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AN Investment Partners  
User currently offlineRmm From Australia, joined Feb 2001, 524 posts, RR: 1
Posted (12 years 8 months 1 week 3 days 20 hours ago) and read 800 times:

AN Update
A news report for Ansett Australia employees
AN Update 035
17 December 2001


Message From Mark Mentha

The following media announcement just released by the Tesna Consortium is another terrific step in the right direction for the “all new” Ansett as we head towards the launch date of 1 February 2002.

INVESTMENT PARTNER JOINS LEW, FOX: Mr Solomon Lew and Mr Lindsay Fox announced today that a heads of agreement had been signed with Air Partners III Australia, LLC ('Air Partners') to become an equity partner in Tesna Holdings Pty Ltd ('Tesna').

Tesna will become the new owner of Ansett from 31 January, 2002 following completion of the sale agreement with the Ansett Administrators for the mainline airline assets of the Ansett group.

The key principals of Air Partners include Mr David Bonderman and Mr Bill Franke. Mr Bonderman is the Chairman of Ryanair and a Director of Continental Airlines. Mr Franke was CEO of America West Airlines from 1993 to August 2001 and Chairman of Airplanes Group plc, a large aircraft finance entity.

Messrs Lew and Fox said "The Air Partners team brings to Tesna and Ansett significant and successful airline and aircraft finance experience that includes investments in Continental Airlines, America West Airlines, Ryanair and the aircraft finance company AerFi, plc (formerly GPA, plc)".

"The common theme in their airline related investments is an active and direct involvement to achieve significant improvement in operating and financial performance and business turnaround. Ryanair, for example, has been transformed from a niche operator to become the second largest airline by market capitalisation in Europe, with a value higher than British Airways", they said.

Mr Bonderman said, "We believe Ansett represents a unique circumstance where we, working with committed local partners, can restore and build value."

Mr Franke said, "Having looked first hand at Ansett and the overall market in Australia, I am convinced Ansett can be restored to being a great airline, and a great business, of which employees and the travelling public can be proud."

Messrs. Lew and Fox said, "Air Partners will contribute human resources, intellectual and financial capital and an international network of industry relationships to Ansett. Mr Franke, as Air Partners' managing member, will be primarily responsible for the investment and will commit substantial time. He has been in Melbourne again this week and we will together pursue as a priority the selection of key senior management which we hope to be able to announce in the near future."

"While we actively explored a number of alternative arrangements to manage and operate Ansett we believe the track record of Air Partners' principals in building strong management teams and actively managing their airline investments is the preferred outcome."

The terms at Air Partners' investment in Ansett are confidential, however Messrs Lew and Fox, while sharing management control, will retain majority ownership and will be Co-Chairmen after 31 January.

The Air Partners investment is subject to approval by the Foreign investment Review Board.





17 replies: All unread, jump to last
 
User currently offlineWirraway From Australia, joined Mar 2001, 1321 posts, RR: 1
Reply 1, posted (12 years 8 months 1 week 3 days 20 hours ago) and read 773 times:

RMM

Very interesting, I presume this means Singapore
Airlines will not be managing the "New Ansett".

Wirraway


User currently offlineRmm From Australia, joined Feb 2001, 524 posts, RR: 1
Reply 2, posted (12 years 8 months 1 week 3 days 19 hours ago) and read 767 times:

It looks that way

Rmm


User currently offlineWirraway From Australia, joined Mar 2001, 1321 posts, RR: 1
Reply 3, posted (12 years 8 months 1 week 3 days 19 hours ago) and read 766 times:

Rmm

It will also mean that the "New Ansett" is not an
all Australian airline, would be interesting to know
what "Air Partners" pecentage is.

Wirraway


User currently offlineTrentis From Australia, joined Apr 2001, 160 posts, RR: 0
Reply 4, posted (12 years 8 months 1 week 3 days 15 hours ago) and read 743 times:

I will second that "very interesting" statement!
After hearing about services on America West, I hope they don't bring it here! Could this also have something to do with half of the Fox/Lew consortium being involved with CO for 10 years?
At least they'll have aviation specialists running the airline. What I hope is they allow Australians to run it, and don't just do another Air New Zealand.


User currently offlineWirraway From Australia, joined Mar 2001, 1321 posts, RR: 1
Reply 5, posted (12 years 8 months 1 week 3 days 14 hours ago) and read 737 times:

Trentis

Check out the thread here "How is Bill Franke ex America
West", a bit shocked at some of the replies, a bit of
a worry if there is any truth to them, I think we were
all expecting SIA to manage AN.

