Air New Zealand : the recapitalization decision (A)

Abstract

Air New Zealand is a national airline faced with a number of important strategic and financial issues. The company's recent acquisition of Ansett Australia had proved to be disastrous and a severe financial drain for Air New Zealand. Key issues facing Air New Zealand include the long-term strategic positioning of the business, and determining anticipated financing needs, the appropriate 'gearing ratio' or capitalization (debt-to-equity) rate, and available sources of financing. Supplement to this case: AIR NEW ZEALAND: THE RECAPITALIZATION DECISION (B) Supplement Case Centre Reference no. 9B02N020