Virgin Blue To Topple The Fox-Lew Bid For Ansett?
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Virgin Blue To Topple The Fox-Lew Bid For Ansett?
*Virgin Blue set to challenge Fox-Lew Ansett deal*
Virgin Blue and transport logistics group Lang Corporation have met with
the Federal Government to discuss a proposal that could topple the
Fox-Lew bid for Ansett.
The deal would enable Virgin Blue to expand its operations.
The proposal involves Lang acquiring Ansett terminal space and
infrastructure, as well as a cash injection to Virgin enabling the
airline to expand, possibly taking on up to 2,000 Ansett staff.
"Certainly those ideas we've looked at, but like I said no final aspects
of this proposal have been hammered out, it's truly really very much the
initial stages of discussion," said Virgin spokesman David Huttner.
Virgin and Lang met with Federal Transport minister John Anderson and
other senior government representatives yesterday to discuss the move.
At the same time the federal government's negotiations with Fox-Lew for
the sale of Ansett have stalled over the re-payment of a $195 million
loan.
Virgin Blue and transport logistics group Lang Corporation have met with
the Federal Government to discuss a proposal that could topple the
Fox-Lew bid for Ansett.
The deal would enable Virgin Blue to expand its operations.
The proposal involves Lang acquiring Ansett terminal space and
infrastructure, as well as a cash injection to Virgin enabling the
airline to expand, possibly taking on up to 2,000 Ansett staff.
"Certainly those ideas we've looked at, but like I said no final aspects
of this proposal have been hammered out, it's truly really very much the
initial stages of discussion," said Virgin spokesman David Huttner.
Virgin and Lang met with Federal Transport minister John Anderson and
other senior government representatives yesterday to discuss the move.
At the same time the federal government's negotiations with Fox-Lew for
the sale of Ansett have stalled over the re-payment of a $195 million
loan.
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Somehow I don't think so.
It is the administrators through the creditors and not the government who decide what bid is accepted.
This is at best a diversion in an attempt to stop AN getting up again.
Good try from the Virgin publicity dept.
It is the administrators through the creditors and not the government who decide what bid is accepted.
This is at best a diversion in an attempt to stop AN getting up again.
Good try from the Virgin publicity dept.
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Well it just might happen....... 
Now reporting the same thing on the radio news here. Apparently it involves (as in posting) Lang Corp purchasing much of the old Ansett infrastructure including terminals for use by Virgin, AND a cash injection from Lang to Virgin. It involves absolutely NO Government funding, unlike the Fox/Lew bid, and they are reporting that Virgin are warning against any more Government money for Ansett, and will challenge it if it does happen.
Whether you or I like it or not, must seem like a good idea to the Government, and just might happen.......
Now reporting the same thing on the radio news here. Apparently it involves (as in posting) Lang Corp purchasing much of the old Ansett infrastructure including terminals for use by Virgin, AND a cash injection from Lang to Virgin. It involves absolutely NO Government funding, unlike the Fox/Lew bid, and they are reporting that Virgin are warning against any more Government money for Ansett, and will challenge it if it does happen.
Whether you or I like it or not, must seem like a good idea to the Government, and just might happen.......
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Right after I report something on PPRuNe, all the other news services follow suit....... 
Now this item..........
(QUOTE)
Anderson, Lang, Virgin in talks
From AAP
17nov01
TRANSPORT logistics giant Lang Corporation and Virgin Blue have met with Federal Transport Minister John Anderson to discuss a proposal that reportedly could threaten to derail the Fox-Lew bid for Ansett.
A spokeswoman for Mr Anderson confirmed today the minister had met with Lang Corporation chief executive Chris Corrigan and Virgin Blue representatives for about an hour yesterday.
"Mr Corrigan was in the office yesterday afternoon for an hour or so," the spokeswoman said.
A newspaper report today said the proposed deal would enable Virgin Blue to expand its operations.
It comes as the Government signalled it was not prepared to meet key demands included in Lindsay Fox and Solomon Lew's bid to launch a restructured Ansett.
Ansett creditors endorsed the Fox-Lew bid on Thursday at a meeting that also heard Lang Corp hoped to acquire Ansett terminals and infrastructure, in conjunction with an equity deal with Virgin that would lead to the expansion of Virgin and the employment of about 2,000 Ansett staff.
"We have about a dozen or so corporations as potential investors in Virgin and some of them bring different strengths," Virgin spokesman David Huttner told ABC radio today.
"Certainly Lang is one of those parties - and they're a very strong and very respected organisation - but we'd be wanting to talk to all of them before we decide we want to go further."
