Virgin Blue To Topple The Fox-Lew Bid For Ansett?
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Now it is being reported that BOTH bids could actually go ahead... 
(QUOTE)
Australian transport giant closer to controlling Virgin Blue
Virgin Blue and Lang Corporation will meet with Ansett's administrators tomorrow to discuss the sale of Ansett aircraft and terminal space.
It comes as Virgin Blue's Richard Branson agrees to sell his majority interest in the airline to Lang.
The agreement would involve Lang providing a $300 million capital injection to Virgin, funds that would be used to expand the airline.
Both companies will speak with Ansett's administrators tomorrow about buying key assets and infrastructure.
Virgin Blue chief executive Brett Godfrey says the proposal could be an alternative or back up to the Fox-Lew bid for Ansett.
"If they want someone else who's serious, I'm not too sure there has been any other serious bid at this stage, I think we can offer that," he said.
But he says even if the Fox-Lew deal proceeds there could be room for Virgin's plans.
"I, frankly from my point of view, can't see them utilising all of the facilities. We'd be even happy to talk to them about expanding our opportunities," he said.
Virgin will also meet with the New Zealand Government tomorrow about operating on trans-Tasman routes.
The deal would see Virgin Blue become an Australian airline.
Speaking on Channel Nine this morning Lang chief executive Chris Corrigan said the deal would involve a significant cash injection to Virgin Blue to enable it to grow quicker than it has in the past.
"We're prepared to inject $300 million into Virgin in order to make it a much larger competitor with Qantas today," he said.
Mr Corrigan says Virgin Blue has a unique and exciting business model.
"We're very attracted to that, we think there is a great opportunity much larger operator in the Australian market," he said.
But he says the airline needs the finance to buy access to terminals and aircraft to increase its presence in the domestic aviation industry.
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Queensland Premier Peter Beattie has welcomed news that Virgin Blue could become an Australian-owned airline.
Mr Beattie says Queensland stands to make considerable gains if the deal goes ahead.
"So we have a win-win everywhere," Mr Beattie said.
"We have an airline based in Queensland which Queenslanders see as their own.
"It's Australian-owned, it gets access to the New Zealand market, competition.
"At a time like this, after September 11, we've needed as much competition amongst airlines as possible."
(QUOTE)
Australian transport giant closer to controlling Virgin Blue
Virgin Blue and Lang Corporation will meet with Ansett's administrators tomorrow to discuss the sale of Ansett aircraft and terminal space.
It comes as Virgin Blue's Richard Branson agrees to sell his majority interest in the airline to Lang.
The agreement would involve Lang providing a $300 million capital injection to Virgin, funds that would be used to expand the airline.
Both companies will speak with Ansett's administrators tomorrow about buying key assets and infrastructure.
Virgin Blue chief executive Brett Godfrey says the proposal could be an alternative or back up to the Fox-Lew bid for Ansett.
"If they want someone else who's serious, I'm not too sure there has been any other serious bid at this stage, I think we can offer that," he said.
But he says even if the Fox-Lew deal proceeds there could be room for Virgin's plans.
"I, frankly from my point of view, can't see them utilising all of the facilities. We'd be even happy to talk to them about expanding our opportunities," he said.
Virgin will also meet with the New Zealand Government tomorrow about operating on trans-Tasman routes.
The deal would see Virgin Blue become an Australian airline.
Speaking on Channel Nine this morning Lang chief executive Chris Corrigan said the deal would involve a significant cash injection to Virgin Blue to enable it to grow quicker than it has in the past.
"We're prepared to inject $300 million into Virgin in order to make it a much larger competitor with Qantas today," he said.
Mr Corrigan says Virgin Blue has a unique and exciting business model.
"We're very attracted to that, we think there is a great opportunity much larger operator in the Australian market," he said.
But he says the airline needs the finance to buy access to terminals and aircraft to increase its presence in the domestic aviation industry.
Support
Queensland Premier Peter Beattie has welcomed news that Virgin Blue could become an Australian-owned airline.
Mr Beattie says Queensland stands to make considerable gains if the deal goes ahead.
"So we have a win-win everywhere," Mr Beattie said.
"We have an airline based in Queensland which Queenslanders see as their own.
"It's Australian-owned, it gets access to the New Zealand market, competition.
"At a time like this, after September 11, we've needed as much competition amongst airlines as possible."
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Lang, Virgin team admit difficulties
26nov01
THE main players in the Lang Corporation/Virgin Blue bid for Ansett assets emerged today from a meeting with the airline's administrators admitting they faced a difficult task.
