Ansett

Ansett Australia, or Ansett, was a dominant Australian domestic and international airline, which is in liquidation as of mid-2004.

The company was first started by Reginald Ansett in 1935 as Ansett Airways Pty. Ltd. The business floated in 1937, but was contracting for the USAAF during the war. The post war years were marked with numerous acquisitions, including Australian National Airways (1957). The airline was also prosperous during the second half of the century, especially in the 1980s. However investments such as a share in the US airline America West (which filed for bankruptcy but survived) and its Hamilton Island resort (which went into receivership), performed badly. The company disposed of non-core assets and was the official sponsor of the 2000 Olympics, but liquidity problems forced the ailing business into closure unless finance was provided. On September 13, 2001, the firm was in administration. A day later, the fleets of Ansett as well of its subsidiaries Hazelton Airlines, Kendell, Skywest and Aeropelican were grounded. Air New Zealand, the owner of the airline, offered a settlement package worth AUD $200 million.

The closure angered customers and employees. One rescue plan was devised by businessmen Lindsay Fox and Solomon Lew. The plan was to re-introduce Ansett under new management structure known as Tesna Holdings (Tesna being 'Ansett' backwards). The reformed Ansett was in operation in time for the Summer holidays, but Tesna had difficulty in contractual arrangements and pulled out of recovering the airline; and without a potential buyer, there was no hope of Ansett being rescued. The last flight took place from Perth to Sydney on March 5, 2002, and leased Airbuses were sent to the airport at Mojave, California. The federal government introduced a ticket levy on all domestic flights within Australia for a time to raise money to pay the entitlements of former Ansett employees.

The process of administration of the companies' assets continues to this day with employees receiving AUD $544.7 million out of entitlements estimated at AUD $766.4 million (or about 71 cents in the dollar) and it is expected that another AUD $85.1 million. Ansett's administrators, KordaMentha, told creditors that it was unlikely much more money due to the depression of the global aviation industry after September 11 hurting the value of aircraft which were initially valued at AUD $300 million, to just AUD $70 million.

The failure of 'Ansett II' was worsened by the September 11 and the launch of the cut price domestic airlines, Impulse Airlines (since acquired by Qantas) and Virgin Blue. The demise of the airline came at a time when the community was suffering from a worldwide business downturn due to numerous corporate failures, such as Australian HIH Insurance, and American companies Arthur Andersen and Enron.

Former Ansett staff and overseas contributors have since been actively working with venture consultant, Pacific Southwest Engineering Pty Ltd, to develop a new airline to be based in Melbourne. RMA Gold Airways Limited was formed early in 2004 to operate Gold Airways (http://www.flygold.com ) which is to be based in Melbourne and will most likely be seen as Ansett Australia's domestic replacement. The company is currently seeking expressions of interest from major Australian and overseas investors but admits its capital raisings will need to be substantial to puncture the market and build a next-generation product. The venture expects to be ready to apply for an Air Operator Certificate by November 2004.

Ansett New Zealand

Ansett New Zealand was closely related to its Australian counterpart, serving the New Zealand market. In 2000, Ansett New Zealand was renamed Tasman Pacific Airlines of New Zealand, operating under the Qantas name and brand. It went into receivership, and subsequently into liquidation, in 2001.

Sponsorship

Ansett Australia was one of the major sponsors of the AFL, holding the naming rights to the AFL pre season competition, the Ansett Australia Cup. It was also a major sponsor of Waverley Park/VFL Park. The logo was therefore placed everywhere around the stadium

References

• Mentha M. & Korda M., "Ansett Group of Companies - Fourth Report to Creditors", 2004, Online (http://kordamentha.com/creditor_files/6/Fourth%20Report%20to%20Creditors.pdf)

External links

• Ansett Australia (http://www.ansett.com.au/) - site with further information about the administration of the company
• Ansett Airlines ephemera (http://nla.gov.au/nla.aus-vn1076209) digitised and held by the National Library of Australia