Ansett Aircraft Value Plummets
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Ansett Aircraft Value Plummets
Couldn't miss this one in the Financial Review
Headline Ansett aircraft value plummets
Date April 19th, 2004
Source Australian Financial Review
Ansett aircraft value plummets
Ansett Airlines creditors are stuck with 28 aircraft the administrators have had trouble selling after revising estimates of the planes' worth from more than $600 million when the airline collapsed in 2001 to just $63 million today.
Ansett administrator Mark Korda has distributed $547.7 million to former Ansett staff who were estimated to be owed $766.4 million when the airline collapsed.
Ansett creditors have since reaped the benefits from the sale of 30 of the airline's 55 owned aircraft.
But Mr Korda said yesterday the value of the remaining fleet of aircraft including Boeing 767s and BAe 146s, along with Saab 340As on lease to Regional Express was well below previous valuations.
The aircraft fleet is the largest remaining asset.
The value of the aircraft has been revised downward from more than $600 million, according to an independent expert valuation, firstly to $300 million, then to $250 million and again to $150 million since 2001.
However, Mr Korda's firm KordaMentha sold four Fokker F50s in Sweden for $7 million last week, and Mr Korda said two Airbus A320 aircraft would fly to Europe next week for leasing in the Middle East, Africa or Europe. ``Once they are leased you can sell them,'' he said.
``The state of the global aviation market, whilst now showing some signs of improvement, continues to be depressed when compared to pre-September 2001 levels, and the rise in the value of the Australian dollar against the US dollar has further reduced values,'' according to a recent creditors report.
``The current value of the aircraft is well below previous valuations, due to the state of the global aviation market.''
The remaining aircraft, which have been warehoused in Victoria's Essenden and Tullamarine airports, are among 2000 similar planes for sale on the world aviation market.
Adding to the lack of buyer interest is their old age relative to other stock on sale. The Ansett aircraft were older than most of the available stock, Mr Korda said. ``It's difficult but not impossible to sell them.''
The administrators are seeking to recover a further $102 million in unrealised asset sales plus the $63 million from airline sales.
KordaMentha estimates Ansett employees will receive a further $85.1 million.
Asset sales were $30 million ahead of schedule, Mr Korda said.
Headline Ansett aircraft value plummets
Date April 19th, 2004
Source Australian Financial Review
Ansett aircraft value plummets
Ansett Airlines creditors are stuck with 28 aircraft the administrators have had trouble selling after revising estimates of the planes' worth from more than $600 million when the airline collapsed in 2001 to just $63 million today.
Ansett administrator Mark Korda has distributed $547.7 million to former Ansett staff who were estimated to be owed $766.4 million when the airline collapsed.
Ansett creditors have since reaped the benefits from the sale of 30 of the airline's 55 owned aircraft.
But Mr Korda said yesterday the value of the remaining fleet of aircraft including Boeing 767s and BAe 146s, along with Saab 340As on lease to Regional Express was well below previous valuations.
The aircraft fleet is the largest remaining asset.
The value of the aircraft has been revised downward from more than $600 million, according to an independent expert valuation, firstly to $300 million, then to $250 million and again to $150 million since 2001.
However, Mr Korda's firm KordaMentha sold four Fokker F50s in Sweden for $7 million last week, and Mr Korda said two Airbus A320 aircraft would fly to Europe next week for leasing in the Middle East, Africa or Europe. ``Once they are leased you can sell them,'' he said.
``The state of the global aviation market, whilst now showing some signs of improvement, continues to be depressed when compared to pre-September 2001 levels, and the rise in the value of the Australian dollar against the US dollar has further reduced values,'' according to a recent creditors report.
``The current value of the aircraft is well below previous valuations, due to the state of the global aviation market.''
The remaining aircraft, which have been warehoused in Victoria's Essenden and Tullamarine airports, are among 2000 similar planes for sale on the world aviation market.
Adding to the lack of buyer interest is their old age relative to other stock on sale. The Ansett aircraft were older than most of the available stock, Mr Korda said. ``It's difficult but not impossible to sell them.''
The administrators are seeking to recover a further $102 million in unrealised asset sales plus the $63 million from airline sales.
KordaMentha estimates Ansett employees will receive a further $85.1 million.
Asset sales were $30 million ahead of schedule, Mr Korda said.
