Winston Peters, New Zealand First leader, has sharply criticised suggestions of selling off shares in Air New Zealand following the airline’s recent financial losses, dismissing the proposals as “economic lunacy” and a product of “blind ideology.” The debate over the airline’s ownership comes as the government signals a potential willingness to discuss asset sales during this year’s election cycle.
Air New Zealand reported a bottom-line loss of $40 million for the six months to December, prompting calls from the ACT party, led by David Seymour, to consider selling the government’s majority stake. Seymour, in a statement on Thursday, criticised the airline’s focus on initiatives like electric planes and sustainable practices, stating, “Acquire woke, move broke,” and questioning its operational efficiency.
Peters responded forcefully, both on social media and in an interview with RNZ’s Morning Report, asserting that politicians lacked sufficient understanding of the airline industry before advocating for a sale. He highlighted the global challenges facing airlines, including engine shortages, and argued that selling during a market downturn would be a detrimental mistake. “Who on earth would sell” at the current share price, he questioned.
The Prime Minister has publicly dismissed the possibility of asset sales during the current parliamentary term. However, Peters warned against repeating past mistakes made by previous Labour and National governments in selling off state-owned assets. He emphasized the value of Air New Zealand remaining in New Zealand ownership, ensuring that the economic benefits accrue to taxpayers and the national economy, rather than being diverted to foreign interests.
Peters proposed that any government shares in Air New Zealand should be invested in a future fund, modelled after the Singaporean sovereign wealth fund, to maximize returns for taxpayers. He also called for improved management within the airline, focusing on punctuality, cost reduction, and fair pricing, particularly for regional services.
Labour’s finance spokesperson, Barbara Edmonds, echoed Peters’ rejection of a sale, acknowledging the airline’s performance issues but arguing that a short-term loss should not justify selling a strategically important national asset. Edmonds also challenged the Deputy Prime Minister to explain how a sale would guarantee continued connectivity for regional communities.
Green Party co-leader Chlöe Swarbrick condemned asset sales as a driver of rising costs for New Zealanders, arguing that privatisation prioritises profit over passenger needs, worker welfare, and regional accessibility. She characterised the current discussion as a re-emergence of harmful policies.
Public reaction to the debate, gathered by RNZ in Wellington, revealed a range of opinions. Some respondents stressed the importance of maintaining a national airline, while others expressed concerns about high airfares and the need for improved service. Several individuals voiced opposition to further asset sales, citing past experiences where such sales had not yielded significant benefits.
Air New Zealand CEO Nikhil Ravishankar has acknowledged the challenges facing the airline, citing ongoing volatility and global engine maintenance issues. The airline is currently undertaking a strategic review to address these issues.
