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AIZ`s Ann:Company Update

Document date:  Fri 28 Sep 2001
Published:  Fri 28 Sep 2001 16:53:18
Document No:  181789
Document part:  A
Market Flag:  N
Classification:  Progress Report - Other

AIR NEW ZEALAND LIMITED                       2001-09-28  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

Air New Zealand has responded to a number of widely reported and
conflicting comments about the company reported in news media and the
consequent trading halt on the Company's shares on the NZSE by asking
the market surveillance panel of the NZSE to suspend the company's
shares in the best interests of the market until a comprehensive
announcement can be made.

The Acting Chairman of Air New Zealand, Dr Jim Farmer, advises that
progress is still continuing to be made in discussions among Air New
Zealand, its major shareholders, the New Zealand Government and other
relevant parties.

Dr Farmer acknowledged that the market is anxious to obtain further
information to establish some certainty about steps to be taken to
recapitalise the company.

"That remains the objective of current discussions, but those
discussions could themselves be prejudiced by premature, incomplete
disclosure," he said.

The discussions were expected to continue over the weekend and would
have to be completed before any announcement could be made by the
company. This is expected to be early next week.

Dr Farmer said that one particular media comment required immediate
correction. This was a very misleading media report claiming that Air
New Zealand had failed to repay an ANZ Bank loan which fell due last
Thursday. The facts are that the loan was replaced by a new loan
facility, agreed with the ANZ Bank. The company has been in close
discussions with all its banks following the write-off of its
investment in Ansett Holdings on 13 September and none of the
company's lenders has recalled any of their loans to Air New Zealand.

Dr Farmer said he had no knowledge of any connection between the ANZ
Bank loan and the resignation by the Chairman of ANZ, Mr Charles
Goode, from the Air New Zealand Board of Directors on the day that
the renewal was agreed.