News: SIA plays it cool on Ansett
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News: SIA plays it cool on Ansett
SIA plays it cool on Ansett
By GEOFFREY THOMAS
PERTH
Monday 22 October 2001
Singapore Airlines is cool on playing any Ansett card, as cold water is poured on the Lindsay Fox-Solomon Lew bid for Ansett Mark II, which was unveiled on Friday.
Executives from the world's richest airline returned to Singapore on Saturday to brief the airline's board on the state of Ansett Mark II, but indications are they are wary of investment at this point and are not keen on either the Fox-Lew or the Ansett staff bid, ANstaff, for Ansett Mark II.
Singapore Airlines (SIA) had a team of 14 executives in Melbourne last week to assess Ansett Mark II at the invitation of the airline administrators, with a view to a management contract and a possible equity link-up.
And as Singapore Airlines ponders its next move, Peter Harbison, from the Centre for Asia Pacific Aviation in Sydney, issued a blunt warning to Mr Fox and Mr Lew that they were entering red-ink clouds if they took on Virgin Blue with Ansett Mark II.
"They're going to have a very hard time competing against a very aggressive, low-cost Virgin and a very effective, across-the-board competitor in Qantas," he said.
"I would look very much more to an airline which is full service, rather than just a low-cost budget operation."
The Fox-Lew syndicate's plans for Ansett Mark II, a low-cost operation using 29 A320s, does not involve the staff or the Ansett frequent-flyer program that analysts say are key elements to Mark II's success.
And Mr Harbison's view is shared by the other two major bidders, ANstaff and Singapore Airlines.
ANStaff is looking to raise $500 million. The bid includes premium service and the honoring of Ansett's frequent-flyer program points.
By GEOFFREY THOMAS
PERTH
Monday 22 October 2001
Singapore Airlines is cool on playing any Ansett card, as cold water is poured on the Lindsay Fox-Solomon Lew bid for Ansett Mark II, which was unveiled on Friday.
Executives from the world's richest airline returned to Singapore on Saturday to brief the airline's board on the state of Ansett Mark II, but indications are they are wary of investment at this point and are not keen on either the Fox-Lew or the Ansett staff bid, ANstaff, for Ansett Mark II.
Singapore Airlines (SIA) had a team of 14 executives in Melbourne last week to assess Ansett Mark II at the invitation of the airline administrators, with a view to a management contract and a possible equity link-up.
And as Singapore Airlines ponders its next move, Peter Harbison, from the Centre for Asia Pacific Aviation in Sydney, issued a blunt warning to Mr Fox and Mr Lew that they were entering red-ink clouds if they took on Virgin Blue with Ansett Mark II.
"They're going to have a very hard time competing against a very aggressive, low-cost Virgin and a very effective, across-the-board competitor in Qantas," he said.
"I would look very much more to an airline which is full service, rather than just a low-cost budget operation."
The Fox-Lew syndicate's plans for Ansett Mark II, a low-cost operation using 29 A320s, does not involve the staff or the Ansett frequent-flyer program that analysts say are key elements to Mark II's success.
And Mr Harbison's view is shared by the other two major bidders, ANstaff and Singapore Airlines.
ANStaff is looking to raise $500 million. The bid includes premium service and the honoring of Ansett's frequent-flyer program points.
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SIA bows out from Ansett bid
By IAN ROYALL, aviation reporter
22oct01
SINGAPORE Airlines has walked away from pumping any money into a relaunched Ansett.
Instead, the Singapore carrier is finalising a business plan for the Ansett administrators, Mark Mentha and Mark Korda, of accounting firm Andersen.
The agreement, expected to be signed in the next few days, is for SIA to help manage Ansett Mark II while it is under administration and until a buyer is found.
"We are not a bidder," SIA spokesman Stephen Forshaw said yesterday.
"It's been said that Singapore Airlines is one of three bodies lining up to buy Ansett - that is not the case."
A team of 14 SIA managers who were sent to Australia to review the airline's prospects left Ansett's Swanston St headquarters late last week.
Until now, SIA had not ruled out taking an equity stake in the resurrected airline.
But its interest cooled amid the continuing uncertainty in the global aviation market.
And as a stakeholder in Air New Zealand, SIA estimated it lost almost $70 million because of the Ansett collapse.
SIA's withdrawal clears the way for the two leading bids - the ANstaff employee offer and the $2.5 billion proposal led by businessmen Lindsay Fox and Solomon Lew.
ANstaff representatives yesterday met Transport Minister John Anderson, who said he was impressed with the group's ideas on how to save the carrier.
"I found it a very productive meeting - somewhat sobering, some of the things I've heard about what's been happening and what led to the demise of so many jobs," Mr Anderson said.
ANstaff adviser Michael Jones said the syndicate's business plan was 300 per cent more substantial than the Fox-Lew bid.