A spokesman for Lang Corp quoted in today's newspaper report said the company was in talks with Virgin about "a range of opportunities in the aviation industry".
Now this item..........
(QUOTE)
Anderson, Lang, Virgin in talks
From AAP
17nov01
TRANSPORT logistics giant Lang Corporation and Virgin Blue have met with Federal Transport Minister John Anderson to discuss a proposal that reportedly could threaten to derail the Fox-Lew bid for Ansett.
A spokeswoman for Mr Anderson confirmed today the minister had met with Lang Corporation chief executive Chris Corrigan and Virgin Blue representatives for about an hour yesterday.
"Mr Corrigan was in the office yesterday afternoon for an hour or so," the spokeswoman said.
A newspaper report today said the proposed deal would enable Virgin Blue to expand its operations.
It comes as the Government signalled it was not prepared to meet key demands included in Lindsay Fox and Solomon Lew's bid to launch a restructured Ansett.
Ansett creditors endorsed the Fox-Lew bid on Thursday at a meeting that also heard Lang Corp hoped to acquire Ansett terminals and infrastructure, in conjunction with an equity deal with Virgin that would lead to the expansion of Virgin and the employment of about 2,000 Ansett staff.
"We have about a dozen or so corporations as potential investors in Virgin and some of them bring different strengths," Virgin spokesman David Huttner told ABC radio today.
"Certainly Lang is one of those parties - and they're a very strong and very respected organisation - but we'd be wanting to talk to all of them before we decide we want to go further."
A spokesman for Lang Corp quoted in today's newspaper report said the company was in talks with Virgin about "a range of opportunities in the aviation industry".
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Another slightly different slant on the same story.........
(QUOTE)
15:26 AEST Sat 17 Nov 2001
New deal threatens Fox-Lew Ansett bid
Transport logistics giant Lang Corporation and Virgin Blue have met with Federal Transport Minister John Anderson to discuss a proposal that reportedly could threaten to derail the Fox-Lew bid for Ansett.
A spokeswoman for Mr Anderson confirmed on Saturday the minister had met with Lang Corporation chief executive Chris Corrigan and Virgin Blue representatives for about an hour.
"Mr Corrigan was in the office yesterday afternoon for an hour or so," the spokeswoman said on Saturday.
The Australian Financial Review reported the proposed deal would enable Virgin Blue to expand its operations.
It comes as the government signalled it was not prepared to meet key demands included in Lindsay Fox and Solomon Lew bid to launch a restructured Ansett.
Ansett creditors endorsed the Fox-Lew bid on Thursday at a meeting that also heard Lang Corp hoped to acquire Ansett terminals and infrastructure, in conjunction with an equity deal with Virgin that would lead to the expansion of Virgin and the employment of about 2,000 Ansett staff.
"We have about a dozen or so corporations as potential investors in Virgin and some of them bring different strengths," Virgin spokesman David Huttner told ABC radio.
"Certainly Lang is one of those parties - and they're a very strong and very respected organisation - but we'd be wanting to talk to all of them before we decide we want to go further."
A spokesman for Lang Corp told the Financial Review newspaper the company was in talks with Virgin about "a range of opportunities in the aviation industry".
Mr Anderson on Friday baulked at committing the government to assisting with money for staff entitlements.
He refused to hand over a $195 million loan of federal money for staff entitlements which tempered optimism arising from an Ansett creditors' meeting on Friday.
(QUOTE)
15:26 AEST Sat 17 Nov 2001
New deal threatens Fox-Lew Ansett bid
Transport logistics giant Lang Corporation and Virgin Blue have met with Federal Transport Minister John Anderson to discuss a proposal that reportedly could threaten to derail the Fox-Lew bid for Ansett.
A spokeswoman for Mr Anderson confirmed on Saturday the minister had met with Lang Corporation chief executive Chris Corrigan and Virgin Blue representatives for about an hour.
"Mr Corrigan was in the office yesterday afternoon for an hour or so," the spokeswoman said on Saturday.
The Australian Financial Review reported the proposed deal would enable Virgin Blue to expand its operations.
It comes as the government signalled it was not prepared to meet key demands included in Lindsay Fox and Solomon Lew bid to launch a restructured Ansett.
Ansett creditors endorsed the Fox-Lew bid on Thursday at a meeting that also heard Lang Corp hoped to acquire Ansett terminals and infrastructure, in conjunction with an equity deal with Virgin that would lead to the expansion of Virgin and the employment of about 2,000 Ansett staff.
