Wirraway

A couple of guys confirm the booking system
is working ok on the Ansett site, my computer
won't work on it.

straightenup

Mir3 you is the man!

KaptinM you is NOT the man, you need help baby and quick your evil twisted mind is goin to bit you in the ass.
I been reading them jepp thingies, a got your number, you one of those old smokin froggy planes that could'nt shoot itself the in mirror.

Amos

Now listen up here you all and listen up real good to our friend " straighten up "...
I mean, man, does he tell it like it is or does he tell it... well, I think you get my drift! Man!... what a fruit loop!!??
It will bit you on de bum man!
Hey EEcam...looks like we get to do some aviating together!

The Flying Lad

Whiskery,

I don't know whether Newsradio in TAS is right, because I've just done a quick check for BNE from 6AM until the last flight out to PER at 2040, and there haven't been any 'Cancelled's.

I hope they pull through. Any hope of that staff buy back suggested over a year ago coming back up, or is it noone dares to touch AN now?

Cheers,

Justin

Wirraway

ABC Net:

Deputy PM in crisis talks over Ansett's future

The acting Prime Minister, John Anderson, is in crisis talks over the future of Ansett airlines.

Mr Anderson has been talking to major airlines and is trying to contact the New Zealand leader, Helen Clark tonight.


MULTIMEDIA




There is mounting pressure on the Federal Government to guarantee the survival of Ansett. Jane Calvert reports.


HELP




Ansett - which is owned by air New Zealand - is losing more than $1 million a day.

The Air New Zealand board is deciding what to do about the problem.

Singapore Airlines which put in a bid to buy into Air New Zealand and provided much needed capital is less keen since the extent of the Ansett problem was revealed.

In response to the crisis, Mr Anderson flew into Canberra this afternoon - and has cancelled engagements for tomorrow.

A team of officials has worked all weekend on contingency plans - including strategies to handle the fallout if Ansett collapses.

Mr Anderson says the Australian Government is extremely concerned about Ansett's staff, the travelling public and the regional communities which depend on the airline.

Mr Anderson will not reveal what specific issues he wants to raise with the New Zealand leader.

NZ Govt

The New Zealand Government is still holding out on a bid by a rival airline to buy more of Air New Zealand and its stricken subsidiary, Ansett Airlines.

The board of Air New Zealand and the New Zealand Government have spent the weekend preparing a possible rescue package for Air New Zealand and its subsidiary Ansett.

The Australian Treasurer, Peter Costello, has been told the New Zealand cabinet has not yet agreed to an offer that might still save Ansett.

Mr Costello briefed reporters on the outcome of talks overnight with the New Zealand Finance Minister Doctor Michael Cullen.

He said the New Zealand cabinet is still considering an application from Singapore Airlines to lift its stake in Air New Zealand, even though the airline mid-week announced it was withdrawing the bid because the price was now too high.

Doctor Cullen remains hopeful a rescue package can be in place in the next few days.

Meanwhile, Mr Costello has expressed support for the airline workers.

"This is not the problem of the employees, this is as a result of management and the directors".


Clear path

Mr Costello has paved the way for a possible foreign investor to rescue the financially troubled Ansett Airlines.

Mr Costello says if a foreign investor is interested in becoming involved, a foreign investment review will not be necessary in Ansett's case.

"If there were another foreign company that wanted to take a position in Ansett then it would pass from one foreign owner to another foreign owner. I don't see that as a major problem," he said.

"Whether there is a person that is interested in doing that, well that's a matter for commercial judgement."


Union

The Australian Services Union has embarked on a campaign urging the Government to do more to ensure the future of Ansett Airlines.

The Union, which represents 5,500 thousand Ansett employees, has launched a fax and email campaign which calls on the Government to take a more direct role in securing the company's future.

The Union's Assistant Secretary, Linda White, says it's time the Government stepped in to help find the investors to keep Ansett afloat.

"This year we've seen four airlines hit the wall because of this government's aviation policy, we don't want to see a fifth," she said.

"We want the Australian Government to do whatever it takes to ensure that Ansett survives.

Steve, a 25-year employee with Ansett, says the ongoing uncertainty is taking its toll on staff.

"It's very distressing, it's very difficult for people to get up at three o'clock in the morning and come to an airport and be confronted with the possibility that you may not be there the next day."

Singapore Airlines

Virgin Blue says Singapore Airlines is capable of refinancing Ansett through its capital reserves.

But Virgin Blue has told Channel Nine that it believes Singapore Airlines has been surprised by the true state of Ansett's finances.

Chief executive officer Brett Godfrey says Virgin Blue is interested in acquiring a 25 per cent stake in Air New Zealand through a share swap and a possible cash offer.

