AN was founded in 1935 with first flight from Hamilton (in western Victoria) to Melbourne in 1936, so a very old airline indeed. As stated, they went under for a number of reasons, including:
- Inept management
- Inability to capitalise on the Sydney 2000 games (the majority of Australians and visitors at the time thought that Qantas was the official carrier as QF
had very successfully gotten many Olympic stars on board for advertising and promotion)
- Debatable Australian government favouritism towards QF
with regards to route authorisation etc.
- This will surely illicit debate: NZ
take-over blocking SQ
money, something AN
desperately needed for fleet expansion. One only has to look at the financial state NZ
was in at the time, and almost immediately after, to see that although this may have looked good from an NZ
perspective, it was one of the worst case scenarios from an AN
- The arrival of DJ and Impulse on the scene, and the ensueing price war. AN wasn't able to sustain discounting like QF was, as AN could not rely on raking in profits earnt in US dollars.
[Edited 2004-11-19 08:42:16]