Props are for boats!
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How can something bevalued at 600million then end up 63 million in a matter of 3 years or so. Probabaly the fact the most similair aircraft are that are for sale as well are stuck in the Mojave Desert aswell with similair prices. Valuers must have had a nightmmare trying to predict that
.
Have a look at this site shows some ex Ansett and ex QANTAS 76s aswell all told about 10 aircraft from Australia.
http://www.globalplanesearch.com/view/all/all.htm
Sheep
.Have a look at this site shows some ex Ansett and ex QANTAS 76s aswell all told about 10 aircraft from Australia.
http://www.globalplanesearch.com/view/all/all.htm
Sheep
Evertonian
Easy sheep guts. They were never worth $600 million! That's what happens when aviation infidels (read beancounters) look at books instead of markets.
I wonder if they even considered doing a deal with the Government, to turn them into tankers? I know it probably would never happened, but that's the sort of lateral thinking they needed from day 1.
I wonder if they even considered doing a deal with the Government, to turn them into tankers? I know it probably would never happened, but that's the sort of lateral thinking they needed from day 1.
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Apparently a number of people have asked about the purchase price of the 146 freighters and are still in shock. Particularly on the hard line being driven by KM. I suppose it comes down to would you rather have a percentage of something or all of nothing? It will pay off if someone in the next few years comes along and pays top bill for them. That's pretty likely
Evertonian
Bitter balance. AAe were interested, but the clowns were asking too high a price. QF were interested in the Jetbase, again, too high was the price. As a creditor I feel the first offer in a "fire" sale is the best offer.
Balding Eagle. Yes, the FE positions were removed, at some expense, but the real problem with AN's 762's, apart from age, is the narrow cargo door at the front. Can't take a standard pallet, so they're no good as freighters. Best option is for them to end up in Hyundais.
As a creditor I feel the first offer in a "fire" sale is the best offer.Balding Eagle. Yes, the FE positions were removed, at some expense, but the real problem with AN's 762's, apart from age, is the narrow cargo door at the front. Can't take a standard pallet, so they're no good as freighters. Best option is for them to end up in Hyundais.
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Buster you're spot on.
I have a beancounter mate who specialises in insolvency. In his view, you're first offer is generally your best offer.
Still what can you expect from the Two s. They had no idea how to run an airline so what else can you expect from these two s when it comes to selling aircraft.
To add insult to injury all of us ex: AN staff continue to pay their fees and expenses . . . . . .
In my view there should be an inquiry into Korda Mentha's Administration of Ansett. My suggested terms of reference would include:
1. How well were creditors informed of the downside risks associated with Tesna?
2. What offers were received for major AN assets and the basis upon which those offers were rejected?
I have a beancounter mate who specialises in insolvency. In his view, you're first offer is generally your best offer.
Still what can you expect from the Two
s. They had no idea how to run an airline so what else can you expect from these two s when it comes to selling aircraft.To add insult to injury all of us ex: AN staff continue to pay their fees and expenses . . . . . .
In my view there should be an inquiry into Korda Mentha's Administration of Ansett. My suggested terms of reference would include:
1. How well were creditors informed of the downside risks associated with Tesna?
2. What offers were received for major AN assets and the basis upon which those offers were rejected?
Last edited by Uncle Festa; 25th Apr 2004 at 13:40.
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So why is everyone surprised, I and a few others predicted this very scenario and wrote the Media Release for them on this yonks ago, they're not even original.
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I recently paxed next to a lawyer from Price Waterhouse Cooper (the original administrators) who said the ACTU have now privately admitted that they made a mistake ditching them.
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Back to Basics
Lesson #1 - The reason businesses fail is due to bad management.
Lesson #2 - Administrators are appointed to replace the bad management, do a deal with the creditors to give them space and time, while they examine the books.
Lesson #3 - Administrators identify problem/s and fix it.
Lesson #4 - Put strategies in place to return the company to profitability and sell it.
NEVER, NEVER, NEVER close it down first.
Lesson #2 - Administrators are appointed to replace the bad management, do a deal with the creditors to give them space and time, while they examine the books.
Lesson #3 - Administrators identify problem/s and fix it.
Lesson #4 - Put strategies in place to return the company to profitability and sell it.
NEVER, NEVER, NEVER close it down first.