"We have about a dozen or so corporations as potential investors in Virgin and some of them bring different strengths," Virgin spokesman David Huttner told ABC radio.
"Certainly Lang is one of those parties - and they're a very strong and very respected organisation - but we'd be wanting to talk to all of them before we decide we want to go further."
A spokesman for Lang Corp told the Financial Review newspaper the company was in talks with Virgin about "a range of opportunities in the aviation industry".
Mr Anderson on Friday baulked at committing the government to assisting with money for staff entitlements.
He refused to hand over a $195 million loan of federal money for staff entitlements which tempered optimism arising from an Ansett creditors' meeting on Friday.
Moderate, Modest & Mild.
Forgive my ignorance, but HOW has the Government been roped into the sale of Ansett? I was under the impression that the sale - or otherwise - (to Messrs Fox and Lew - or others) would be determined by the current administrators, and the $195 million was EXCLUSIVELY for payment to Ansett employees, because of the shortfall left by Air New Zealand.
If the $195 million is bundled into the sale of Ansett, this effectively means that the travelling public, post September 13 (and I was one of those) have, unknowingly and unsolicited, FINANCIALLY assisted Messrs Fox and Lew with their acquistion.
I would have expected this type of tactic from our past, corrupt, little, silver bodgie Ozmate - but not from straight shootin' John Howard.
The money - ALL $195 million - rightfully belongs to Ansett employees. Give it to them, and if THEY want the Fox/Lew (ACTU) consortium to have it, let THEM donate it!
[ 17 November 2001: Message edited by: Kaptin M ]
If the $195 million is bundled into the sale of Ansett, this effectively means that the travelling public, post September 13 (and I was one of those) have, unknowingly and unsolicited, FINANCIALLY assisted Messrs Fox and Lew with their acquistion.
I would have expected this type of tactic from our past, corrupt, little, silver bodgie Ozmate - but not from straight shootin' John Howard.
The money - ALL $195 million - rightfully belongs to Ansett employees. Give it to them, and if THEY want the Fox/Lew (ACTU) consortium to have it, let THEM donate it!
[ 17 November 2001: Message edited by: Kaptin M ]
Evertonian
Here, Here Kaptin.
The money was to guarantee the entitlements ONLY. This was stated from day one. The unions & now Fox/Lew think they can grab it to fund the airline. It was only ever intended for the staff if there was a shortfall. Enough of wasting the employees entitlements, pay us out & let us get on with life!
I think Fox & Lew are a bit more subtle than Lang & DJ, but, ultimately, they want the same things only. Oh well, forget Ansett folks, it will disappear as an Australian symbol like Speedo's, Vegemite etc, etc, etc.
[ 17 November 2001: Message edited by: Buster Hyman ]
The money was to guarantee the entitlements ONLY. This was stated from day one. The unions & now Fox/Lew think they can grab it to fund the airline. It was only ever intended for the staff if there was a shortfall. Enough of wasting the employees entitlements, pay us out & let us get on with life!
I think Fox & Lew are a bit more subtle than Lang & DJ, but, ultimately, they want the same things only. Oh well, forget Ansett folks, it will disappear as an Australian symbol like Speedo's, Vegemite etc, etc, etc.
[ 17 November 2001: Message edited by: Buster Hyman ]
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Kaptin M,
As I understand it...
The Government say that the $195M is/was to be a loan to the administrators to pay the staff entitlements. This money would be paid back to the Government either from money eventually recouped from Air NZ, or from the sale of some of the assets.
The Fox/Lew bid though want this to be given to the administrators, in other words NOT a loan.
They are/were also insisting on certain other concessions from the Government to save Ansett.
However this is why this new idea from Lang/Virgin must appeal to the Government, not only are they NOT seeking any concessions from the Government, but Lang Corp are going to put money in to Virgin...
Don't know if that helps, or maybe now you are as confused as everyone else...
Best regards,
"lame"
As I understand it...
The Government say that the $195M is/was to be a loan to the administrators to pay the staff entitlements. This money would be paid back to the Government either from money eventually recouped from Air NZ, or from the sale of some of the assets.
The Fox/Lew bid though want this to be given to the administrators, in other words NOT a loan.
They are/were also insisting on certain other concessions from the Government to save Ansett.
However this is why this new idea from Lang/Virgin must appeal to the Government, not only are they NOT seeking any concessions from the Government, but Lang Corp are going to put money in to Virgin...
Don't know if that helps, or maybe now you are as confused as everyone else...
