Ansett Air NZ Some thoughts and hopes

[somervil]

The history of this issue goes back a long way. In the days of the two airline policy, Ansett and Qantas had the skies to themselves. Air NZ wanted to start up their own Value Based Airline (VBA) but were told by the Australian Govt that, despite the fact that there was an open skies policy between the two countries, this would not be allowed and they would have to buy into Ansett. A little while later, Impulse and then Virgin come on the scene with the encouragement and support of the NSW and Qld governments respectively. The balance that existed is now out of kilter. For Qantas and Ansett to survive, they had to change. Qantas bought Impulse to get itself a VBA. Air NZ tried to buy Virgin to retain the balance but, for a number of reasons, were unsuccessful. Qantas now had the field covered. Ansett now needed to change the way it did things because its cost structure could not be supported by its revenue which was now being attacked by the VBA presence. For various reasons it did not change (and the blame for this is not with a single entity) and we now find ourselves with the present unenviable scenario.

I have heard some information over the last 24 hours that would indicate that the Ansett staff entitlements have a very good chance of being paid out and I am very pleased to hear that.

What of the future? I, as a kiwi, certainly hope that Ansett is resurected however, to achieve this, there will just have to be huge changes to the cost structures. That means that staff conditions will have to change but at least there would still be jobs. If this was to happen, the alliance between the two companies is still the best strategic option for both.

Keep cool heads, think through the issues with intelligence. I want to see Ansett flying again. I want to see the partnership re-ignited. This may be a forlorn dream, I hope not.

God Bless you Woomera.