Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1 Reply 1, posted (12 years 2 months 3 weeks 6 days 21 hours ago) and read 1414 times:
Wednesday September 12, 11:45 AM
QANTAS Says Will Not Buy Assets of Ailing Ansett
SYDNEY, Sept 12 Asia Pulse - Qantas Airways Ltd (ASX:QAN) today said it would not purchase the assets of the stricken airline Ansett.
Qantas chief executive Geoff Dixon said Ansett's problems were far to great for the airline to take on.
After discussions with the Australian Government and the Australian Competition and Consumer Commission, Qantas undertook an examination of the Ansett Group of Companies yesterday.
Qantas Chief Executive Officer, Geoff Dixon, said Qantas had looked closely at Ansett in the limited time available.
"While understanding the difficulties facing Ansett staff, we could not, in any way, find a way to go forward with a purchase. Ansett's problems are far too great for Qantas to take on," he said.
Ansett is a subsidiary of Air New Zealand Ltd (ASX:AIZ).
Qantas Chairman Margaret Jackson said the board had met three times in the past three days to consider the purchase.
"This has been a difficult decision because of the national interest issues," she said.
However, the Board was conscious of its responsibility to Qantas shareholders and staff and the economics of the proposal, she said.
"While we would have liked to have assisted in keeping Ansett flying in some form, the implications for our own balance sheet and future profitability must come first," she said.
Mr Dixon said the acquisition would have been "a negative for Qantas".
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1 Reply 5, posted (12 years 2 months 3 weeks 6 days 21 hours ago) and read 1370 times:
Air New Zealand to Liquidate Ansett; Seeks Temporary Help From Australia
By Margreet Dietz
Sydney, Sept. 12 (Bloomberg) -- Air New Zealand Ltd. has asked the Australian government for financial support for its ailing Ansett unit, giving the carrier time to liquidate the business and start a new low-fare airline in Australia.
The Auckland-based airline, which has spent more than two months seeking New Zealand government help to try to refinance the business, said it has asked for an urgent response from the Australian government.
Air N.Z. Acting Chairman Jim Farmer said in a statement he was seeking the ``Australian government to assume a leadership role not only in saving many jobs, but also to provide the foundation for a reinvigorated, competitive aviation market in Australia.''
New Zealand's national carrier made the decision after competitor Qantas Airways Ltd. said it wasn't interested in buying Ansett, Australia's No.2 airline, which is losing A$1.3 million ($672,000) a day.
Ansett's problems are ``far too great to take on,'' Qantas said in a statement to the Australian Stock Exchange.
Qantas shares, which earlier plunged as much as 14 percent to A$2.95, recently traded at A$3.15. Air New Zealand's Class B shares, which anyone can own, fell 27 percent after the statement to 65 New Zealand cents. They were recently at 73 cents.
``Ansett is an asset under distress and there is a fair amount of debt attached to it,'' said Wayne Nicholls, head of dealing at Invesco. ``There were no compelling reasons for Qantas to buy it.''
Investors said Qantas may be able to buy the assets more cheaply when the airline is carved up and sold than making a bid for the whole business.
``I don't think Singapore Air need to rush in, they can sit back, they are in the same situation as Qantas,'' said Martin Littler, who helps manage A$8 billion of equities at Commonwealth Investment Management.
Tomorrow, Air N.Z. is expected to post a second-half loss of NZ$224 million before charges, most of it because of Ansett's losses. The airline is also expected to write-off most of its A$1.1 billion investment in Ansett.
It needs to quit the business to save its profitable Air New Zealand domestic and international arms, though investors are wary it may have ongoing financial obligations to Ansett.
``The only alternative is to ring-fence Ansett in some form,'' said Tim Preston, managing director of ASB Securities Ltd. ``Before anyone is going to recapitalize Air New Zealand they're going to have to be convinced that the bleeding has stopped within Ansett Australia,'' he said. ``It's very hard to see how they have stopped that bleeding, particularly given events of today,'' he said, referring to the global slide in airline stocks after the New York hi-jacking.
Aussie_ From Australia, joined Dec 2000, 1766 posts, RR: 5 Reply 6, posted (12 years 2 months 3 weeks 6 days 20 hours ago) and read 1343 times:
Aussie govt rejects Ansett 2 deal, foreign buyers now interested.