Best regards,
"lame"
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From Mark Mentha's own words, the $195MM has no bearing on the Fox-Lew bid. If the government lives up to their promise, those employees who are not part of the new airline will receive their entire entitlements within approximately 6 months. If they renege on the promise, the entitlements above the government minimum will be unsecured claims and some percentage will be paid approximately 2-3 years from now. Some compassionate lot the Howard government is! They will also be able to pocket the ticket tax for all that time without any outgoings. They are putting every roadblock in the path of the administrators because they had made a deal with Qantas to have no competiton again from a full-service airline. They would therefore spend all their efforts in competing and putting Virgin out of business. All of OZ would be theirs. As Max Moore-Melton said, "they don't give a **** about Ansett".
Evertonian
Interesting watching the many faces of John Anderson. Supporting AN, supporting QF to the Kiwi's, hoping AN gets up, saying he won't commit tax dollars to AN, telling unions to accept the QF job cuts 'coz we need to protect QF.... I'm totally confused
As the minister for QF, of course he wants to protect them, but please don't patronise the AN staff. The election's over, you can tell us what you really think now.
As the minister for QF, of course he wants to protect them, but please don't patronise the AN staff. The election's over, you can tell us what you really think now.
short flights long nights
mmmm,as I thought, election finished, now this thing will get really messy, until I think (as gaunty predicted last week), the whole mess will be quietly liquadated. We will see.
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"Sunday Telegraph"
Fels to curb Qantas
By national political writer SIMON KEARNEY
18nov01
CORPORATE watchdog Professor Allan Fels could be given new powers to restrict the near-monopoly of Qantas in the domestic travel market.
The Federal Government is considering a request from Virgin Blue to pull back Qantas's dominant position by allowing Virgin to take over part of Ansett.
Virgin Blue has proposed a partial take-over with controversial former Patrick Stevedoring boss, Chris Corrigan.
They have told Transport Minister John Anderson they want to bid for Ansett's terminals and freight business.
Virgin's head of commercial operations, David Huttner, said Qantas was using its monopoly power to squeeze out smaller players.
"Everyone knows these guys are playing dirty," he told The Sunday Telegraph. "Professor Fels has not been given the teeth to deal with them and Mr Anderson was open to the suggestion of doing that."
A spokesman for Mr Anderson said the Government was looking at new powers for the Australian Competition and Consumer Commission (ACCC) that Prof Fels heads.
Financial Regulation Minister Joe Hockey's office confirmed the new powers would be addressed as part of the review of the Trade Practices Act, which the Coalition promised during the election campaign.
Qantas last week argued that changes to the Trade Practices Act would "severely handicap Qantas just for being efficient".
Mr Huttner said Virgin's meeting with Mr Anderson was to inform him of its continued interest in taking over part of Ansett and to ensure that taxpayers' money was not used unfairly to prop up Ansett Mk II.
Ansett's administrators are hoping that a $195 million loan from the Federal Government can be converted into a grant to pay creditors.
The other major bidders, Lindsay Fox and Solomon Lew, say their bid to get a leaner Ansett flying on major routes with new planes is no longer reliant on the $195 million from taxpayers.
"If Mr Lew and Mr Fox can put together a deal that does not rely on Government breaks, then we wish them well," Mr Huttner said.
Virgin wants to buy the terminal space because they believe Ansett is charging them too much to use facilities at Australian airports.
Mr Huttner said Ansett's charges rose from $300-a-flight for terminal space in Launceston to more than $1000-a-flight within a week.
Mr Corrigan's Lang Corporation is interested in taking over Ansett's freight business. An ACTU spokesman said Mr Corrigan's background in the waterfront dispute was no barrier to them negotiating with him on Ansett.
The spokesman said the union movement had had successful negotiations with Lang Corp since the bitter waterfront dispute ended.
Ansett creditors endorsed the Fox-Lew bid on Thursday at a meeting which also heard Lang Corp hoped to acquire Ansett terminals and infrastructure in an equity deal with Virgin that would lead to the expansion of Virgin and the employment of about 2000 Ansett staff.
However, a full creditors' meeting is yet to decide the airline's fate.
On Friday Mr Anderson indicated he was not prepared to commit large amounts of taxpayers' money to get Ansett back off the ground.
Fels to curb Qantas
By national political writer SIMON KEARNEY
18nov01
CORPORATE watchdog Professor Allan Fels could be given new powers to restrict the near-monopoly of Qantas in the domestic travel market.
The Federal Government is considering a request from Virgin Blue to pull back Qantas's dominant position by allowing Virgin to take over part of Ansett.
Virgin Blue has proposed a partial take-over with controversial former Patrick Stevedoring boss, Chris Corrigan.
