Air New Zealand's company secretary Jim Blair is refuting reports it needs a extra $670 million just to stay in the air.
Following the government's release of Treasury papers on Wednesday covering the government's bail out of the financially beleaguered airline, some media calculated the paper showed the extra $670 million was necessary for the airline to remain a viable entity.
However, Blair says while the money "represents a desirable capital structure", Air NZ will survive even if the money is not raised in the coming year.
When the airline went hat-in-hand to the government last year, the papers show it wanted $1.705 billion to give it a 65% debt to debt plus equity.
The government forked out $885 million in taxpayer dollars with a promise of another $150 million if the airline needed it.
Now Blair says: "While the 65% gearing target represents a desirable capital structure, it is incorrect to infer that the company would not be viable if it was not achieved in the coming year.
"The workout is to be over an extended period of time and there are other means available to the company to improve gearing, which do not require the capital gap to be funded entirely by further equity. These means include asset sales and improved and retain profits."
Blair adds the airline has more than $550 million on short-term deposit and there was no reason to believe it is not viable over the coming year given its current position.
One treasury report back prior to the bail out shows the airline could raise $900 million through the sale of some non-core assets. Several of those assets have since been sold, including the travel agency Jetset ($10 million) and the NZSki.com business which includes South Island ski fields is under negotiation now.
The financial rescue may go under a more powerful microscope.
Air New Zealand shareholder Catherine Mackenzie - who happens to be ACT MP Stephen Franks' wife - wants the Securities Commission to have a barrister check on insider trading claims.
Mackenzie says the national carrier should be able to sue anyone "who received non-public price sensitive information concerning Air New Zealand at the relevant times".
She names Transport Minister Mark Gosche, Finance Minister Michael Cullen and Prime Minister Helen Clark as possible candidates.
National Finance spokesperson David Carter claims the Prime Minister is still under investigation by the Securities Commission over comments she made during the airline's recapitalisation process.
Carter says National predicted the airline would need more than what the government had given it.
Now the near $700 million figure was out the banks were going to "baulk at this point" and point the airline in the direction of the government , leaving taxpayers to stump up with the cash again".