Lang Corp managing director Chris Corrigan agreed the bid might not have a hope unless Melbourne businessmen Solomon Lew and Lindsay Fox pulled out their rival $3.6 billion bid.
"That's probably, technically, so," Mr Corrigan said.
"But the Fox/Lew proposals have a large number of conditions precedent, as we understand it, and who's to know whether those are satisfied or not?"
In a deal struck at the weekend, Lang Corp would take a majority stake in Virgin Blue if it successfully bid for Ansett's assets and infrastructure.
The administrators, Mark Mentha and Mark Korda of Andersen, have conditionally agreed to sell the failed airline to Melbourne businessmen Mr Lew and Mr Fox.
Virgin Blue chief executive Brett Godfrey, who also met with the administrators, said they had put together a good alternative bid and he was confident the administrators would consider it.
"It's been made pretty clear that they are pursuing the Fox/Lew bid but there are a lot of conditions," he said.
"We have basically come out with a piece of paper that says we can do it with not too many conditions attached to what we are asking, other than for more information."
He denied the companies had been tardy in putting their proposal forward, saying discussions had been underway for some weeks.
Richard Branson's Virgin Blue could become Australian-controlled after transport logistics giant agreed to take a majority $300 million stake in the airline.
However, the deal hinges on Lang Corp buying the assets and infrastructure of collapsed carrier Ansett.
"Virgin Blue now is the second airline in Australia and it's got a very unique and exciting business model and so we're very attracted to that," Mr Corrigan told Channel Nine yesterday.
"There's a great opportunity for it to become a much larger operator in the Australian market and to offer a very significant difference to what, in terms of passenger offering, than what Qantas is offering today."
But Mr Corrigan said "there's not much point in expanding Virgin if it's going to not be able to get access to key assets that would allow it to expand rapidly".
He said the Virgin/Lang Corp plan incorporated the Ansett terminals, maintenance facilities, and around 1500 Ansett staff
. He said the airline, under Lang Corp, would maintain its low fares and one class operation.
"This is a very modern and a very successful business model," he said. "It's been tried elsewhere in the world and it would offer a very significant point of difference ... to the Qantas two-class, full service airline."
Mr Godfrey said his company could capture 30 per cent of Australia's domestic aviation market if the deal with Lang Corp and Ansett was successful.
Mr Godfrey said Virgin Blue had agreed to the Lang Corp deal because its current facilities would reach maximum capacity in about 18 months and Ansett's terminals and other facilities would allow it to grow substantially.
Last Thursday, Federal Transport Minister John Anderson said the Fox/Lew consortium would not receive government financial assistance.
Following a meeting with the businessmen, Mr Anderson said all outstanding issues had been resolved apart from two regulatory issues which he declined to detail.
Asked whether this meant the bid would now proceed, Mr Lew said: "We've signed a transaction with the administrators, so therefore we have somewhat bought Ansett but it does have conditions."
Mr Godfrey said if the Virgin/Lang/Ansett deal was unsuccessful, Virgin would continue its current operations.
Today the ACTU said only 2000 former Ansett workers would keep their jobs under the Virgin-Lang proposal to buy the failed airline.
ACTU secretary Greg Combet told ABC radio the jobs of the 16,000 staff should be the focus of any takeover.
And he questioned the viability of a the proposal by discount airline Virgin Blue and transport logistics giant Lang Corporation.
AAP
26nov01
THE main players in the Lang Corporation/Virgin Blue bid for Ansett assets emerged today from a meeting with the airline's administrators admitting they faced a difficult task.
Lang Corp managing director Chris Corrigan agreed the bid might not have a hope unless Melbourne businessmen Solomon Lew and Lindsay Fox pulled out their rival $3.6 billion bid.
"That's probably, technically, so," Mr Corrigan said.
"But the Fox/Lew proposals have a large number of conditions precedent, as we understand it, and who's to know whether those are satisfied or not?"
In a deal struck at the weekend, Lang Corp would take a majority stake in Virgin Blue if it successfully bid for Ansett's assets and infrastructure.
The administrators, Mark Mentha and Mark Korda of Andersen, have conditionally agreed to sell the failed airline to Melbourne businessmen Mr Lew and Mr Fox.
Virgin Blue chief executive Brett Godfrey, who also met with the administrators, said they had put together a good alternative bid and he was confident the administrators would consider it.