They have told Transport Minister John Anderson they want to bid for Ansett's terminals and freight business.
Virgin's head of commercial operations, David Huttner, said Qantas was using its monopoly power to squeeze out smaller players.
"Everyone knows these guys are playing dirty," he told The Sunday Telegraph. "Professor Fels has not been given the teeth to deal with them and Mr Anderson was open to the suggestion of doing that."
A spokesman for Mr Anderson said the Government was looking at new powers for the Australian Competition and Consumer Commission (ACCC) that Prof Fels heads.
Financial Regulation Minister Joe Hockey's office confirmed the new powers would be addressed as part of the review of the Trade Practices Act, which the Coalition promised during the election campaign.
Qantas last week argued that changes to the Trade Practices Act would "severely handicap Qantas just for being efficient".
Mr Huttner said Virgin's meeting with Mr Anderson was to inform him of its continued interest in taking over part of Ansett and to ensure that taxpayers' money was not used unfairly to prop up Ansett Mk II.
Ansett's administrators are hoping that a $195 million loan from the Federal Government can be converted into a grant to pay creditors.
The other major bidders, Lindsay Fox and Solomon Lew, say their bid to get a leaner Ansett flying on major routes with new planes is no longer reliant on the $195 million from taxpayers.
"If Mr Lew and Mr Fox can put together a deal that does not rely on Government breaks, then we wish them well," Mr Huttner said.
Virgin wants to buy the terminal space because they believe Ansett is charging them too much to use facilities at Australian airports.
Mr Huttner said Ansett's charges rose from $300-a-flight for terminal space in Launceston to more than $1000-a-flight within a week.
Mr Corrigan's Lang Corporation is interested in taking over Ansett's freight business. An ACTU spokesman said Mr Corrigan's background in the waterfront dispute was no barrier to them negotiating with him on Ansett.
The spokesman said the union movement had had successful negotiations with Lang Corp since the bitter waterfront dispute ended.
Ansett creditors endorsed the Fox-Lew bid on Thursday at a meeting which also heard Lang Corp hoped to acquire Ansett terminals and infrastructure in an equity deal with Virgin that would lead to the expansion of Virgin and the employment of about 2000 Ansett staff.
However, a full creditors' meeting is yet to decide the airline's fate.
On Friday Mr Anderson indicated he was not prepared to commit large amounts of taxpayers' money to get Ansett back off the ground.
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Another angle on the same story, from Singapore.........
(QUOTE)
Virgin Blue may take 2,000 Ansett staff
SYDNEY - Lang Corp chief executive officer Chris Corrigan and Virgin Blue head Brett Godfrey on Friday met Australian Transport Minister John Anderson to discuss a proposal to buy assets of failed airline Ansett Holdings.
The proposal includes Lang, the nation's largest stevedoring company, buying Ansett's terminals and facilities. Virgin Blue, owned by Mr Richard Branson, would provide some equity, helping the discount carrier expand its business and possibly employ about 2,000 Ansett staff.
'All those are possibilities, but I won't commit to say we're going to hire 2,000 people,' said Mr David Huttner, a spokesman at Virgin Blue. 'They're only ideas; there's no official deal on the table.'
A Lang-Virgin proposal will rival an existing A$1.1 billion (S$1.05 billion) bid by businessmen Lindsay Fox and Solomon Lew for Ansett's name, headquarters, terminals and other assets.
Ansett's administrator, accounting firm Andersen, is trying to sell the carrier's assets to help repay the airline's debt of A$2 billion.
'We are continuing discussions that we've had with Virgin and others on a range of opportunities within the airline industry,' said Ms Felicity Moffatt, a Lang spokesman.
Ansett controlled about 42 per cent of Australia's domestic-aviation industry before it was placed in administration two months ago after running out of cash.
The airline's creditors are urging the government to support the bid by Mr Fox and Mr Lew to buy Ansett's assets by covering workers' severance costs.
Mr Fox heads trucking company Linfox Pty and owns Avalon Airport Group in Victoria. Mr Lew was previously chairman of Coles Myer, Australia's largest retailer.
Transport Minister Anderson, who is also Deputy Prime Minister, on Friday said time was running out to rescue Ansett. Anderson's spokesman Paul Chamberlin said the talks with Lang and Virgin were 'all part of the process. He's met with all the major players.'
ANstaff, a group representing Ansett staff, withdrew a bid for some of Ansett's assets on Thursday.
