newswatcher
8th Nov 2001, 17:34
From the BBC News Site:
"Bankrupt Australian airline Ansett is set to be bought by two Melbourne millionaires, after the airline's administrator named them as the preferred bidders.
The businessmen Lindsay Fox and Solomon Lew have offered 3.6bn Australian dollars ($1.85bn) for Ansett, in a deal they say will employ 4,000 of Ansett's 17,000 staff.
The Australian government stepped in to keep Ansett flying after its owner, Air New Zealand, closed the debt-ridden carrier down in September.
The Lew and Fox consortium is in talks with Singapore Airlines to take a stake in Ansett and plans to buy 29 new Airbus A320 planes to improve service on Ansett's routes.
Rival bidder
There were angry scenes and protests against the New Zealand prime minister when Ansett, which is the only airline serving many Australian destinations, was grounded for two weeks in September.
The consortium intends to fly Ansett's main trunk routes and to buy Ansett's terminals and some other assets, said Mark Korda of Andersen, the administrators.
The deal is not yet finalised. "Creditors will have to brought into this, and that will be early next week before any decision can be made," said Australian transport minister John Anderson.
The businesses would be transferred to the consortium at the end of January 2002.
ANstaff, a rival contender put together by the airline's pilots association, said it still hopes to win the right to operate the airline.
Salvaging jobs
The salvaging of at least some jobs has been welcomed by the Australian Council of Trade Unions (ACTU).
"This agreement provides the basis for at least 4,000 direct jobs to be saved in Ansett Mark II, with a further 3,000 jobs in regional air services and other Ansett businesses," said ACTU secretary Greg Combet.
The news comes as unemployment in Australia hit a two year high. Government figures showed the joblessness rate reached 7.1% in October.
Mr Fox made his fortune in the trucking business, while Mr Lew is a clothing entrepreneur."
"Bankrupt Australian airline Ansett is set to be bought by two Melbourne millionaires, after the airline's administrator named them as the preferred bidders.
The businessmen Lindsay Fox and Solomon Lew have offered 3.6bn Australian dollars ($1.85bn) for Ansett, in a deal they say will employ 4,000 of Ansett's 17,000 staff.
The Australian government stepped in to keep Ansett flying after its owner, Air New Zealand, closed the debt-ridden carrier down in September.
The Lew and Fox consortium is in talks with Singapore Airlines to take a stake in Ansett and plans to buy 29 new Airbus A320 planes to improve service on Ansett's routes.
Rival bidder
There were angry scenes and protests against the New Zealand prime minister when Ansett, which is the only airline serving many Australian destinations, was grounded for two weeks in September.
The consortium intends to fly Ansett's main trunk routes and to buy Ansett's terminals and some other assets, said Mark Korda of Andersen, the administrators.
The deal is not yet finalised. "Creditors will have to brought into this, and that will be early next week before any decision can be made," said Australian transport minister John Anderson.
The businesses would be transferred to the consortium at the end of January 2002.
ANstaff, a rival contender put together by the airline's pilots association, said it still hopes to win the right to operate the airline.
Salvaging jobs
The salvaging of at least some jobs has been welcomed by the Australian Council of Trade Unions (ACTU).
"This agreement provides the basis for at least 4,000 direct jobs to be saved in Ansett Mark II, with a further 3,000 jobs in regional air services and other Ansett businesses," said ACTU secretary Greg Combet.
The news comes as unemployment in Australia hit a two year high. Government figures showed the joblessness rate reached 7.1% in October.
Mr Fox made his fortune in the trucking business, while Mr Lew is a clothing entrepreneur."