The government will provide up to $900 million in loans to Air New Zealand to cushion the impact of the Covid-19 virus.
The airline will be able to call on the loan if its cash reserves fall below certain levels over the next two years.
The government will have the ability to turn the loan into shares in the airline
The company is also cancelling an 11 cents a share worth $123 million.
Securing our national airline is essential.
Sir Bob Jones told Jack Tame on Q&A interview on 8th March that “the Govt will have to bail Air NZ” Watch that here
Finance Minister Grant Robertson gives more details:
Source: whatsoninvers.nz / rnz.co.nz