The Acting Chairman of Air New Zealand Limited, Dr Jim Farmer, has issued the following statement.

"Air New Zealand and its major shareholders, Brierley Investments Limited and Singapore Airlines Limited, are developing with the New Zealand Government a proposal to ensure on-going financial support for Air New Zealand's international and domestic operations.

"Over recent months, the company has informed the Australian Government of Ansett Australia's financial position and has had further discussions with the Australian Government over the weekend. It is expected that these will be continuing today.

"The company has also held discussions over the last few days with Qantas Airways Limited in relation to Ansett, but these were terminated as a result of adverse comments made by the Australian Competition and Consumer Commission.

"The Air New Zealand Board expects to be able to make a further announcement on, or before, Thursday, 13 September, when it is due to present the company's annual results."