Further Proposal Made to Australian Government (issued at 1700)
Wed 12 September 2001
The Acting Chairman of Air New Zealand, Dr Jim Farmer, has just issued the following statement:
"Earlier this afternoon, Qantas Airways advised that it would not proceed with the purchase of Ansett.
"Air New Zealand immediately submitted a new proposal to the Australian Government to continue Ansett airline operations in a restructured form,
"The proposal was made in a letter delivered to the Acting Prime Minister of Australia, Mr John Anderson, this afternoon.
"It asked the Australian Government to provide underwriting to enable Air New Zealand to maintain Ansett operations for an agreed period while an attempt is made to restructure the airline.
"The proposal involved restructuring the existing Ansett airline companies into a value-based airline with a similar cost base to Virgin Blue but with much broader network coverage, nationally and regionally, across Australia.
"We've just been advised that the Australian Government does not favour this proposal - and we are now discussing with them a further option which has become available during the day.
"During the day we have received expressions of interest in Ansett from other potential purchasers. We are now seeking Australian Government underwriting to pursue those prospects with urgency.
"The situation is obviously changing very rapidly - and we will be making further announcements as soon as we have any developments to report."
VH-BZF From Australia, joined Oct 1999, 796 posts, RR: 0 Reply 7, posted (12 years 2 months 3 weeks 6 days 19 hours ago) and read 1348 times:
Firstly I think I speak for all Aussies when I say how diplorable the attack by terrorists in New York, Washington DC (& Pensylvania) were! What a tragedy of catastrophic proportions - so many innocent lives lost! 4 aircraft hijacked, lots of questions over lax security at BOS, EWR & IAD airports. Our thoughts are with our American friends and their families at this terrible time!
According to my sources, Singapore Airlines has just taken 45% of Air NZ ltd. & further more Air NZ are looking at every possible way of keeping Ansett flying, including approaching the Australian Govt. for help! The airline feels it has a moral obligation to keep Ansett Australia flying for as long as possible before shutting it down & re-starting it as a smaller low cost airline????? Employees entitlements will probably be protected by Air NZ, but nothing at this stage is certain! Employees maybe able to roll-over to the new (yet-to-be named)airline, or take their money and run!
This is certainly a much better prospect than what has been floated in the last few days, however nothing is set in concrete & the airline may still be placed into receivership as late as tonight!
Lets hope and pray that something good/positive can come out of this diabolical mess.
Ansett Australia (used to be 'One of the Worlds Great airlines')
Not Anymore - Thanks to Air New Zealand & the NZ Government!
Apparently A B767-300 (I believe VH-BZL?) & a B737-300 have been grounded by their leasing companies at the Melbourne jet base, as the leasing companies will not allow AN to fly them?
Ansett Australia - (was) One of the worlds great airlines!
Tullamarine From Australia, joined Aug 1999, 1250 posts, RR: 0 Reply 9, posted (12 years 2 months 3 weeks 6 days 18 hours ago) and read 1329 times:
AN website has already been modified removing all references to "Absolutely" as well as removing Air NZ co-branding though references to NZ remain throughout website and press releases still refer to AN/NZ Group. There is also an apology on website for slow response on phones. It is a credit to the AN staff that they are still manning the phones.
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1 Reply 11, posted (12 years 2 months 3 weeks 6 days 12 hours ago) and read 1271 times:
Ansett In Administration, Price waterhouse-Cooper:
Anderson encouraged by interest in Ansett
Acting Prime Minister John Anderson says he is encouraged with the increasing number of expressions of interest in Ansett Airlines.
However, none of the offers are to buy the entire carrier.
Ansett is now in the hands of administrators and its services will continue until further decisions are made about its future.
Mr Anderson says he is pleased with the number of offers to buy parts of the carrier.
"Several airlines have had the opportunity to have a closer look at buying it all or what have you, or investing heavily in it and at this point of time have not chosen to take that option up," he said.
One of those is the Ansett Pilots Association which has submitted a buyout offer and says it has the backing of major European banks.
Mr Anderson says the Australian Government will not be underwriting Ansett.
He will continue discussions with all the parties.
