News: Flight West into administration again
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News: Flight West into administration again
Flight West into administration
Steve Creedy, Richard Gluyas and Andrew McGarry
05dec01
QUEENSLAND'S biggest regional airline was placed in voluntary administration yesterday after the revamped airline came within a week of being sold.
Flight West Airlines liquidator Ian Hall was on the verge of selling the airline earlier this year at a price that would have paid out creditors in full, when the deal crumpled under the September 11 terrorist attacks and the demise of Ansett.
"We were about a week away, it was very frustrating," the PricewaterhouseCoopers liquidator said yesterday.
Ferrier Hodgson was appointed voluntary administrators of Flight West and Horwath of Airline Facilities, which owns most of the aircraft.
Flight West was placed in voluntary liquidation in June but has since restructured and restarted scheduled flights on two routes out of Brisbane and provides contract services to mining companies.
Mr Hall said yesterday the decision to proceed to voluntary administration would not affect the airline's ability to operate the services.
He said the terrorist attacks and collapse of Ansett, Flight West's main commercial partner, made it difficult to sell the airline for an amount that would enable creditors to be paid in full.
This triggered a Corporations Act requirement that it be placed in administration.
The Flight West administration underscores the difficult environment facing Fox-Lew syndicate Tesna's moves to decide its management structure for Ansett Mark II by the end of next week.
The management decision is important to Tesna's bid for regulatory approval to operate the new airline by the planned launch date of January 31.
Singapore Airlines has completed a detailed business plan for the new airline and is in discussions about a management role.
With the clock ticking, however, Tesna is looking at alternative options such as hiring its own airline management team, possibly backed by consultants, or engaging a management group. The consortium might also this week reveal new routes and schedules so it can begin selling tickets beyond January 31.
In other developments, Australian Competition and Consumer Commission chairman Allan Fels said the commission's investigation into the airline industry should wind up by Christmas.
The ACCC is investigating about a dozen complaints by Virgin Blue, the Ansett administrators and an airport concerning alleged anti-competitive behaviour.
Steve Creedy, Richard Gluyas and Andrew McGarry
05dec01
QUEENSLAND'S biggest regional airline was placed in voluntary administration yesterday after the revamped airline came within a week of being sold.
Flight West Airlines liquidator Ian Hall was on the verge of selling the airline earlier this year at a price that would have paid out creditors in full, when the deal crumpled under the September 11 terrorist attacks and the demise of Ansett.
"We were about a week away, it was very frustrating," the PricewaterhouseCoopers liquidator said yesterday.
Ferrier Hodgson was appointed voluntary administrators of Flight West and Horwath of Airline Facilities, which owns most of the aircraft.
Flight West was placed in voluntary liquidation in June but has since restructured and restarted scheduled flights on two routes out of Brisbane and provides contract services to mining companies.
Mr Hall said yesterday the decision to proceed to voluntary administration would not affect the airline's ability to operate the services.
He said the terrorist attacks and collapse of Ansett, Flight West's main commercial partner, made it difficult to sell the airline for an amount that would enable creditors to be paid in full.
This triggered a Corporations Act requirement that it be placed in administration.
The Flight West administration underscores the difficult environment facing Fox-Lew syndicate Tesna's moves to decide its management structure for Ansett Mark II by the end of next week.
The management decision is important to Tesna's bid for regulatory approval to operate the new airline by the planned launch date of January 31.
Singapore Airlines has completed a detailed business plan for the new airline and is in discussions about a management role.
With the clock ticking, however, Tesna is looking at alternative options such as hiring its own airline management team, possibly backed by consultants, or engaging a management group. The consortium might also this week reveal new routes and schedules so it can begin selling tickets beyond January 31.
In other developments, Australian Competition and Consumer Commission chairman Allan Fels said the commission's investigation into the airline industry should wind up by Christmas.
The ACCC is investigating about a dozen complaints by Virgin Blue, the Ansett administrators and an airport concerning alleged anti-competitive behaviour.
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Flight West staff payouts could be bare minimum: administrator
The administrator of Flight West airlines says former staff may receive as little as 20 cents in the dollar of what they are owed.
Peter Gerros from Ferrier Hodgson says the value of the airline's major assets - its aircraft - has deteriorated rapidly since the September 11 terror attacks and collapse of Ansett.
