Ansett latest news
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Tues "Finanial Review"
Fox, Lew find new Ansett backer
Dec 18
Jane Boyle
A powerful international syndicate has thrown its weight behind the bid for Ansett by the Fox-Lew Tesna group, boosting its chances of a successful relaunch of the collapsed airline.
The consortium, led by the chairman of UK budget carrier Ryanair and Continental Airlines director, Mr David Bonderman, and a former chief executive of America West Airlines, Mr Bill Franke, has agreed to take between 35 per cent and 49 per cent of Tesna and play an active role in the management of the airline.
The deal puts pressure on Sir Richard Branson's no-frills carrier, Virgin Blue, which is also searching for an equity partner and has held talks with the Texas Pacific Group of Mr Bonderman and Mr Franke, among other potential investors.
It also leaves Singapore Airlines, which had been discussing a management contract with Tesna and the Ansett administrators, without a direct role in an Australian carrier. However, Tesna is negotiating commercial arrangements with Singapore and other Star Alliance carriers.
"Having looked first hand at Ansett and the overall market in Australia, I am convinced Ansett can be restored to being a great airline, and a great business, of which employees and the travelling public can be proud," Mr Franke said in a statement yesterday.
Ansett's administrators have conditionally sold the airline's mainline operations to Tesna.
However, the deal requires approval from Ansett's creditors at a meeting in January and is still being contested by Lang Corporation and Virgin Blue.
The chief executive of the dominant Qantas Airways, Mr Geoff Dixon, acknowledged the experience of Mr Bonderman and Mr Frank in the industry, saying: "These are serious people and we will take them seriously."
Virgin Blue's head of commercial operations, Mr David Hutt-
ner, said the carrier had always expected a third competitor and that the deal was "interesting".
"I think they'll find it's a very different operating environment in Australia," he said.
Tesna said that under the heads of agreement, Mr Bonderman's and Mr Franke's Air Partners III Australia would "contribute human resources, intellectual and financial capital and an international network of industry relationships to Ansett".
Mr Franke, who will oversee the investment, would work with Mr Fox and Mr Lew to appoint the senior management team. This is expected to be finalised this week.
There has been speculation about several candidates for the chief executive role, including former British Midlands executive Mr James Hogan, ex-Continental Airlines executive Mr Greg Brennerman, former Qantas executive turned Singapore consultant Mr Peter Stainlay, Ansett chief operating officer Captain Trevor Jensen and even Brisbane Lord Mayor Mr Jim Soorley.
Fox, Lew find new Ansett backer
Dec 18
Jane Boyle
A powerful international syndicate has thrown its weight behind the bid for Ansett by the Fox-Lew Tesna group, boosting its chances of a successful relaunch of the collapsed airline.
The consortium, led by the chairman of UK budget carrier Ryanair and Continental Airlines director, Mr David Bonderman, and a former chief executive of America West Airlines, Mr Bill Franke, has agreed to take between 35 per cent and 49 per cent of Tesna and play an active role in the management of the airline.
The deal puts pressure on Sir Richard Branson's no-frills carrier, Virgin Blue, which is also searching for an equity partner and has held talks with the Texas Pacific Group of Mr Bonderman and Mr Franke, among other potential investors.
It also leaves Singapore Airlines, which had been discussing a management contract with Tesna and the Ansett administrators, without a direct role in an Australian carrier. However, Tesna is negotiating commercial arrangements with Singapore and other Star Alliance carriers.
"Having looked first hand at Ansett and the overall market in Australia, I am convinced Ansett can be restored to being a great airline, and a great business, of which employees and the travelling public can be proud," Mr Franke said in a statement yesterday.
Ansett's administrators have conditionally sold the airline's mainline operations to Tesna.
However, the deal requires approval from Ansett's creditors at a meeting in January and is still being contested by Lang Corporation and Virgin Blue.
The chief executive of the dominant Qantas Airways, Mr Geoff Dixon, acknowledged the experience of Mr Bonderman and Mr Frank in the industry, saying: "These are serious people and we will take them seriously."
Virgin Blue's head of commercial operations, Mr David Hutt-
ner, said the carrier had always expected a third competitor and that the deal was "interesting".
"I think they'll find it's a very different operating environment in Australia," he said.
Tesna said that under the heads of agreement, Mr Bonderman's and Mr Franke's Air Partners III Australia would "contribute human resources, intellectual and financial capital and an international network of industry relationships to Ansett".
Mr Franke, who will oversee the investment, would work with Mr Fox and Mr Lew to appoint the senior management team. This is expected to be finalised this week.