Air Taiwan From Australia, joined Dec 1999, 1517 posts, RR: 4 Reply 13, posted (12 years 2 months 3 weeks 6 days 12 hours ago) and read 1264 times:
first of all, J Howard is in Washington (for your information Go Canada!)
BH-BZF (the person), BZL (the plane) wasn't grounded, cuz I just flew AN138 from Sydney to Brisbane on it.
My flight with AN today was one of the BEST! Althought facing uncertainties, all the staff were really really helpful and all so I decided to buy them a card tellling them how wonderful they are and how they do not deserve this. A lot of them cried... (I almost did, too)
Anyways the ACTU is organising a rally for Ansett on Friday in Sydney, Melbourne, and Brisbane. I know I will be going.
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1 Reply 16, posted (12 years 2 months 3 weeks 6 days 12 hours ago) and read 1253 times:
Wednesday September 12, 4:53 PM
Singapore Air Position Awkward In Ansett Saga - Analysts
By Shen Hong
Of DOW JONES NEWSWIRES
SINGAPORE (Dow Jones)--Singapore Airlines is probably experiencing the most difficult time in determining the fate of one of its key overseas investments, now that its 25%-owned associate Air New Zealand Ltd. may have to liquidate its troubled unit Ansett Australia.
With major disadvantages noted for all possible options, SIA looks set to face a "lose-lose" situation whatever the outcome of the Ansett saga, analysts say.
Air New Zealand has decided to put Ansett into voluntary administration, a move which will allow the airline to continue operating while it pursues new saviors.
Air NZ is left with few options after Qantas said it wouldn't proceed with any purchase of Ansett, which is losing A$1.3 million a day and has a workforce of about 16,000.
New Zealand Finance Minister Michael Cullen warned earlier Wednesday that Ansett is in "serious trouble" and liquidation remains a strong possibility if Air NZ can't negotiate a solution with the Australian government.
While the New Zealand government seems to have changed its mind and may allow SIA to increase its stake in Air NZ, analysts say the chances aren't high that the Singapore national carrier would still be keen to do so without Ansett being part of Air NZ.
"SIA's original intention to invest in Air NZ was for it to get access to Ansett. It doesn't make economic sense for them to increase the stake (without Ansett)," says Chew Li-May, an analyst at Indosuez W.I. Carr Securities in Singapore.
Indeed, after losing the bid for News Corp.'s 50% Ansett stake to Air NZ last year, SIA pumped in NZ$465 million for a 25% stake in Air NZ to get an indirect share of Ansett.
Ansett claims a domestic market share of about 38% compared with the dominant 55% held by Qantas.
In June, SIA proposed to raise its Air NZ stake to up to 49%, but has stressed that it wants Ansett to stay within Air NZ.
While some consider it an easy option for SIA to simply stick to its 25% stake, others think there's little point why SIA should even continue its presence in the carrier.
"If Air NZ divests Ansett, it's a possibility that SIA may walk away," says Philip Wickham, a regional aviation analyst at ING-Barings in Hong Kong.
"I don't see the point (for SIA to hold the stake)... I don't see synergies," Wichkham said.
Singapore_Air From United Kingdom, joined Nov 2000, 13722 posts, RR: 20 Reply 19, posted (12 years 2 months 3 weeks 6 days 8 hours ago) and read 1215 times:
The situation is blurred because of the tragedy in NY and therefore not many media reports are coming out. on a "normal day", loads of reports on the DJ newswires would have come out. Kill those terrorists...
Anyway, I don't know what SIA's move will be. I think SIA has many options, however only a few are beneficial for them.
Again, what would SIA do with AN? I think that jobs will go if SIA do take them over. In addition, AN will merely become a feeder airline for SIA's european network. I'm sorry, but that's the conclusion I've come to, however I hope to hear more uplifting theories.
Go Canada: You're being a bit hypocritical? Moments ago you told me that we should concentrate on the NY Tragedy.
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1 Reply 20, posted (12 years 2 months 3 weeks 6 days 8 hours ago) and read 1209 times:
Unions vow to fight for entitlements
By PAUL ROBINSON
and GABRIELLE COSTA
Thursday 13 September 2001
The ACTU is planning legal action against Air Zealand to force it to pay millions of dollars in entitlements owed to workers at its embattled subsidiary Ansett Airlines.