It's now supporting Mr Fox and Mr Lew.--Bloomberg News
(QUOTE)
Virgin Blue may take 2,000 Ansett staff
SYDNEY - Lang Corp chief executive officer Chris Corrigan and Virgin Blue head Brett Godfrey on Friday met Australian Transport Minister John Anderson to discuss a proposal to buy assets of failed airline Ansett Holdings.
The proposal includes Lang, the nation's largest stevedoring company, buying Ansett's terminals and facilities. Virgin Blue, owned by Mr Richard Branson, would provide some equity, helping the discount carrier expand its business and possibly employ about 2,000 Ansett staff.
'All those are possibilities, but I won't commit to say we're going to hire 2,000 people,' said Mr David Huttner, a spokesman at Virgin Blue. 'They're only ideas; there's no official deal on the table.'
A Lang-Virgin proposal will rival an existing A$1.1 billion (S$1.05 billion) bid by businessmen Lindsay Fox and Solomon Lew for Ansett's name, headquarters, terminals and other assets.
Ansett's administrator, accounting firm Andersen, is trying to sell the carrier's assets to help repay the airline's debt of A$2 billion.
'We are continuing discussions that we've had with Virgin and others on a range of opportunities within the airline industry,' said Ms Felicity Moffatt, a Lang spokesman.
Ansett controlled about 42 per cent of Australia's domestic-aviation industry before it was placed in administration two months ago after running out of cash.
The airline's creditors are urging the government to support the bid by Mr Fox and Mr Lew to buy Ansett's assets by covering workers' severance costs.
Mr Fox heads trucking company Linfox Pty and owns Avalon Airport Group in Victoria. Mr Lew was previously chairman of Coles Myer, Australia's largest retailer.
Transport Minister Anderson, who is also Deputy Prime Minister, on Friday said time was running out to rescue Ansett. Anderson's spokesman Paul Chamberlin said the talks with Lang and Virgin were 'all part of the process. He's met with all the major players.'
ANstaff, a group representing Ansett staff, withdrew a bid for some of Ansett's assets on Thursday.
It's now supporting Mr Fox and Mr Lew.--Bloomberg News
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And now this, Virgin Blue to become True Blue.....
The new Australian Investor/Owner, wouldn't be Lang Corp I suppose...
(QUOTE)
*Talks of an Australian owned Virgin Blue*
Virgin Blue has signalled it may divest its majority stakehold in the
airline, enabling it to become Australian owned.
The move comes two months after Richard Branson tore up a $250 million
takeover cheque from Air New Zealand.
Virgin Blue's rapid ascent to Australia's second carrier and positive
earnings two years ahead of schedule has sparked interest in the
airline's future.
Chief executive Brett Godfrey told Channel Nine the company may take
some profits to invest in overseas ventures.
He says a portion of Virgin Blue could be sold off ahead of a public
float next year.
"We do need some cash for some of these other opportunities and which is
why we are also looking for a cornerstone investor who might bring
something more to the table than just their cash," he said.
Mr Godfrey also says Virgin Blue could be 51 per cent Australian owned
by the end of next year.
"That would give us pretty much immediate access to the Tasman which is
something we've said we want to get to."
But the airline is not ruling out a sell-off before then if a suitable
deal is on offer.
The new Australian Investor/Owner, wouldn't be Lang Corp I suppose...
(QUOTE)
*Talks of an Australian owned Virgin Blue*
Virgin Blue has signalled it may divest its majority stakehold in the
airline, enabling it to become Australian owned.
The move comes two months after Richard Branson tore up a $250 million
takeover cheque from Air New Zealand.
Virgin Blue's rapid ascent to Australia's second carrier and positive
earnings two years ahead of schedule has sparked interest in the
airline's future.
Chief executive Brett Godfrey told Channel Nine the company may take
some profits to invest in overseas ventures.
He says a portion of Virgin Blue could be sold off ahead of a public
float next year.
"We do need some cash for some of these other opportunities and which is
why we are also looking for a cornerstone investor who might bring
something more to the table than just their cash," he said.
Mr Godfrey also says Virgin Blue could be 51 per cent Australian owned
by the end of next year.
"That would give us pretty much immediate access to the Tasman which is
something we've said we want to get to."
But the airline is not ruling out a sell-off before then if a suitable
deal is on offer.
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Virgin wants to buy the terminal space because they believe Ansett is charging them too much to use facilities at Australian airports.
Mr Huttner said Ansett's charges rose from $300-a-flight for terminal space in Launceston to more than $1000-a-flight within a week.
