Repro,
>As far as I know , Ansett were flying at near capacity when it collapsed, yet they were >saying it was losing 1 million a day.
That is a typical Ansett pilots response. Yield management and cost structure is everything. They probably needed far in excess of “full” aircraft just to brake even. As to the previous profitable years, go talk to financial people involved. The profits were in some case illusionary and a lot to do with creative accounting, high fare structures which were no longer sustainable with competition, deferring badly needed maintenance and capital expenditure and an appalling lack of accountability and management reporting in which valuable resources / expenditure were wasted on useless or unworkable projects. A certain recipe for financial ruin. Ansett was saddled with a bloated cost structure which just about everyone in the industry knew of yet we still have to blame everyone else except the very people responsible for the mess.
Ansett died because it was a badly run financial dinosaur of a bygone era who was incapable of changing, and like the dinosaur is now extinct.
Last edited by Snowballs; 26th Jun 2003 at 08:30.