ACTU secretary Greg Combet said yesterday that Ansett had been grossly mismanaged by Air New Zealand, leaving it debt ridden, with an ageing fleet, and a staff of 17,000 who face an uncertain future.
After a meeting with Ansett unions Mr Combet said: "Air New Zealand have no credibility at all. These people couldn't run a chook raffle. They took a profitable airline and look what they've done to it.
"They have come up with one silly proposal after another and now there is pandemonium among the workforce at Ansett. The workers don't know whether they have a job or what is happening. It's a disgrace."
Mr Combet said Ansett could continue operating only if the government agreed to pick up its operating costs, estimated at about $1.5million a day. He said an administrator could then assess the books to determine what state the company was in.
"That would give others, like the Ansett Pilots Association, time to come up with alternative proposals."
The association has dusted off an employee buyout plan it put forward last year. It proposes that pilots, engineers, management and industry unions consider a buyout plan devised by New York management buyout specialists Keilin and Co. The pilots association has also retained insolvency consultants Sheahan Coope Locke and others to develop corporate and legal plans.
Victorian Treasurer John Brumby said if the Federal Government had acted swiftly, voluntary administration could have been averted.
About 6000 Victorian workers, a third of the company's workforce, stand to lose their jobs.
"This is a disaster of the Federal Government's own making and it's a national tragedy," he said.
The Howard Government should have pushed for Singapore Airlines to be allowed to raise its stake in Air New Zealand to 49 per cent, thereby freeing up funds to salvage Ansett, he said.
Mr Brumby said that while Victoria could suffer job losses directly as a result of the carrier's liquidation, other states stood to lose much-needed services in rural and remote areas.
Mr Combet said Ansett owed its staff between $200 million and $300 million, a debt that would be pursued relentlessly by the unions.
"There will be a huge campaign over this. Air New Zealand will be the first port of call. We'll be investigating taking legal action against them and we'll be knocking on the door of the Federal Government. No matter where the money is coming from we will secure these people's entitlement," he said.
The national assistant secretary of the Australian Services Union, Linda White, said it was not a time for hasty decisions. "A cool head is needed to determine where Ansett is going and the Federal Government needs to be involved," she said. "This isn't just a national disaster, it's an international disaster. Thousands of jobs may well go."
The ASU yesterday lodged an application to secure Ansett workers' entitlements under international conventions in the Australian Industrial Relations Commission.
ASU Victorian president Martin Foley said staff had occupied some Ansett work sites yesterday, pushing for guaranteed job security or their entitlements.
He said staff no longer believed in Air New Zealand: "We're hearing contradictory statements from them every half hour."
Australian Workers Union national secretary Bill Shorten said unions were considering a campaign to ban Air New Zealand from Australia if they failed to honor Ansett workers' entitlements.
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1 Reply 22, posted (12 years 2 months 3 weeks 6 days 7 hours ago) and read 1202 times:
Anger spills into bans
By MARK PHILLIPS, industrial reporter
ANSETT staff staged spontaneous industrial action yesterday as the fate of the airline worsened.
Union leaders said Qantas' decision not to buy Ansett had made protection of jobs and up to $400 million of workers' entitlements paramount.
Frustration spilled over at Melbourne airport, where staff locked down some areas of the airline's sites, refusing to release aircraft or to continue work until they are guaranteed job security or entitlements.
Unions are also believed to be considering bans on handling Air NZ flights into Australia to show their anger.
ACTU secretary Greg Combet, who held an emergency meeting of union leaders at 4pm, said workers had lost all faith in Ansett and Air New Zealand management.
Mr Combet said the aborted plan by Air NZ to liquidate the company and relaunch "Ansett 2" had outraged unions.
"There's tremendous anger at Air NZ among the union workforce because after Qantas said no to the buy-out of Ansett, Air NZ immediately released a proposal that treated their employees with contempt," he said.
"And then half an hour later, they released another proposal, and it's clear that Air NZ are totally incompetent and have completely lost credibility with the Ansett workforce."
Mr Combet said the collapse of the Qantas offer made protecting employees' entitlements the main priority for unions.
He said the ACTU now estimated entitlements were worth $400 million.