"Now that is premised ... on a worst case scenario," he said.
"What we are attempting to do is to preserve the business as a going concern and to sell it as such, being mindful of the fact that PricewaterhouseCoopers similarly made an attempt to sell the business as a going concern.
"But given the current state of the industry I don't think our job's going to be particularly easy in that regard."
The administrator of Flight West airlines says former staff may receive as little as 20 cents in the dollar of what they are owed.
Peter Gerros from Ferrier Hodgson says the value of the airline's major assets - its aircraft - has deteriorated rapidly since the September 11 terror attacks and collapse of Ansett.
"Now that is premised ... on a worst case scenario," he said.
"What we are attempting to do is to preserve the business as a going concern and to sell it as such, being mindful of the fact that PricewaterhouseCoopers similarly made an attempt to sell the business as a going concern.
"But given the current state of the industry I don't think our job's going to be particularly easy in that regard."
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This is the first time FWA has been in administration, it was in "Members Voluntary Liquidation" which gauranteed everyone 100c/$. That is not now possible but the picture painted by the Administrator is by necessity a "worst case scenario".
It is not over yet, the staff could still see 100c/$ and it also makes the company easier to sell, which is what the sticking point was before,ie having to produce 100c/$
It is not over yet, the staff could still see 100c/$ and it also makes the company easier to sell, which is what the sticking point was before,ie having to produce 100c/$
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Imagine you're a beancounter offered the administration of FW. Your initial assessment is that the operation can continue as is for some months, so you have time to tweak the seam for a bit more spin. How do you begin? One choice would be to lay out the worst case scenario so that your actual performance in saving the company looks heroic...
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dlf,
Care to put a few scratchies on the final cents in the dollar the employees receive including the EESS kick in? Pick a 10% range (say 60 to 69, as the current minimum looks to be) and work that seam...
Cheers
Care to put a few scratchies on the final cents in the dollar the employees receive including the EESS kick in? Pick a 10% range (say 60 to 69, as the current minimum looks to be) and work that seam...
Cheers
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32 bits,
EESS does not figure unless it is less than 50c/$. However for the sake of another scratchie 75c +/- 10% is my bet, although I was almost "assured" that 100c/$ was the go.
Scratchie no 1 looked a bit sus until the wickie went for seven!
100c/0c, immaterial as long as QA is a very strong, backed, goer!!
By the way "32 bits", does that have an IT or biblical origin?
Fox Trotter,it is all very tough, but the problem is not how the end game is being played, but how the chess board was set out in the beginning! If anybody is to be blamed it is Friar Tuck and Mini Junior, the possible outcome from here on in is far better than what they offered, even on June 19. FWA will prosper hence my optimism for one and all.
There endeth the sermon
EESS does not figure unless it is less than 50c/$. However for the sake of another scratchie 75c +/- 10% is my bet, although I was almost "assured" that 100c/$ was the go.
Scratchie no 1 looked a bit sus until the wickie went for seven!
100c/0c, immaterial as long as QA is a very strong, backed, goer!!
By the way "32 bits", does that have an IT or biblical origin?
Fox Trotter,it is all very tough, but the problem is not how the end game is being played, but how the chess board was set out in the beginning! If anybody is to be blamed it is Friar Tuck and Mini Junior, the possible outcome from here on in is far better than what they offered, even on June 19. FWA will prosper hence my optimism for one and all.
There endeth the sermon
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FoxTrotter and Updraft,
Getting on to thin ice here. If you know/knew the big bwanas back then it should not be too difficult to work out.
Lets say Friar Tuck drove a Sheerwood coloured people mover, came from a land where country music went down well. I also believe that the legend has it that Friar Tuck was a large rotund gentleman. If you can't work it out from here you did not know the system well enough and I will say no more.
If you do get it post your conclusion, in code, to let me know if you are right.
Getting on to thin ice here. If you know/knew the big bwanas back then it should not be too difficult to work out.
Lets say Friar Tuck drove a Sheerwood coloured people mover, came from a land where country music went down well. I also believe that the legend has it that Friar Tuck was a large rotund gentleman. If you can't work it out from here you did not know the system well enough and I will say no more.
If you do get it post your conclusion, in code, to let me know if you are right.
