AAP
Ansett revival possible
By Karen Michelmore and Jane Williams
September 03, 2002
SINGAPORE Airlines could be considering a proposal to revive the collapsed Ansett airline.
Less than two weeks before the anniversary of Ansett's collapse, Channel Nine reported a proposal to revive the airline would be put to Singapore's board on September 11.
Singapore Airlines refused to confirm or deny the report, but said it was keeping its options open.
It stressed Australia remained an important market.
"Our position remains the same," Singapore Airlines told the AFX-Asia wire service.
"We are keeping our options open in the Australian market."
Speculation has been circulating about the entrance of a third carrier into the domestic Australian airline market for several months.
Singapore Airlines consultants in Australia began secretly assembling a proposal for a full service domestic competitor to Qantas about six months ago, with the proposal completed about a week ago.
The Nine Network said it believed the Singapore domestic fleet in Australia would comprise 24 Airbus aircraft.
Sydney Airports Corp Ltd spokesman Peter Gibbs confirmed an evaluation team had come out to look at the former Ansett terminal.
"We believe their assessment was very serious and very measured," Mr Gibbs told AAP.
"We have had ongoing discussions with them, but what they propose to do as far as setting up an airline is entirely up to the Singapore Airlines' board.
"We know nothing more than we did a couple of weeks ago."
Administrators have retained Ansett's heavy maintenance facility, a number of aircraft and a chief pilot with an air operators certificate enabling the aircraft to keep flying.
Singapore Airline was touted as the possible saviour of Ansett in the weeks before Ansett's collapsed last year when it owned a 25 per cent interest of Ansett's parent company Air New Zealand.
Later that year Singapore Airlines agreed to help Ansett administrators set up a viable business proposition for potential buyers.
It also agreed to speak to Lindsay Fox and Solomon Lew about taking on a role with Tesna, the pair's failed bid to relaunch the carrier.
Singapore Airlines is a member of the world's major airline team-up, the Star Alliance, which was left without an Australian domestic connection when alliance partner Air New Zealand cut Ansett adrift.
Ansett lawyer Leon Zwier said tonight there had been no discussion with Singapore Airlines, although talks "would be welcome".
An Ansett administrators' spokeswoman would not comment on any speculation the airline was seeking a "domestic airline solution in Australia".
An analyst said a third airline did not make commercial sense.
"There is a general sense out there that it is complete commercial madness for them to give it a go, but that has never stopped people in the past," he told AAP.
"The whole market is pretty well served at the moment."
Qantas shares were 12 cents lower today at $4.15.
AAP
Dow Jones 11:14 AEST
[Dow Jones] SIA spokesman offers no comment on renewed talk carrier preparing to set up domestic operations in Australia. But reiterates long-term interest in Australian market; "we are always looking at all options available for our long-term development in this market." Also denies speculation SIA has or will purchase former Ansett's domestic airline operating certificate.