Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1 Posted (12 years 2 weeks 1 day 22 hours ago) and read 1395 times:
22nd February 2002
VIRGIN BLUE AND TESNA AGREE TO GO THEIR OWN WAY
STATEMENT BY VIRGIN BLUE CHIEF EXECUTIVE OFFICER BRETT GODFREY
"In recent weeks, Virgin Blue and Tesna have held discussions focusing on a variety of options including the merger of the two airlines.
Virgin Blue has determined that both its financial interests as well as the future needs of its staff and customers is best served by remaining independent.
At the same time, we believe Tesna has valid reasons to pursue its own goals.
Our decision should not be interpreted in any way as a statement about Tesna or its business plan. The talks that took place were both professional and amicable. Our airline was built and was profitable in a three, and even a four, airline environment. We have always welcomed healthy competition and we wish them well in their endeavour.
Virgin Blue will stick to the strategy that it has maintained since day one - offering top quality low fare service to millions of people across the country.
In the history of global commercial aviation, Virgin Blue is one of only a few start-up carriers to return a consistent and growing profit in only its first 18 months.
In addition, if one looks around the world today, the airlines that are clearing succeeding are those that have stuck to the consumer friendly Southwest low fare model.
While Virgin Blue is presently the second largest airline in the country, we believe our people make us Australia's number one airline when it comes to service.
With the most modern fleet in Australia and the tremendous enthusiasm of the over 1500 Virgin Blue staff, we believe there is nothing that can stop us from providing our low fare, high quality service to more and more of Australia."
Rmm From Australia, joined Feb 2001, 521 posts, RR: 1
Reply 1, posted (12 years 2 weeks 1 day 9 hours ago) and read 1350 times:
Thought you'd get a few more bites on this one. It will be interesting to see the 3 way shootout.
On another note, AWAS have moved HYB's scheduled 4C check forward and will now carry out a 2C starting this Monday. This will give it enough hours to see the end of the year. This decision came shortly after the DJ accouncement and supposedly from Tesna. So I can only assume it's full steam ahead. I don't think AWAS are a company that would do this on hearsay and rumours.
Wirraway From Australia, joined Mar 2001, 1321 posts, RR: 1
Reply 2, posted (12 years 2 weeks 1 day 7 hours ago) and read 1336 times:
Hope your right that AN will launch ok, the rumours,
Terry McCranns article, have everyone trying to
guess what the next installment will bring.
Sat "Weekend Australian"
Scene set for battle of the skies
By Steve Creedy and David Nason
February 23, 2002
VIRGIN Blue and the Lindsay Fox-Solomon Lew Tesna consortium last night ended merger talks, setting the stage for a three-way battle for Australia's skies.
The two disagreed on market strategy; Tesna insisted on a full-service airline and Virgin stuck with its budget model.
Virgin said it had determined that its financial interests, and the future needs of its staff and customers, were best served by remaining independent.
"At the same time, we believe Tesna has valid reasons to pursue its own goals," the airline said.
"Our decision should not be interpreted . . . as a statement about Tesna or its business plan. The talks that took place were both professional and amicable," the airline said.
Tesna spokesman Michael McLeod said the failure of the negotiations would have no impact of the Fox-Lew plans to resurrect Ansett.
"The agreement to engage in discussions with Virgin Blue was always based on the clear understanding that Tesna would remain committed to the completion of a sale agreement with the administrators of Ansett," Mr McLeod said.
"We now advise no agreements of any kind have been reached and the discussions have been terminated.
"Virgin Blue and Ansett will participate in a three-airline market, and compete for customers and market share consistent with their respective business plans."
Mr McLeod said he was not disappointed the talks had collapsed.
"At the end of the day, Virgin's view of the market, and what you have to do to get significant market share, is different to ours," he said.
He said the central issue for the Australian aviation market – for both operators and consumers – was the overwhelming market dominance of Qantas.
"Tesna holds the unambiguous view that the Australian market is fundamentally different to the US and European markets in terms of both the scale and relative costs," he said.
"Therefore, the opportunities for value-based airlines to be anything other than niche players is limited."
A statement from Virgin said it had always welcomed healthy competition and could be profitable in a three- or four-airline environment.
It noted it was one of only a handful of start-up airlines to return a growing profit in the first 18 months.
It would stick to the strategy it had maintained since day one, offering quality, low-fare service.
"In addition, if one looks around the world today, the airlines that are clearly succeeding are those that have stuck to the consumer-friendly, low-cost, South-West model," it said.
Tesna is expected to go to the Federal Court on Monday and reveal its plans for completing the sale.
It said last night it remained committed to the completion of the sale.
Glenn From United Kingdom, joined Oct 2005, 0 posts, RR: 0
Reply 3, posted (12 years 2 weeks 1 day 5 hours ago) and read 1324 times:
This comes as no shock to me. why would Virgin Blue want to merge with an airline that has shown them no mercy and continues to do so with the Canberra Terminal debacle ?
Interesting though why they held the talks with them, would have been a good insite into Ansetts financial views and Plans (which i assume Ansett would have had to table to even remotely convince Virgin Blue to consider merging.
Rmm From Australia, joined Feb 2001, 521 posts, RR: 1
Reply 4, posted (12 years 2 weeks 1 day 5 hours ago) and read 1324 times:
I think both camps see the QF reality. I wonder if there's some kind of under the table agreement between the two? One will go for sure in the next year without such an agreement IMHO.
DJ are still moving there maintanence ops to MEL according to ex AN staff there. Just wondering if there's a tie in with the stand alone ex-AN maint operation?
Also, a few pink "Alpha one" catering trucks have been sighted around MEL and ADL. ???
At least this time the 28th is the dead line. We wont have to wait much longer for the outcome be it good news or bad news.
By the way, most of my info is now posted late. As you've no doubt read on PPrune AN have blocked access to this site (PPrune) and I'm sure there watching others. To risky to post from AN, not that I would ever do that. As for AN updates, I'm sure that they'll make there way to you one way or another.