"It's been made pretty clear that they are pursuing the Fox/Lew bid but there are a lot of conditions," he said.
"We have basically come out with a piece of paper that says we can do it with not too many conditions attached to what we are asking, other than for more information."
He denied the companies had been tardy in putting their proposal forward, saying discussions had been underway for some weeks.
Richard Branson's Virgin Blue could become Australian-controlled after transport logistics giant agreed to take a majority $300 million stake in the airline.
However, the deal hinges on Lang Corp buying the assets and infrastructure of collapsed carrier Ansett.
"Virgin Blue now is the second airline in Australia and it's got a very unique and exciting business model and so we're very attracted to that," Mr Corrigan told Channel Nine yesterday.
"There's a great opportunity for it to become a much larger operator in the Australian market and to offer a very significant difference to what, in terms of passenger offering, than what Qantas is offering today."
But Mr Corrigan said "there's not much point in expanding Virgin if it's going to not be able to get access to key assets that would allow it to expand rapidly".
He said the Virgin/Lang Corp plan incorporated the Ansett terminals, maintenance facilities, and around 1500 Ansett staff
. He said the airline, under Lang Corp, would maintain its low fares and one class operation.
"This is a very modern and a very successful business model," he said. "It's been tried elsewhere in the world and it would offer a very significant point of difference ... to the Qantas two-class, full service airline."
Mr Godfrey said his company could capture 30 per cent of Australia's domestic aviation market if the deal with Lang Corp and Ansett was successful.
Mr Godfrey said Virgin Blue had agreed to the Lang Corp deal because its current facilities would reach maximum capacity in about 18 months and Ansett's terminals and other facilities would allow it to grow substantially.
Last Thursday, Federal Transport Minister John Anderson said the Fox/Lew consortium would not receive government financial assistance.
Following a meeting with the businessmen, Mr Anderson said all outstanding issues had been resolved apart from two regulatory issues which he declined to detail.
Asked whether this meant the bid would now proceed, Mr Lew said: "We've signed a transaction with the administrators, so therefore we have somewhat bought Ansett but it does have conditions."
Mr Godfrey said if the Virgin/Lang/Ansett deal was unsuccessful, Virgin would continue its current operations.
Today the ACTU said only 2000 former Ansett workers would keep their jobs under the Virgin-Lang proposal to buy the failed airline.
ACTU secretary Greg Combet told ABC radio the jobs of the 16,000 staff should be the focus of any takeover.
And he questioned the viability of a the proposal by discount airline Virgin Blue and transport logistics giant Lang Corporation.
AAP
Evertonian
Well, talk about going the long bluddy way round!
DJ using AN terminals & SQ pulling the strings from somewhere in the background (eventually). Phew! We could've saved a few lives if some idiots got this right from the start!!
DJ using AN terminals & SQ pulling the strings from somewhere in the background (eventually). Phew! We could've saved a few lives if some idiots got this right from the start!!
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ABC News Net:
Govt rules out key Fox-Lew demands
The Federal Government has ruled out two key demands of the Fox-Lew consortium, which wants to buy Ansett.
Cabinet has decided not to meet the consortium's request for tougher competition laws for the aviation industry and financial assistance.
But the Transport Minister, John Anderson, says the Australian Competition and Consumer Commission (ACCC) will continue to monitor the aviation market for breaches of existing trade laws.
Mr Anderson says the Government has delivered its final position, and it is now up to the Fox-Lew consortium and the administrators to decide their next move.
"We believe that the increased surveillance that the ACCC is already undertaking should be appropriate and adequate.
"We will continue to develop the code of conduct that Qantas has offered between ourselves and officials," the Transport Minister said.
Govt rules out key Fox-Lew demands
The Federal Government has ruled out two key demands of the Fox-Lew consortium, which wants to buy Ansett.
Cabinet has decided not to meet the consortium's request for tougher competition laws for the aviation industry and financial assistance.
But the Transport Minister, John Anderson, says the Australian Competition and Consumer Commission (ACCC) will continue to monitor the aviation market for breaches of existing trade laws.
Mr Anderson says the Government has delivered its final position, and it is now up to the Fox-Lew consortium and the administrators to decide their next move.
"We believe that the increased surveillance that the ACCC is already undertaking should be appropriate and adequate.
"We will continue to develop the code of conduct that Qantas has offered between ourselves and officials," the Transport Minister said.
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What a surprise the government stay behind QN. My impressions of the Lang deal is it is a straight request of interest in liquidated assets. To call it a bid is a load of crap..
