aussie_
Posts: 1600
Joined: Mon Dec 11, 2000 10:39 am

What's The Best Bid For AN? ANStaff Or Lew-Fox?

Mon Oct 22, 2001 7:44 am

Now that SQ is out of the race, I am interested in peoples opinions of the two bids.

ANStaff: Larger fleet, more destinations, but using AN's existing fleet. Will try and attract many corporate accounts but also match Qantas discounting. Business class, lounges and FF program included.

Lew-Fox: 29 plane fleet - all new A320 family aircraft. Rotated with new aircraft on 2-year basis to minimise maintenance. Major trunk routes and some selected leisure destinations. Jet-blue approach with inseat TVs possibly internet to come ("Bells-and-whistles"). Business class, lounges, FF program. No comment on leave of discounting - "every-day low prices"(??)

The most attractive flashy option is Lew-Fox (just look at their launch) - it would certainly have novelty value and would almost guarantee Ansett the best service in the air (if the food etc is still as good). However is it viable and does it rely too much on this flashy look???

ANStaff to me looks likea reworked original Ansett - fewer planes and smaller plane-staff ratio. It's the tried an true model, but I think they have ignored public perception in saying that the current fleet is fine. I'm sure it is but will your average travelling Australian believe you???
 
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RE: What's The Best Bid For AN? ANStaff Or Lew-Fox?

Mon Oct 22, 2001 8:37 am

Aussie,

I wouldn't discount SQ being out of the race just yet. We have seen SQ's backflips over various things in the past.

The ANstaff bid is flawed, and as you state relies on much of the old AN. If someone were to try that type of AN they would have to have very deep pockets to survive a concerted attack by QF.

I agree the Fox/Lew bid looks flashy and well organised, however it is lacking a few things that would make it attractive to corporates. Again, they will want to have deep pockets for this venture.

What do I think? A combination of the two. What would I like to see? A big airline come in and resurrect AN as it was before and then restructure. We're not going to see that happen.

Cheers,

mb
 
United Airline
Posts: 8782
Joined: Wed Jan 10, 2001 5:24 pm

RE: What's The Best Bid For AN? ANStaff Or Lew-Fox?

Mon Oct 22, 2001 11:23 am

Definitely ANStaff! They said they are interested in retaining the B 747s and the International Operations..... Since they can serve as a connection to Australia for other Star Alliance members.
 
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BNE
Posts: 2922
Joined: Fri Mar 31, 2000 9:37 pm

RE: What's The Best Bid For AN? ANStaff Or Lew-Fox?

Mon Oct 22, 2001 11:53 am

If we are betting on this I would put my money on Lew-Fox.

ANStaff although trying to retain some of the old Ansett I think a new approach is required and that what Lew-Fox have in mind. 29 aircraft sounds about right with all one fleet.

29 planes should be enough to cover the capitals, Brisbane-Sydney-Melbourn-Adelaide-Perth-Hobart to give enough frequency that business people would want flying 2 class A320-A319. Cairns-Coolangatta-Townsville-Mackay-Launceston-Ayers Rock-Alice Springs-Darwin as your holiday type desintation where you are only really going to need once or twice a day service flying single class A319. Canberra is in a bit of an odd spot you really don't want to fly A320s so you need a tie in with Hazellton. They wouldn't need to buy Hazellton but Canberra is an important destination.

If I were one of Lew-Fox or the person handling the details I would be on my way to New York to check out how Jet Blue are doing things. Also a stop by Chicago to find out what United would want in an Australian carrier as they are going to be part of Star Alliance. The new Ansett need a complete rethink on how jobs done and how the organisation is structured.

ANstaff is just a scaled down version of the original and I don't think they have the access to money and I can see ANStaff trying hard to keep everyone happy which is likely to fail.

If the venture is successful then I could see Singapore coming in a buying a part of it further down the track.
Why fly non stop when you can connect
 
tullamarine
Posts: 1629
Joined: Thu Aug 05, 1999 1:14 pm

RE: What's The Best Bid For AN? ANStaff Or Lew-Fox?

Mon Oct 22, 2001 12:03 pm

ANstaff suffers because it is organised by people who have a vested interest in keeping the work practices the way they were and those work practices are unsustainable.

TTESNA is starting from a virtual clean sheet of paper so it can more easily address the weaknesses of the old Ansett model. This not only includes work practices but also means things such as fleet makeup and terminal ownership.

There is no doubt that TTESNA is the more formidable of the offerings. Its target is different and it will require QF to modify its offering to match it. ANstaff is in effect a copycat of QF but without the economies of scale which make any inefficiencies in QF's structure non-lethal.
717,721/2,732/3/4/5/7/8/9,742/3/4,752/3,762/3,772/E/W,300,310,319,320/1,332/3,388,DC9,DC10,F28,F100,142,143,E90,CR2,D82/3/4,SF3,ATR
 
wirraway
Posts: 1294
Joined: Sun Mar 25, 2001 4:32 am

RE: What's The Best Bid For AN? ANStaff Or Lew-Fox?

Mon Oct 22, 2001 12:26 pm

Our American cousins seem to be saying Jet Blue
is the bees knees, and the Lew-Fox looks like the
the same model except the Aussie one is 2 class,
I agree the ANstaff and their peception the aircraft
are ok is not the perception the Australian public
have, I think at this stage it is either Lew-Fox or
liqidate the whole lot, where SIA would become
very interested in a new start-up airline.

Wirraway
 
Guest

RE: What's The Best Bid For AN? ANStaff Or Lew-Fox?

Mon Oct 22, 2001 12:40 pm

Ian,

I can't see liquidation in AN's future. There is too much infrastructure left that cannot be sold off unless it is part of the airline. The Administrators know this, as do the creditors.

I doubt we'll see an outcome until after the federal election, although one would think the pollies (encumbant) would be wanting a solution ASAP.

Cheers,

mb
 
rmm
Posts: 518
Joined: Sun Feb 04, 2001 10:34 am

RE: What's The Best Bid For AN? ANStaff Or Lew-Fox?

Mon Oct 22, 2001 12:50 pm

Aussie_
I agree with Mx5_boy, don't discount SQ yet. This is the same SQ
spokesman that only a few weeks back said SQ had no interest in
AN at all.
We had the SQ delegation come thru the hanger last Friday and they
seemed very impressed by what they saw. They spoke of maintenance
expansion and of the different types of aircraft that the facility could
accomodate.

As for SQ buying into one of the syndicates I think they'd want a
controlling interest after VS & NZ.

One thing I do recall from the Admin's private talk with AN employees
is that some bidders will wait to the last day to get the best price.

Wirraway,
As for liquidating, sure SQ would probably be interested but the Ansett
name would be mud after another grounding. Even after rebranding the
public would probably still associate the two for sometime

Rmm

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