There has been speculation about several candidates for the chief executive role, including former British Midlands executive Mr James Hogan, ex-Continental Airlines executive Mr Greg Brennerman, former Qantas executive turned Singapore consultant Mr Peter Stainlay, Ansett chief operating officer Captain Trevor Jensen and even Brisbane Lord Mayor Mr Jim Soorley.
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Tues "Sydney Morning Herald":
Ansett's generous new partner means it'll soon be raining cheap tickets
By Darren Goodsir, Transport Writer
Air travellers seem certain to be bombarded with cheap fares after Ansett's prospective owners, Solomon Lew and Lindsay Fox, linked up with an airline boss who has just dumped 50,000 free seats on to the holiday market.
Their breakthrough partnership deal yesterday with a United States-based consortium, Air Partners - headed by David Bonderman and the former chief executive of America West Airlines, Bill Franke - has all but guaranteed Ansett's survival.
It also opens up the prospect of a fare war in the new year, with Qantas and Virgin Blue certain to flood the market with cheap tickets.
Mr Bonderman is chairman of the European carrier Ryanair, whose most recent marketing ploy has been giving away tickets. Four days ago, it put 50,000 seats on the market for trips between Glasgow and London, charging Internet customers only airport taxes and charges.
Air Partners beat Singapore Airlines for the chance to help resurrect Ansett, grounded in September with debts totalling more than $2 billion.
It is understood that Air Partners wants to revive Ansett as a full-service, two-class airline pitched aggressively at corporate accounts and offering a limited number of budget fares to attract leisure travellers.
Initially, flights to the five major mainland cities will continue, but more services on these routes are expected.
However, there is no commitment yet to revive some of the 70 billion points frozen in Ansett's frequent flyer program - considered essential in winning back once-loyal patrons.
Mr Lew and Mr Fox said Air Partners would "contribute human resources, intellectual and financial capital and an international network of industry relationships to Ansett". It also offered "significant and successful airline and aircraft finance experience ..."
It is understood that Air Partners has agreed to take a 40 per cent stake in Ansett, which hopes to relaunch itself progressively from January 31 with 29 new Airbus A320s.
Mr Lew and Mr Fox will become co-chairmen, sharing management control with the Air Partners group.
The deal sidelines the bid by Virgin Blue and Lang Corp to win over wavering creditors and buy Ansett's freight, maintenance and terminal facilities, and take on 2000 workers.
Sources close to the deal said the principals of Air Partners had a record of rebuilding failed airlines, with Mr Bonderman being a lead player in the rescue from bankruptcy of Continental Airlines, which is now the fifth-largest US carrier, although it has suffered from the global fallout after the September 11 terrorist attacks.
Mr Bonderman, a director of Continental, said in a joint statement with Mr Lew and Mr Fox's Tesna syndicate that he believed Ansett represented "a unique circumstance where we, working with committed local partners, can restore and build value".
Mr Franke, meanwhile, will be mostly in Melbourne over the next few weeks selecting key personnel.
The chief executive of Qantas, Geoff Dixon, whose airline has assumed more than 80 per cent of the market after Ansett's demise, alluded to a fare war, saying: "These are serious people and we will take them seriously."
Virgin Blue's head of commercial, David Huttner, described the partners as purely "venture capitalists".
"It is interesting, but we always assumed Ansett would go forward in one way or another. We will be sticking to our strategy. Clearly, these are known people in this industry - but Australia is a lot different to where they have been operating."
Ansett's generous new partner means it'll soon be raining cheap tickets
By Darren Goodsir, Transport Writer
Air travellers seem certain to be bombarded with cheap fares after Ansett's prospective owners, Solomon Lew and Lindsay Fox, linked up with an airline boss who has just dumped 50,000 free seats on to the holiday market.
Their breakthrough partnership deal yesterday with a United States-based consortium, Air Partners - headed by David Bonderman and the former chief executive of America West Airlines, Bill Franke - has all but guaranteed Ansett's survival.
It also opens up the prospect of a fare war in the new year, with Qantas and Virgin Blue certain to flood the market with cheap tickets.
Mr Bonderman is chairman of the European carrier Ryanair, whose most recent marketing ploy has been giving away tickets. Four days ago, it put 50,000 seats on the market for trips between Glasgow and London, charging Internet customers only airport taxes and charges.
Air Partners beat Singapore Airlines for the chance to help resurrect Ansett, grounded in September with debts totalling more than $2 billion.
It is understood that Air Partners wants to revive Ansett as a full-service, two-class airline pitched aggressively at corporate accounts and offering a limited number of budget fares to attract leisure travellers.
