobs losses expected
Air New Zealand said it wasn't expecting any job losses as a result of the sale of its Safe Air engineering subsidiary to European aerospace giant Airbus Group.
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Air New Zealand said it wasn't expecting any job losses as a result of the sale of its Safe Air engineering subsidiary to European aerospace giant Airbus Group.
In a statement, the national carrier said it had signed a conditional agreement to sell the wholly-owned subsidiary to Airbus Group Australia Pacific, which is a major supplier to the Australian defence forces and civil helicopter retailer. The value of the deal, which is expected to be completed next month, is being kept confidential. Air New Zealand didn't advise the NZX or ASX about the sale, typically a sign that it doesn't meet the stock exchange's test for "material information."
Safe Air does upgrade and maintenance work for the Royal New Zealand Air Force and other military and commercial aircraft operators around the world. It has 190 employees across its main facility in Blenheim and its air bases in Ohakea, Whenuapai and Morrabin in Melbourne, Australia.
Air New Zealand has been exploring opportunities for some time to sell the business, which was regarded as non-core.
Chief operations officer Bruce Parton said the company's history with Safe Air spanned more than four decades and it was important that its future success was ensured.
"Airbus Group is highly regarded in the aviation industry and, as a world-class military service provider, is closely aligned with the services Safe Air undertakes," he said.
Airbus Group Australia Pacific employs more than 1400 staff at 15 sites across Australia and New Zealand.
"Safe Air's reputation, skill set and outlook are all strong and closely align with Airbus Group. We've worked with Safe Air in the past and, for us, bringing the company into Airbus strengthens our position and potential in New Zealand," said Jens Goennemann, managing director of Airbus Australia Pacific.
Air NZ shares rose 0.4% to $2.50.
(BusinessDesk)
Fiona Rotherham
Mon, 22 Jun 2015
Mon, 22 Jun 2015
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Air NZ sells Safe Air subsidiary to Airbus; no jobs losses expected
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