I would assume that this is the administrators charging DJ so as good accountants they are squeezing them. What other terminals do DJs lease off AN ? None that I am aware of. Maybe Darwin or Perth? As for who determines the onsale of ANs assets when I last looked at Volume 1 of the corporations law it is the Administrators dependent on the approval of the creditors. So the government have no say at all and I would expect that Fox and Lew will buy the terminals and even if AN2 doesn't work they will be able to gouge any other airlines using the Terminals. As for the government they have a lovely double dip tax going so why give that up. I think that Kaptin M is right, pay out the staff and if they want to buy a share in the new airline let them ( not a good investment though I would expect). Not a good time to be doing your commercial licence for all those wannabes........
Mr Huttner said Ansett's charges rose from $300-a-flight for terminal space in Launceston to more than $1000-a-flight within a week.
I would assume that this is the administrators charging DJ so as good accountants they are squeezing them. What other terminals do DJs lease off AN ? None that I am aware of. Maybe Darwin or Perth? As for who determines the onsale of ANs assets when I last looked at Volume 1 of the corporations law it is the Administrators dependent on the approval of the creditors. So the government have no say at all and I would expect that Fox and Lew will buy the terminals and even if AN2 doesn't work they will be able to gouge any other airlines using the Terminals. As for the government they have a lovely double dip tax going so why give that up. I think that Kaptin M is right, pay out the staff and if they want to buy a share in the new airline let them ( not a good investment though I would expect). Not a good time to be doing your commercial licence for all those wannabes........
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Dunno about you other guys in AN but I am starting to feel like a political football. Is there ever going to be an end to this? Please, please, please if no one has any intention of seeing Ansett fly again, would someone let the staff know.....like NOW. Some of us want to get on with our lives here.
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A question, if AN is not wound up, ie; it is taken over as a going concern by Fox/Lew, are AN workers entitled to leave, super etc etc, if they were in fact never dismissed ? And if they are dismissed and paid their entitlements in full I guess this means they can be re employed by the new owner under whatever conditions the new owner offers ?
On the QF monopoly thing I can't help feel a little sorry for QF, they have increased the capacity to try and fill the void left by AN and they are accused of trying to keep other airlines out, all in sundry whinge about no cheap seats left so they release a bunch of cheap seats and now they are predatory. I guess they could keep everybody happy if they just offer all their seats for free and donate 4 billion to AN
On the QF monopoly thing I can't help feel a little sorry for QF, they have increased the capacity to try and fill the void left by AN and they are accused of trying to keep other airlines out, all in sundry whinge about no cheap seats left so they release a bunch of cheap seats and now they are predatory. I guess they could keep everybody happy if they just offer all their seats for free and donate 4 billion to AN
Evertonian
Stupid.
AN as we knew it is gone. Therefore, staff are entitled to opt for redundancy if they are offered a position that has differed from their original award entitlements. The new owners will want all long term staff to go as they are the greatest liabilities. If they go now, the new owners can say; "Sorry, not enough in the kitty, but here's 40 cents in the dollar for you." Then they get rid of big liabilities and only have staff who've been there a couple of years, & hence, cheaper.
As with QF, no they can't do much right. Its basically catch 22 for them. But I think it would be interesting to see the exact role they played in this fiasco...
AN as we knew it is gone. Therefore, staff are entitled to opt for redundancy if they are offered a position that has differed from their original award entitlements. The new owners will want all long term staff to go as they are the greatest liabilities. If they go now, the new owners can say; "Sorry, not enough in the kitty, but here's 40 cents in the dollar for you." Then they get rid of big liabilities and only have staff who've been there a couple of years, & hence, cheaper.
As with QF, no they can't do much right. Its basically catch 22 for them. But I think it would be interesting to see the exact role they played in this fiasco...
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News Article from this mornings news, the last 2 paragraphs are spot on!!!!
Fox and Lew slam Qantas tactics
By Richard Gluyas
19nov01
THE Fox-Lew syndicate bidding for Ansett has turned up the competitive heat on arch-rival Qantas, accusing the airline of ruthless commercial behaviour and making threats contrary to the national interest.
Trucking magnate Lindsay Fox, pressing his Tesna syndicate's argument for increased powers for the Australian Competition and Consumer Commission, likened Qantas's current position of market dominance to that of Telstra.
He also attacked Qantas's plans to sack 2000 workers when it was planning a massive fleet upgrade, as well as chief executive Geoff Dixon's threats to relocate large parts of the airline's activities offshore if unions agreed to a preferential deal on wages and conditions with Tesna.
"I don't think people realise when they talk about Qantas being an Australian airline that it's actually 58 per cent owned offshore," Mr Fox said in an interview with The Australian, contrasting the airline with Tesna's 100 per cent local ownership. "They talk in terms of picking up their bat and ball and going elsewhere with their service and maintenance if they don't get what they want.