Initially, flights to the five major mainland cities will continue, but more services on these routes are expected.
However, there is no commitment yet to revive some of the 70 billion points frozen in Ansett's frequent flyer program - considered essential in winning back once-loyal patrons.
Mr Lew and Mr Fox said Air Partners would "contribute human resources, intellectual and financial capital and an international network of industry relationships to Ansett". It also offered "significant and successful airline and aircraft finance experience ..."
It is understood that Air Partners has agreed to take a 40 per cent stake in Ansett, which hopes to relaunch itself progressively from January 31 with 29 new Airbus A320s.
Mr Lew and Mr Fox will become co-chairmen, sharing management control with the Air Partners group.
The deal sidelines the bid by Virgin Blue and Lang Corp to win over wavering creditors and buy Ansett's freight, maintenance and terminal facilities, and take on 2000 workers.
Sources close to the deal said the principals of Air Partners had a record of rebuilding failed airlines, with Mr Bonderman being a lead player in the rescue from bankruptcy of Continental Airlines, which is now the fifth-largest US carrier, although it has suffered from the global fallout after the September 11 terrorist attacks.
Mr Bonderman, a director of Continental, said in a joint statement with Mr Lew and Mr Fox's Tesna syndicate that he believed Ansett represented "a unique circumstance where we, working with committed local partners, can restore and build value".
Mr Franke, meanwhile, will be mostly in Melbourne over the next few weeks selecting key personnel.
The chief executive of Qantas, Geoff Dixon, whose airline has assumed more than 80 per cent of the market after Ansett's demise, alluded to a fare war, saying: "These are serious people and we will take them seriously."
Virgin Blue's head of commercial, David Huttner, described the partners as purely "venture capitalists".
"It is interesting, but we always assumed Ansett would go forward in one way or another. We will be sticking to our strategy. Clearly, these are known people in this industry - but Australia is a lot different to where they have been operating."
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We certainly do live in interesting times!
One thing to remember about all of this is that without terminal facilities in the major ports apart from Brisbane,it looks like Virgin Blue may be severly hamstrung and left flapping in the wind.
Mr Huttner admitted himself having discussed with these 2 American individuals toward investing in Virgin Blue.
VB is left to rely on their daily cash flow for survival, so if a serious equity partner is not forthcoming then VB's days may be numbered.
They can no longer depend upon Richard Bransons pockets (now empty) for support.
No terminal space at Melbourne/Sydney makes this even less likely for an equity partner.
Singapore Airlines to the rescue of Virgin Blue???
They couldn't even make the Ansett MkII thing work at little or no expense to themselves and there is no way without premium seating/business class that SQ would use VB for domestic on-carriage - let alone make another shonky investment.
Dr Cheong is under intense pressure after the way Air New Zealand/Ansett was handled with himself sitting on the board.
SQ has shown their true colours and have effectively been out-bidded but may still be able to participate to some degree and will in all reality agree to commercial negotiations for on-carriage etc.
Thumbs Up - interesting point about whether the hard-line Virgin Pilots would resign out of principle if Chris Corrigans Lang Corp were to purchase into Virgin Blue after what he did to crush and restrict unionised labour in this country.
It'd be even more interesting if these two from the USA actually were to buy into VB what it would do to their already low pay and conditions!
Sort of makes Sir Peter Abeles/Rupert Murdoch/Bob Hawke look like responsible leaders with employees and the publics best interests at heart!
[ 17 December 2001: Message edited by: 1013 ]
One thing to remember about all of this is that without terminal facilities in the major ports apart from Brisbane,it looks like Virgin Blue may be severly hamstrung and left flapping in the wind.
Mr Huttner admitted himself having discussed with these 2 American individuals toward investing in Virgin Blue.
VB is left to rely on their daily cash flow for survival, so if a serious equity partner is not forthcoming then VB's days may be numbered.
They can no longer depend upon Richard Bransons pockets (now empty) for support.
No terminal space at Melbourne/Sydney makes this even less likely for an equity partner.
Singapore Airlines to the rescue of Virgin Blue???
They couldn't even make the Ansett MkII thing work at little or no expense to themselves and there is no way without premium seating/business class that SQ would use VB for domestic on-carriage - let alone make another shonky investment.
Dr Cheong is under intense pressure after the way Air New Zealand/Ansett was handled with himself sitting on the board.
SQ has shown their true colours and have effectively been out-bidded but may still be able to participate to some degree and will in all reality agree to commercial negotiations for on-carriage etc.
Thumbs Up - interesting point about whether the hard-line Virgin Pilots would resign out of principle if Chris Corrigans Lang Corp were to purchase into Virgin Blue after what he did to crush and restrict unionised labour in this country.