Mr Jones said he was willing to talk to the two businessmen to find a solution for Ansett. "This is not a competition," he said.
Both consortia are expected to place formal bids with the Ansett administrators in the next week or two. The administrators are believed to be considering re-opening Ansett's Golden Wing lounges in a bid to attract more business travellers.
With passenger numbers lower than hoped for on the busy Sydney-Melbourne route, the administrators are keen to raise more revenue from the corporate sector.
It is also believed a deal is being finalised to enable travel agents to take Ansett flight bookings again.
Since Ansett II took off on September 29, bookings have only been possible by phone or the Internet.
The moves come as Qantas prepares to seek concessions from its staff, with chief executive Geoff Dixon meeting up to 11 of the airline's unions in Sydney today.
Mr Dixon has said a pay freeze would be discussed, but Qantas chair Margaret Jackson yesterday hinted broader conditions might also be under review.
Qantas had to match the rates of its Australian competitors, Ms Jackson told Channel Nine's Business Sunday program.
ACTU secretary Greg Combet said he was unconvinced the pressure on pay was needed at all.
Mr Combet said the airline was talking about a wage freeze while embarking on a spending spree.
By IAN ROYALL, aviation reporter
22oct01
SINGAPORE Airlines has walked away from pumping any money into a relaunched Ansett.
Instead, the Singapore carrier is finalising a business plan for the Ansett administrators, Mark Mentha and Mark Korda, of accounting firm Andersen.
The agreement, expected to be signed in the next few days, is for SIA to help manage Ansett Mark II while it is under administration and until a buyer is found.
"We are not a bidder," SIA spokesman Stephen Forshaw said yesterday.
"It's been said that Singapore Airlines is one of three bodies lining up to buy Ansett - that is not the case."
A team of 14 SIA managers who were sent to Australia to review the airline's prospects left Ansett's Swanston St headquarters late last week.
Until now, SIA had not ruled out taking an equity stake in the resurrected airline.
But its interest cooled amid the continuing uncertainty in the global aviation market.
And as a stakeholder in Air New Zealand, SIA estimated it lost almost $70 million because of the Ansett collapse.
SIA's withdrawal clears the way for the two leading bids - the ANstaff employee offer and the $2.5 billion proposal led by businessmen Lindsay Fox and Solomon Lew.
ANstaff representatives yesterday met Transport Minister John Anderson, who said he was impressed with the group's ideas on how to save the carrier.
"I found it a very productive meeting - somewhat sobering, some of the things I've heard about what's been happening and what led to the demise of so many jobs," Mr Anderson said.
ANstaff adviser Michael Jones said the syndicate's business plan was 300 per cent more substantial than the Fox-Lew bid.
Mr Jones said he was willing to talk to the two businessmen to find a solution for Ansett. "This is not a competition," he said.
Both consortia are expected to place formal bids with the Ansett administrators in the next week or two. The administrators are believed to be considering re-opening Ansett's Golden Wing lounges in a bid to attract more business travellers.
With passenger numbers lower than hoped for on the busy Sydney-Melbourne route, the administrators are keen to raise more revenue from the corporate sector.
It is also believed a deal is being finalised to enable travel agents to take Ansett flight bookings again.
Since Ansett II took off on September 29, bookings have only been possible by phone or the Internet.
The moves come as Qantas prepares to seek concessions from its staff, with chief executive Geoff Dixon meeting up to 11 of the airline's unions in Sydney today.
Mr Dixon has said a pay freeze would be discussed, but Qantas chair Margaret Jackson yesterday hinted broader conditions might also be under review.
Qantas had to match the rates of its Australian competitors, Ms Jackson told Channel Nine's Business Sunday program.
ACTU secretary Greg Combet said he was unconvinced the pressure on pay was needed at all.
Mr Combet said the airline was talking about a wage freeze while embarking on a spending spree.
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I have said all along that SIA is NOT interested in Ansett and nothing has changed.
This sudden interest in "running" the show is either an attempt to keep one of it's Star Alliance partners alive (knowing SQ they would have some vested interest in doing this) or they are having a sticky beak to see what the financial situation of the ex - airline was so they can go back to Singapore and tell everyone what clever puppies they were not to buy in.
This sudden interest in "running" the show is either an attempt to keep one of it's Star Alliance partners alive (knowing SQ they would have some vested interest in doing this) or they are having a sticky beak to see what the financial situation of the ex - airline was so they can go back to Singapore and tell everyone what clever puppies they were not to buy in.
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Did anybody else notice the irony of the bidders for a new Ansett.
A trucking magnate, a bussiness man, and in the front row, Kelty, and the rest of the Labour cohorts.
Just gave me a little giggle!!
A trucking magnate, a bussiness man, and in the front row, Kelty, and the rest of the Labour cohorts.
Just gave me a little giggle!!
