Deadline doubts for Ansett bid
By Darren Goodsir, Transport Writer
Sydney Morning Herald - Tuesday, February 26, 2002
Ansett's bid to fly with new owners by Thursday's deadline appeared to be in disarray last night - with air safety authorities unable to get an assurance on when the crucial operator's certificate could be transferred.
In order to effect a seamless shift of ownership, the Civil Aviation Safety Authority needs to be told this morning that the Tesna syndicate has sealed the deal.
But it is believed that while Tesna has told CASA it is still "unambiguously committed" to buying the airline's core operations, it could not indicate when the four-day countdown could be started - meaning the deadline set by the administrators can not be met.
A spokesman for CASA refused to comment on the negotiations, but confirmed there had been no official approach.
"We are ready to start the paperwork processing as soon as we get that approach," the spokesman said.
The administrators, Mark Mentha and Mark Korda, only have the approval of creditors to absorb losses of more than $1 million a day until Friday.
The sale was originally due to be completed on January 31.
Although in-principle agreements have been reached with key third parties, including aircraft leasing firms and Sydney Airport, contracts have yet to be signed.
If Thursday night's deadline cannot be met, as looks almost certain, the Tesna syndicate, headed by Solomon Lew and Lindsay Fox, will be called on by the administrators to meet these running costs themselves - or risk the airline again being grounded.
The doubts over the airline's relaunch escalated yesterday in the Federal Court, with a hearing aimed at approving the sale being adjourned for the third time.
Another hearing is not likely to be held before Thursday.
Counsel representing the administrators, Simon Whelan, QC, told the court matters had not really advanced in the past week.
While the administrators had reached an agreement with Tesna, there were problems confirming the deal in writing, he said. These same difficulties applied to third parties.
After the hearing, Mr Korda - who confirmed the administrators would not keep running the airline alone beyond Thursday night - said he remained confident the sale would still proceed.
The Tesna syndicate's difficulties have grown worse since the breakdown in merger talks with Virgin Blue on Friday night.
It cleared the way for a three-way dual for market share. Qantas's chief executive, Geoff Dixon, predicted only two carriers would be able to carry on for more than a year.
Virgin Blue's chief executive, Brett Godfrey - who rejected a takeover offer of about $500 million from Tesna - said at the weekend that the syndicate wanted to fold 1500 staff into the budget airline's operations.
It also wanted to retain a full-service component, something Virgin Blue rejected for commercial reasons. Tesna plans to fly 29 aircraft on 11 routes between eight cities.