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Joined: Tue May 29, 2001 9:27 pm

ANSETT... Would It Have Survived?

Fri Apr 30, 2004 3:55 pm

I know there will never be any agreement in this forum about whether ANZ really killed AN or not. But it would be interesting to speculate, whether AN would in any case, have survived in the Australian and/or International market after all the changes and difficulties in the industry as such , and in Australia in particular.

For the sake of this discussion, let's assume that ANZ either never bought into AN, or at most, remained at 50% ownership. Would AN still be flying today? Who knows? Let's look at some points for and against.

FOR: 1) They had Rod Eddington.
2) They had good and dedicated staff, including people at the top.

AGAINST: 1) Very aggresive competitors in QF and Virgin Blue.
2) Much higher cost structure - particularly in people costs - than either of these 2 (including even QF back in those days).
3) A very old, diversified and expensive fleet of aircraft.

What does everyone think?

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RE: ANSETT... Would It Have Survived?

Fri Apr 30, 2004 7:15 pm

Ansett's problems could really be traced back to the 1980s, possibly even earlier. Peter Ables's buying spree certainly didn't help things (leading to the diverse fleet mentioned above). Neither did general poor management under News and TNT.

Might I recommend a good book on the subject: Ansett: The Collapse, by Geoff Easdown and Peter Wilms.

Finally - can I ask that everyone keeps this discussion on topic.

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"So powerful is the light of unity that it can illuminate the whole earth." - Bahá'u'lláh
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RE: ANSETT... Would It Have Survived?

Fri Apr 30, 2004 7:20 pm

If it had survived it would probably have a no frills subsidary called "SettJet"

On your marks get SET go....

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RE: ANSETT... Would It Have Survived?

Fri Apr 30, 2004 7:37 pm

Yes of course Ansett could survive, with the right management team Ansett would of become a major player in the pacific international game. Look at airlines that were near death that with right management turned themselves around CO is the best example.
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RE: ANSETT... Would It Have Survived?

Fri Apr 30, 2004 8:08 pm

I think Virgin flyer has hit the point re history of Ansett with TNT/News ownership and Ables policy of selecting aircraft (Boeing SA - South Carolina">AND Airbus SA - South Carolina">AND BAe, etc.).

The management of crew of Ansett were good, issues aside as mentioned in the book "Ansett: The Collapse" (refer to references of maintenance run as an aero club). I think their efforts held the operation together given the constraints imposed through prior ownership.

Ansett was always going to struggle against the merged Qantas/TAA. The fleet that the combined organisation had plus crew provide higher flexibility than Ansett would ever have.

However, the main problem as I see it was the investment required for new fleet for Ansett. That required as financial strong backer. If it was SA, then I'd say that Ansett would still be here today. Lin/Fox's bid was never serious - it was about getting control of the airport/terminal retail, and not about running an airline.

If Ansett still existed through SA's backing, it would still be overshadowed by Qantas and Virgin Blue would be nipping at its heals.
By the way, is there anyone on board who knows how to fly a plane?

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