As prophesised, Ansett has now gone into receivership. Hopefully - but in view of recent events, highly unlikely - someone will pick up the pieces. Virgin Blue is said to be interested in parts (10 aircraft and 1,000 staff) and there are rumours of interest by Lufthansa as well.
My suspicion is that this will be the second of many airlines to fold over the next few months.
From today's Australian:
Ansett calls in receiver
By STEVE CREEDY and MICHELLE GILCHRIST
13sep01
ANSETT Holdings was placed in voluntary administration last night after Qantas said the airline's problems were too great for it to take on.
In a terse statement, the Air New Zealand board said it had made the move to enable Ansett to keep trading while new expressions of interest were pursued.
PricewaterhouseCoopers was appointed as voluntary administrator, a form of receivership that leaves the company a slim chance of survival.
Spokeswoman Robyn Newman said Ansett would operate as normal today, and that the airline was still taking forward bookings.
"We don't have any deadlines imposed around the voluntary administration so the immediate message is we're still flying," she said.
"We're still going to be operating some 400 flights a day and we have around about 30,000 customers booked tomorrow."
The announcement ended a confusing day in which the Qantas rejection was followed by two further proposals from Air NZ.
Qantas looked at Ansett's books but joined Singapore Airlines in concluding the loss-making airline was too much of a liability.
"The numbers didn't stack up for what we're doing," Qantas chief executive Geoff Dixon said.
Transport Minister and Acting Prime Minister John Anderson said he was disappointed at Qantas's decision, but recognised Qantas had to put shareholders' interests first.
The decision to place Ansett in administration gives some breathing space to the airline's 16,000 workers.
Air NZ originally threatened to place Ansett in liquidation last night, after legal advice that directors could no longer leave the company or themselves exposed to the Australian carrier's losses.
The move came after Air NZ unsuccessfully tried to convince the Australian Government it should liquidate Ansett and start a new low-cost airline called Ansett 2.
The Kiwis wanted Canberra to underwrite Ansett's operating losses and pay out redundancies.
The Government's refusal to come to the party leaves an employee buyout by a consortium of Ansett pilots, engineers and management as the airline's last hope.
But this hinges on government support to keep the airline flying.
The Ansett Pilots Association said it had started talks with several leading investment banks and a "significant international airline". The union would not name the airline but industry speculation centred on Star Alliance partner Lufthansa.
The consortium has retained New York management buyout specialist Keilin & Co and legal firm Corrs Chambers Westgarth for the bid.
The Australian Licensed Engineers Association called for government backing for the voluntary administrator for 30 days, and proposed a restructuring that would see the airline publicly listed in 12 months.
It called on the Government to back Ansett for 30 days while the administrator investigated restructuring the airline with staff equity participation.
The Government would not comment on the Ansett 2 proposal but repeated it did not support a full bail-out. Mr Anderson's office did not rule out other means of support.
The fate of worker entitlements remains in doubt, and unions are expected to take court action in an attempt to secure them.
The corporate watchdog will seek assurances about the employee entitlements and check on solvency.
"We are particularly concerned to receive an early assurance from the administrator that Ansett is able to pay in full all employee entitlements," Australian Securities & Investments Commission chairman David Knott said. "We will also be asking the administrator to provide an opinion on Ansett's compliance with the solvent trading provisions of the Corporations Act."
The Australian Services Union described voluntary administration as "the least worst option".
"This is a time when cool heads have to prevail," said ASU assistant national secretary Linda White.
"We have an aviation meltdown in the US and globally. This is not the time to make pre-emptive decisions and we say the Australian Government has got to be prepared to put in some money to keep it trading."
Ansett employees filed into a briefing at Sydney airport by the airline's airport manager, Geoff Stirk.
Most talk from staff was of lost opportunities for the once strong airline and betrayal by governments and directors.
"Air New Zealand over-extended themselves and never really had the capital to buy us in the first place," said five-year employee Rod Chapman.
Opposition transport spokesman Martin Ferguson described the airline's collapse as a monumental crisis that should have been avoided.