As widely expected Qantas is to become a new part-owner of Air New Zealand. Under a deal announced this afternoon the Australian carrier is to take a stake of 22 and a half per cent in its New Zealand counterpart - at a cost of 550 million dollars. Under the agreement the Government's holding in Air New Zealand will be cut from 82 per cent to to around 64 per cent. The Managing Director of Air New Zealand, Ralph Norris is assuring passengers the move won't monopolise the domestic market and lead to higher airfares. CUT And the Qantas Chief Executive, Geoff Dixon says without such an alliance both Qantas and Air New Zealand could face uncertain futures. He says the new airline grouping will work on competing internationally. CUT
We're joined now by Air New Zealand's chairman, John Palmer. LIVE
The proposal needs the approval of the Government and the competition watchdogs on both sides of the Tasman.
It's already prompting fresh concern from Virgin Blue, which has been considering entering the New Zealand market. The airline's commercial head, [illegible] Huttner, says he will be taking the issue up with both the Commerce Commission in this country and the Australian Competition and Consumer Commission. CUT
And the National leader, Bill English says the proposed deal between Air New Zealand and Qantas will effectively mean they become one airline and bring about an end to domestic competition. CUT The Government says it won't make any decision on whether to back the agreement until the middle of next month. The Transport Minister, Paul Swain is responsible for the national interests aspects of the deal - and he is with us now, LIVE
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The private murder prosecution of Senior Constable Keith Abbott began its second week in Wellington with the Judge announcing that the Police Officer would only be facing the charge of murder and NOT the alternative charge of manslaughter. The Constable is on trial for the murder of Waitara man Steven Wallace who he shot in an early morning confrontation in April 2000. The prosecution has been brought by Mr Wallace's family, while Abbott maintains he fired in self defence. Our Court Reporter Merle Nowland is following the case [illegible] joins me now. LIVE WITH DROPINS
Several new New Zealand films may be shot here next year in co-productions with British producers that would reap the film industry millions of dollars. The Film Commission says following a recent visit by a group of European producers, five movies are in the pipeline with combined budgets of around one hundred million dollars.
Liz Banas has the story. PKGE
In Solomon Islands, a senior political adviser is fighting for his life after he was gunned down in his home, amid worsening tension in the Pacific nation. Robert Goh, an adviser to Prime Minister, Sir Allan Kemakeza, was shot while getting into his car in his driveway on Saturday night. A day earlier a policeman from the island of Malaita was killed when he was ambushed during a police operation to capture the warlord Harold Keke.
Our correspondent in Honiara, Mary Louise O'Callaghan told me Robert Goh is a controversial figure who was probably targetted because of his position as advisor to the Prime Minister. PREREC
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More now on our main story - and the proposal by Qantas to buy a stake of 22 and a half per cent in Air New Zealand. The idea is going down well with the tourism industry. The Chief Executive of the Tourism Industry Association, John Moriarty says the arrangement would allow Air New Zealand to increase access to key off-shore visitor markets such as Europe by sharing routes with Qantas. CUT But what do passengers themselves make of the proposal?
We're joined now by our reporter, Anna Louise Taylor, at Auckland airport, and our Australia correspondent, Eric Frykberg, who's at Sydney airport. LIVE WITH DROPINS
Wellington investment banker Lloyd Morrison is one of a number of businessmen who've spoken out against a Qantas buyin. He joins us now. LIVE
A fire is still blazing onboard a tanker carrying 20 thousand tonnes of liquefied petroleum gas in Chinese waters east of Hong Kong. The vessels 34 crew members were picked up safely after abandoning ship, but there is the risk of a huge explosion if the fire spreads to the tanks containing the highly flammable gas. Joining us now is the BBC's correspondent in Hong Kong, Damien [illegible]. LIVE
The US war on terror is facing complications. A new report says money from the bank account of a Saudi Arabian princess, the wife of the ambassador to the United States, has been traced to two of the September the 11th hijackers. The Iraqi foreign minister has written to the United Nations with a critique of its resolution on weapons inspection saying the wording on the subject sets Iraq up for failure.
And an interagency task force in Washington is making plans for a new government in Baghdad.
Our Washington correspondent Jessie Brandon reports. PKGE
The trial has begun for a Christchurch dentist accused of indecently assaulting several female patients while they were undergoing treatment.
The man, whose name is suppressed, faces six counts of indecent assault which allegedly took place between 1985 and 2001. Our reporter Katy Gosset has been at court and joins me now. LIVE
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