ABC News Online
Posted: Tue, 21 May 2002 18:21 AEST
Australiawide confirms regional airlines purchase
Australiawide Airlines has confirmed it will buy Ansett's two regional subsidiaries, Kendell and Hazelton Airlines, after negotiations with Ansett's administrators ended today.
A contract of sale for both airlines is expected to be agreed on within 14 days.
The Federal Transport Minister, John Anderson, has said the Government would provide financial assistance if the sale went ahead, which may include wiping or reducing Government loans.
A spokesman for the Australiawide Airlines says it is too early to comment on whether there will be any changes to routes or services.
Australiawide spokesman Armon Hicks would not disclose the sale price but confirmed hundreds of staff would be laid off under the deal.
Mr Hicks said Australiawide intended to merge the two airlines and employ 650 staff - down from the current workforce of about 1000.
"We intend to operate the current (flight) network but we will be looking at additional routes once we get up and operating," he said.
The two airlines currently have routes in New South Wales, Victoria, South Australia and Tasmania and employ almost 1,000 staff.
AAP
Last edited by Wirraway; 21st May 2002 at 11:14.