It'd be even more interesting if these two from the USA actually were to buy into VB what it would do to their already low pay and conditions!
Sort of makes Sir Peter Abeles/Rupert Murdoch/Bob Hawke look like responsible leaders with employees and the publics best interests at heart!
[ 17 December 2001: Message edited by: 1013 ]
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Can't help having misgivings about this pair of interlopers. The only hopeful sign is the mention that a new senior management team will be selected. With luck that will lead to the removal of one significant "headwind" from those ranks.
Best wishes and good luck to AN staff but i fear for you.
Best wishes and good luck to AN staff but i fear for you.
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VB pilots would have to resign on principle??? Where do some of you guys dream up this stuff!! 89ers resigned because of "Raining Writs" from the heavens and is that happening re Lang? Did that happen in the dock dispute? I think not , so you are comparing chalk with Cheese
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Kaptin X,
Don't agree with Kap M's last sentiment..."who gives a ****".
I have many friends in all sections of AN, not only pilots, and have great sympathy for their plight.
Kap M et al in their hell bent endeavour to seek revenge wish ill to 16000 ex AN employees and many others in related industries.
Just considering the 16000 ex AN employees the tragedy in personal terms is 20 times the magnitude of the '89 debacle imposed on the pilots.
And at least Kap M DID get his entitlements.
Don't agree with Kap M's last sentiment..."who gives a ****".
I have many friends in all sections of AN, not only pilots, and have great sympathy for their plight.
Kap M et al in their hell bent endeavour to seek revenge wish ill to 16000 ex AN employees and many others in related industries.
Just considering the 16000 ex AN employees the tragedy in personal terms is 20 times the magnitude of the '89 debacle imposed on the pilots.
And at least Kap M DID get his entitlements.
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[Dow Jones] Investors spooked by arrival of experienced airline execs David Bonderman and Bill Franke onto local airline market, driving Qantas' share price 3.0% lower to A$3.74 with some 7.5 million shares traded in first 2 hours, says Sydney-based senior dealer at major institutional bank. Dealer says a "major cause of concern" for Qantas after Solomon Lew and Lindsay Fox secured Bonderman and Franke to take an equity stake in a revised Ansett. Notes agreement may have been in the pipeline for a while but Lew-Fox may have been trying to get government concessions first.
Evertonian
Sorry Capt Overunder....you had better redefine the word "scab" for us....perhaps it would be better if you resd the comment in the context it was intended. 
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FSU,
I don't often agree with Kaptin M, but when he says AN employees are about to get financially screwed, I believe he's right. I don't agree that they should be, but these two guys who are coming in aren't respecters of people or their rights. They call it business; I call it immoral. Who wins?
I don't often agree with Kaptin M, but when he says AN employees are about to get financially screwed, I believe he's right. I don't agree that they should be, but these two guys who are coming in aren't respecters of people or their rights. They call it business; I call it immoral. Who wins?
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FSU,
Copy!
It seems curious to me that someone who signs off 'who gives a (presumably the next word starts with f) even bothers to contribute at all.
Oh well, I don't have a mortgage on all the knowledge of human nature.
Copy!
It seems curious to me that someone who signs off 'who gives a (presumably the next word starts with f) even bothers to contribute at all.
Oh well, I don't have a mortgage on all the knowledge of human nature.
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Sorry to get back to the subject... <img src="rolleyes.gif" border="0">
This is the latest news on Ansett........
(QUOTE)
Thu, Dec 20 2001 1:04 PM AEDT
Agreement reached over Ansett workers' conditions
A startup agreement has been reached with unions and the Fox-Lew consortium over conditions for workers once the group takes control of Ansett in February next year.
The ACTU says the agreement contains pay rates that will be broadly comparable to previous Ansett and Qantas levels and a commitment to guarantee employee entitlements.
Up to 4,000 Ansett workers are expected to keep their jobs.
Ansett's administrators announced yesterday all staff made redundant should receive their payments by the end of the week.
This is the latest news on Ansett........
(QUOTE)
Thu, Dec 20 2001 1:04 PM AEDT
Agreement reached over Ansett workers' conditions
A startup agreement has been reached with unions and the Fox-Lew consortium over conditions for workers once the group takes control of Ansett in February next year.
The ACTU says the agreement contains pay rates that will be broadly comparable to previous Ansett and Qantas levels and a commitment to guarantee employee entitlements.
Up to 4,000 Ansett workers are expected to keep their jobs.
Ansett's administrators announced yesterday all staff made redundant should receive their payments by the end of the week.