"We will take legal advice to see if Air NZ can be pursued for those entitlements," Mr Combet said.
"We also believe the Federal Government has got to act to make Air NZ take responsibility for those entitlements and guarantee Ansett's employees that their entitlements will be met."
Engineering maintenance workers in Melbourne held a stopwork meeting yesterday.
Australian Workers Union secretary Bill Shorten said workers felt they had been lied to by Air NZ.
Linda White, assistant national secretary of the Australian Services Union, said voluntary administration was the "least worst" option.
It would allow Ansett to continue trading while buyers were found for its assets.
Meanwhile, despair grew among Ansett's 16,000-strong workforce.
As the day developed the strain began to show as workers expressed frustration at not being kept up with developments.
And to compound matters, the company has placed a ban on staff speaking to the media.
Ansett is believed to have started laying off casual and contract workers yesterday afternoon.
Some employees left the airline's Swanston St head office in tears, carrying personal belongings from their desks.
One man said while he could lose his job, the terrorist attacks in the United States put the Ansett crisis in perspective.
"With what's happened today all around the world, what's happened at Ansett pales into insignificance," said the 13-year employee, who asked not to be named.
But he remained upbeat a solution would be found to keep the airline flying.
"At this stage, you think you will get nothing," he said.
"We honestly don't know, but anything from now will be a bonus. Who knows - a new entrant may come in and may give opportunities for people."
A rally of Ansett workers will be held at 12.30pm tomorrow outside the State Library.
Tullamarine From Australia, joined Aug 1999, 1250 posts, RR: 0 Reply 24, posted (12 years 2 months 3 weeks 6 days 3 hours ago) and read 1186 times:
NZ have proved themselves to be very poor managers. The ridiculous plans the board seems to throw up at a moment's notice only serve to further illustrate their incompetence. Their desperate attempts to cast off AN one way or another should be seen for what they are; an attempt to avoid their fiduciary responsibilities by passing the responsibility to someone else. That they have also walked away from their moral obligations to AN staff is contemptible.
There is no doubt that if AN goes into liquidation that creditors will seek to exercise the letter of comfort given to AN by NZ and this has the potential to bankrupt NZ. If I were SQ I'd be bailing out of NZ quick smart.
25 Mx5_boy: Tulla, Isn't it refreshing and *Absolutely* bloody marvelous how the NZ board have shown themselves to be completely and utterly useless? I say *&@k N
26 Air Taiwan: totally agree with you there Mx5_boy! Jimmy
27 AJ: "Air NZ still thinks that SQ wants to invest in them...boy are they wrong! I agree with Wirraway's post. SQ only was forced to invest in NZ after it s
28 TG992: Can someone explain to me how SQ increasing their shareholding and refusing to buy AN supports the view that SQ never wanted to buy into NZ and really
29 AJ: TG992, logic and business morals seem to have vanished in these arrangements. Why a company can ditch a component of their core business with 16,000 s
30 VH-BZF: I have just heard from a staffer at Melbourne Airport that Ansett have cancelled their catering contract with Gate Gourmet (to cut costs) and so NO fo
31 Wirraway: Auckland, Sept. 13 (Bloomberg) -- Singapore Airlines Ltd. and Brierley Investments Ltd. said they agreed to invest NZ$150 million ($64 million) each i
32 QantasAirways: Singapore_air is right... This whole tragedy in New York has completely overshadowed the Ansett thing (though it ought to) What is to come of Ansett?
33 Singapore_Air: Announcement from Singaporeair.com Air New Zealand 13 September 2001 Singapore Airlines ("SIA") has today reached agreement with Air New Zealand, Brie
34 Ceilidh: The QF rescue package was a victim of Tuesday's terrorist actions - investors are bailing out of airline stock at the moment and the funding that they
35 Wirraway: ABC Net online: Ansett to be grounded tonight A union representing Ansett employees claims the airline will be grounded tonight. The Australian Servic
36 Dalecary: This situation is appalling and IMO completely the fault of AirNZ. Why in God's name did they believe they could successfully own and operate AN,an ai
37 Wirraway: just reported on ABC News/7.30 report, Dr Palmer said AirNZ is no longer libel for the Ansett employee entitlements, acting PM Anderson has gone balis