Wirraway


User currently offlineAir Taiwan From Australia, joined Dec 1999, 1518 posts, RR: 4
Reply 6, posted (12 years 8 months 1 week 3 days 9 hours ago) and read 726 times:

i thought SIA has already signed the agreement to manage ansett... no???


jimmy


User currently offlineAl From Australia, joined Jun 1999, 593 posts, RR: 2
Reply 7, posted (12 years 8 months 1 week 3 days 6 hours ago) and read 722 times:

Wirraway - I haven't seen the thread on Franke, but by the sounds of your comments, I can guess what's being said. More than likely it's fairly close to the truth. What he did to Cactus in his years at the helm there, speaks volumes. Very worrying to see he will be the hands on "input" person for high level decisions. On the plus side, Bonderman was instrumental, along with Brennerman and Bethune at turning CO around, if my memory serves me correctly. SQ have been slapped in the face yet again, but by the sounds of it, they were wanting too much of AN for too little in return. It also gels with recent speculation that SQ is after AN International and not AN mainline. One would think that this is much more than a simple investment on behalf of Air Partners 3 (Aust.), given the amount of money needed and the long time required to wait for any sort of return. Interesting days in so many ways.
Cheers/Regards. Al.


User currently offlineMx5_boy From , joined Dec 1969, posts, RR:
Reply 8, posted (12 years 8 months 1 week 3 days 5 hours ago) and read 715 times:

Hey guys,

Hmmm, knew that F/L had to have some strong backers but this is a turn up for the books, although not that surprising as the rumours were running around about American backers.

It will be interesting to see whether AN stays in Star - I can't see them *not* being there, but stranger things have happened.

Cheers,

mb



User currently offlineWirraway From Australia, joined Mar 2001, 1321 posts, RR: 1
Reply 9, posted (12 years 8 months 1 week 3 days 1 hour ago) and read 704 times:

Tues "Finanial Review"
Fox, Lew find new Ansett backer
Dec 18
Jane Boyle


A powerful international syndicate has thrown its weight behind the bid for Ansett by the Fox-Lew Tesna group, boosting its chances of a successful relaunch of the collapsed airline.

The consortium, led by the chairman of UK budget carrier Ryanair and Continental Airlines director, Mr David Bonderman, and a former chief executive of America West Airlines, Mr Bill Franke, has agreed to take between 35 per cent and 49 per cent of Tesna and play an active role in the management of the airline.

The deal puts pressure on Sir Richard Branson's no-frills carrier, Virgin Blue, which is also searching for an equity partner and has held talks with the Texas Pacific Group of Mr Bonderman and Mr Franke, among other potential investors.

It also leaves Singapore Airlines, which had been discussing a management contract with Tesna and the Ansett administrators, without a direct role in an Australian carrier. However, Tesna is negotiating commercial arrangements with Singapore and other Star Alliance carriers.

"Having looked first hand at Ansett and the overall market in Australia, I am convinced Ansett can be restored to being a great airline, and a great business, of which employees and the travelling public can be proud," Mr Franke said in a statement yesterday.

Ansett's administrators have conditionally sold the airline's mainline operations to Tesna.

However, the deal requires approval from Ansett's creditors at a meeting in January and is still being contested by Lang Corporation and Virgin Blue.

The chief executive of the dominant Qantas Airways, Mr Geoff Dixon, acknowledged the experience of Mr Bonderman and Mr Frank in the industry, saying: "These are serious people and we will take them seriously."

Virgin Blue's head of commercial operations, Mr David Hutt-
ner, said the carrier had always expected a third competitor and that the deal was "interesting".

"I think they'll find it's a very different operating environment in Australia," he said.

Tesna said that under the heads of agreement, Mr Bonderman's and Mr Franke's Air Partners III Australia would "contribute human resources, intellectual and financial capital and an international network of industry relationships to Ansett".

Mr Franke, who will oversee the investment, would work with Mr Fox and Mr Lew to appoint the senior management team. This is expected to be finalised this week.

There has been speculation about several candidates for the chief executive role, including former British Midlands executive Mr James Hogan, ex-Continental Airlines executive Mr Greg Brennerman, former Qantas executive turned Singapore consultant Mr Peter Stainlay, Ansett chief operating officer Captain Trevor Jensen and even Brisbane Lord Mayor Mr Jim Soorley.




User currently offlineSccutler From United States of America, joined Jan 2000, 5505 posts, RR: 28
Reply 10, posted (12 years 8 months 1 week 3 days 1 hour ago) and read 700 times:

An interesting development... those who recall the longer-term, will remember that Ansett used to have an equity position in HP.

One cannot help but speculate about possible long-term implications for possible linkage w/ CO (I don't regard much chance of that w/ HP, as HP's key goal at this point is survival, not expansion, whilst CO could certainly build upon its substantial Pacific presence and its prior service to Oz).