But the move would depend on Singapore Airlines selling its stake in Air New Zealand.

Mr Godfrey says Singapore Airlines holds the cards in terms of saving Ansett Airlines.

"It will take some willing minds to do so and I think the willing minds are Singapore," he said.

"Singapore does have a lot of cash in reserves, in fact they could probably fund this not out of cash flow, but out of their own reserves.

"It depends on whether they believe they would be putting good money after better money.

"I think the argument that's in place today is that it could possibly be good after bad."


Singapore's Deputy Prime Minister

Meanwhile, Singapore's Deputy Prime Minister Lee Hsien Loong says the debate over a taxpayer funded rescue package for Ansett does not concern the Singapore Government.

"No it doesn't concern us, I mean that is the decision for the Australian Government to decide," he said.

"This is SIA's matter, it's a commercial matter which SIA has to work out.

"Government shouldn't really get involved, if we did we might get criticised for showing our hand and for intervening in what must be commercial matters."

Mir3

Amos, 218 useless posts! That's surely worth a prize! Congratulations. Poor EEcam having "to do some aviating" with you. I'm sure a legend like you a ruler everywhere just to prove what a big man you are. Can't wait for another of your informative and educational posts. Mendaciousness is about all your good for.

beerpleasehostess

Geez guys do we have to rehash the same ***** over and over. I'm really tired of reading it. Instead lets wait to see what comes out of the meeting tomorrow. As I said in a previous post, AN staff have not been told anything by management. Whether this is good or bad I don't know but the rumour and gossip I really am tired of hearing.

Yes we know AN is in trouble that is fact. As for the rest, I suggest at least half or more of what you read here is fuelled by the same rumour and speculation of ill informed staff and media.

A look at the AN flight board today, I don't recall any cancellations at all.

All will be revealled over the next few days I suggest. In the meantime give it a break guys.

Vx

An Oz Federal election is about as far away as you can throw a fat Afgan.

So, what are the chances that Ansett will be allowed to collapse before the election ?
Conversely, what are the chances that Johhny Howard will intervene to prevent it, or at least delay any AN collapse until after the election ?

Mmmm, good timing, eh ?!

Wirraway

"Melbourne Age" :

Ansett's future in the balance

By TIM COLEBATCH
CANBERRA
AND JOHN SCHAUBLE
SUZHOU

Monday 10 September 2001

Nervous staff appeal for job security
Qantas discount scheme
Comment by Tim Colebatch
The jobs of 17,000 Ansett employees around Australia are now under threat, amid fears that the airline could be dumped into receivership this week.

In Auckland, an emergency meeting of the board of Ansett's owner, Air New Zealand, ran into the night as it tried to frame a new plan to stop Ansett's losses swallowing up Air New Zealand itself.

Both airlines and the governments of Australia and New Zealand refused to comment on a report in New Zealand's Sunday Star-Times that Air New Zealand was now considering cutting off Ansett and putting it in receivership to ensure its own survival.

But sources warned that such a course could run into legal obstacles, as Australian courts have ruled in the past that companies cannot escape responsibility for the debts of their subsidiaries.

In Suzhou, China, Treasurer Peter Costello promised a "very sympathetic hearing" for any foreign airline willing to buy into Ansett, and hinted that Ansett's survival prospects could be improved if a foreign airline bought into it directly, rather than through Air New Zealand.

"It is clear to me that Air New Zealand itself would not be in a position to put more capital into Ansett," Mr Costello said. "If somebody increased their stake in Air New Zealand, that might help it.

"But if somebody else was to come along and put some more capital into Ansett, that would be a more direct way of helping the business of Ansett and (its) employees ... You could only get a new investor in Ansett if Air New Zealand were to withdraw."

Ansett's problems have deepened to a crisis with last week's announcement by Air New Zealand that the Australian airline is now losing $1.3 million a day, over-whelming the profits made by Air New Zealand's own operations.

Singapore Airlines last Friday withdrew its offer to rescue the two airlines by paying $NZ1.31 ($A1.10) a share to lift its stake in Air New Zealand from 25 per cent to 49 per cent. The Singaporean carrier had earlier rejected proposals that it take Ansett off Air New Zealand's hands.

In a bizarre twist, Qantas chief executive Geoff Dixon revealed at the weekend that Air New Zealand's board had even asked Qantas to buy Ansett. Mr Dixon said Qantas rejected the offer as "not something we felt we could seriously consider".

Analysts predict Singapore Airlines is now likely to pay no more than half the amount previously offered to take control of the New Zealand carrier, even if New Zealand's Labour government withdrew its objections to its national airline coming under Singapore Government control.