"Statements like that are really quite ludicrous if they have Australia's interests at heart."
Mr Fox defended Tesna's push for changes to competition law to monitor Qantas's commercial behaviour, including a "cease and desist" power for the ACCC and judging anti-competitive action by its effect and not its purpose.
He said Telstra faced similar curbs on its market behaviour, so there was a clear precedent.
The proposed changes, he said, were an item of "discussion" with the federal Government and not a condition precedent for the Tesna bid.
Responding to Qantas chairman Margaret Jackson's statement that the proposal was draconian and contrary to the national interest, Mr Fox said: "It's not up to Margaret Jackson. It's up to the authorities."
Tesna also rejected the notion it was seeking a raft of special concessions and subsidies, saying most of what it wanted amounted to "soft-dollar" commitments worth significantly less than the $600 million mentioned previously.
Mr Fox accused both Qantas and Virgin Blue of hypocrisy when it came to government assistance. He said Virgin Blue had received "something like $100 million" in state and federal government subsidies over the past year. The Commonwealth had also forgiven Qantas a $400 million loan before it was privatised and had stepped in to provide the airline with insurance cover after the September 11 terrorist attacks.
Mr Lew said Tesna's proposed fleet of Airbus aircraft would set a new benchmark in passenger facilities and comfort, with internet access to allow online shopping, as well as telephone and television.
When it was pointed out that Qantas was promising much the same with its fleet upgrade, Mr Fox said: "We intend to lead. We're great believers that if you're going to be a sled dog, be the lead dog because, for all those following, the view isn't too good and the smell is horrendous."
When asked if the airline would be adequately capitalised, Mr Fox laughed and his business partner said: "You're talking to Lindsay Fox and Solomon Lew."
Fox and Lew slam Qantas tactics
By Richard Gluyas
19nov01
THE Fox-Lew syndicate bidding for Ansett has turned up the competitive heat on arch-rival Qantas, accusing the airline of ruthless commercial behaviour and making threats contrary to the national interest.
Trucking magnate Lindsay Fox, pressing his Tesna syndicate's argument for increased powers for the Australian Competition and Consumer Commission, likened Qantas's current position of market dominance to that of Telstra.
He also attacked Qantas's plans to sack 2000 workers when it was planning a massive fleet upgrade, as well as chief executive Geoff Dixon's threats to relocate large parts of the airline's activities offshore if unions agreed to a preferential deal on wages and conditions with Tesna.
"I don't think people realise when they talk about Qantas being an Australian airline that it's actually 58 per cent owned offshore," Mr Fox said in an interview with The Australian, contrasting the airline with Tesna's 100 per cent local ownership. "They talk in terms of picking up their bat and ball and going elsewhere with their service and maintenance if they don't get what they want.
"Statements like that are really quite ludicrous if they have Australia's interests at heart."
Mr Fox defended Tesna's push for changes to competition law to monitor Qantas's commercial behaviour, including a "cease and desist" power for the ACCC and judging anti-competitive action by its effect and not its purpose.
He said Telstra faced similar curbs on its market behaviour, so there was a clear precedent.
The proposed changes, he said, were an item of "discussion" with the federal Government and not a condition precedent for the Tesna bid.
Responding to Qantas chairman Margaret Jackson's statement that the proposal was draconian and contrary to the national interest, Mr Fox said: "It's not up to Margaret Jackson. It's up to the authorities."
Tesna also rejected the notion it was seeking a raft of special concessions and subsidies, saying most of what it wanted amounted to "soft-dollar" commitments worth significantly less than the $600 million mentioned previously.
Mr Fox accused both Qantas and Virgin Blue of hypocrisy when it came to government assistance. He said Virgin Blue had received "something like $100 million" in state and federal government subsidies over the past year. The Commonwealth had also forgiven Qantas a $400 million loan before it was privatised and had stepped in to provide the airline with insurance cover after the September 11 terrorist attacks.
Mr Lew said Tesna's proposed fleet of Airbus aircraft would set a new benchmark in passenger facilities and comfort, with internet access to allow online shopping, as well as telephone and television.
When it was pointed out that Qantas was promising much the same with its fleet upgrade, Mr Fox said: "We intend to lead. We're great believers that if you're going to be a sled dog, be the lead dog because, for all those following, the view isn't too good and the smell is horrendous."
When asked if the airline would be adequately capitalised, Mr Fox laughed and his business partner said: "You're talking to Lindsay Fox and Solomon Lew."