In any event, a nice hedge against regional weakness, and an interesting (and important) show of support from overseas to help amplify the legitimacy of AN-III's (or 2.5's) revival.



...three miles from BRONS, clear for the ILS one five approach...
User currently offlineWirraway From Australia, joined Mar 2001, 1321 posts, RR: 1
Reply 11, posted (12 years 8 months 1 week 3 days ago) and read 688 times:

[Dow Jones] Investors spooked by arrival of experienced airline execs David Bonderman and Bill Franke onto local airline market, driving Qantas' share price 3.0% lower to A$3.74 with some 7.5 million shares traded in first 2 hours, says Sydney-based senior dealer at major institutional bank. Dealer says a "major cause of concern" for Qantas after Solomon Lew and Lindsay Fox secured Bonderman and Franke to take an equity stake in a revised Ansett. Notes agreement may have been in the pipeline for a while but Lew-Fox may have been trying to get government concessions first. (LXV)


User currently offlineMx5_boy From , joined Dec 1969, posts, RR:
Reply 12, posted (12 years 8 months 1 week 2 days 23 hours ago) and read 682 times:

Wirraway,

After seeing the news reports this morning I watched as our QF shares dropped on our Bridge Information PC.

Obviously this is the kind of backing ANIII needs to survive the immenant fare war and keep it's cash reserves up until the corporates start coming back.

That is going to be a slow process at least until the beginning of 2003. It's great to see the staff that took redundancies are finally going to get their money before xmas.

Cheers,

mb



User currently offlineWirraway From Australia, joined Mar 2001, 1321 posts, RR: 1
Reply 13, posted (12 years 8 months 1 week 2 days 22 hours ago) and read 673 times:

Mx5

IMHO it will all come down to how the new management
handle the former Global Reward punters as to how
quick AN3 will regain their corporate customers, if
they choose to ignore them, then they will still find
themselves between a rock and a hard place.

Wirraway


User currently offlineMx5_boy From , joined Dec 1969, posts, RR:
Reply 14, posted (12 years 8 months 1 week 2 days 21 hours ago) and read 660 times:

Wirraway,

I completely agree. They (F/L) are going to have to honor at least up to 50% of the previous FF's and match the previous loyalty rewards.

Whether this happens is anyones guess, but it isn't looking like a cheap option and they know this.

I think a earn your points back per flight + new points is a reasonable strategy - they can pro-rate them per tier. Still it's an expensive strategy.

Cheers,

mb


User currently offlineTullamarine From Australia, joined Aug 1999, 1553 posts, RR: 0
Reply 15, posted (12 years 8 months 1 week 2 days 20 hours ago) and read 652 times:

MX5, you're pretty close I think.

From sources within Tesna, I feel this is what they are planning:

- All previous Golden Wing members will have their memberships honoured.
- All previous Star Silver and Star Gold GR members will keep their status even though these were due to be wiped by Star on 31/12.
- Previous GR points holders will have their points given back to them as they earn new points on the new Tesna scheme. Last I heard, this was a 1 old point back for every 2 new points earned.

Realistically, this is the only sensible option for Tesna. They get back some of their previous loyal customers and especially higher yielding Gold tier members. Whilst some of the old Gold pax will stay with QF, many will be happy to return to AN if they feel they can trust the airline to operate securely. Some of these people have gone from Star Gold status and all the privileges that offered them to Bronze QF FF membership and will be keen to get back some of their old luxuries.

To re-instate points without having them tied to use on the new airline would not get people back to AN. All that would happen is that previous GR members would flood the switchboard to redeem points on "hard currency" Star partners such as SQ. This would quickly send Tesna broke and Star would probably walk away from honoring the tickets anyway.



717,721/2,732/3/4/5/7/8/9,742/3/4,752/3,762/3,772,W,A310,320,321,332,333,388,DC9,DC10,F28,F100,142,143,E90,CR2,D82/3/4,S
User currently offlineWirraway From Australia, joined Mar 2001, 1321 posts, RR: 1
Reply 16, posted (12 years 8 months 1 week 2 days 20 hours ago) and read 651 times:

Sounds like a reasonable plan Tullamarine, could QF
have a counterplan to this?

Wirraway.


User currently offlineTrentis From Australia, joined Apr 2001, 160 posts, RR: 0
Reply 17, posted (12 years 8 months 1 week 2 days 15 hours ago) and read 633 times:

on the new F/L section of the AN website it states that a "completely new frequent flyer programme" will be established. perhaps this does mean that old points will not be honoured...which would definitely be a move in the wrong direction

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