Australian Government sources said the initiative now rested with the Air New Zealand board and the New Zealand Government. But Prime Minister John Howard has refused to rule out joint action by the two governments to underwrite a new capital float by Air New Zealand.

Opposition Leader Kim Beazley reiterated Labor's willingness to support the use of taxpayer funds to help rescue Ansett if the two governments felt it necessary. "There may need to be some taxpayers' resources devoted to this," he said. "Something has to be put together which keeps Ansett operating."

NZ Prime Minister Helen Clark promised New Zealanders at the weekend that her government would not allow Ansett's losses to bring down their national carrier. "The bottom line is that Air New Zealand as the national carrier has to be kept flying", she said. "Life without Air New Zealand is unthinkable."

Wirraway

Sunday September 9, 10:01 PM (S/Pore)

AUCKLAND (Reuters) - The board of troubled national flag carrier Air New Zealand Ltd was still meeting late into the night on Sunday as it searched for funding to renew the ageing fleet of its loss-making Australian subsidiary, Ansett Airlines.

By 0040 a.m. (1240 GMT), the Air NZ board was still in session, although legal advisers had left the meeting, which started at 4:00 p.m. (0400 GMT).

An Air NZ spokesman told Reuters the talks on refinancing were continuing, but no resolution was imminent.

The crisis meeting comes as speculation on Ansett's future intensifies after Air NZ withdrew Ansett's advertising programme.

Under Australian corporate law, a secured creditor appoints a receiver when a company it has advanced money to defaults on the terms of the loan. The receiver's role is then to realise assets for the benefit of the secured creditor, and it is usually in the interests of that creditor for the company to continue to trade so as to obtain the best price for the business.

Chimbu chuckles

What chance is there that ANZ will do one last strip of whatever assets AN has left before leaving the carcass for Australia to wonder at!
I agree with Wiley that a resurection of a Govt owned, well run Ansett National Airways is the way forward, if only to bring some balance and control back to OZ skies.
Costelo's comments smack of SQ being welcomed in to pick up AN for a steal, such a shame.

Chuck.

Wirraway

"Melbourne Age" Comment

Why Ansett is in big trouble

By TIM COLEBATCH
Monday 10 September 2001

It's been a great year for Australian air travellers. At one point we could fly from Melbourne to Sydney for $38.50, and even now you can book tickets via e-mail from $77. But it has been a fool's paradise.

A great year for travellers has been a terrible year for airlines. They have been flying us at less than cost, and instead of making money for shareholders, they have been losing it. None more than Ansett, operating with an old, eclectic mix of aircraft, higher staff ratios than its rival, and no ally in the cut-price ranks.

Air New Zealand now tells us that its Australian subsidiary is losing close to $10 million a week as the price war continues. The Kiwis have tried to sell Ansett to Qantas, which sensibly declined. Lots of people have been trying to sell Ansett to Singapore Airlines, but it too has sensibly declined.

Not only Ansett is bleeding. Even Qantas, in far better shape, has reported a 20 per cent profit plunge. Impulse has quit the battle. Yet Virgin Blue, sustained by the deep pockets of its British parent, continues to make war on the old duopoly. And, as much as any other single factor, that is the cause of Ansett's problems.

For months, industry players and analysts have been debating the merits of various solutions: allowing Singapore Airlines to own 49per cent of Air NZ and Ansett alike (as it has proposed), giving Singapore all of Ansett, with Qantas taking all of Air NZ (as Qantas proposes), or giving Singapore all of Ansett and allowing Virgin Blue to merge with Air NZ (as Virgin Blue proposes).

But while Treasurer Peter Costello yesterday virtually promised a green light for any foreign airline to buy into Ansett, one would have to ask why any investor would want to buy into an airline losing $10 million a week, and a price war that could go on for years.

Ansett already has the second oldest fleet among the world's 50 biggest airlines, and is estimated to need to invest at least $4 billion to catch up. The investors Mr Costello is urging on would want to be pretty confident that they would get a decent return on their money.

That implies that a solution to the Ansett crisis may well require an end to the air fare war. And that in turn implies that Virgin Blue may have to be part of the final settlement, merging in some form to become part of Australia's second airline.

If that happens, say goodbye to those cheap air fares. The duopoly would be back, and discounting would quietly wind up. The economic law of gravity suggests that two airlines are all we can support.

Wirraway

Melbourne "Herald Sun" :

Airline bosses locked in talks
By MARK PHILLIPS and IAN ROYALL
10sep01

THE Australian Government was holding urgent talks on the Ansett crisis last night, as owner Air New Zealand's board tried to hatch a rescue plan.





And a staff buy-out plan could be revived to help save the cash-strapped airline.
Acting Prime Minister John Anderson flew to Canberra yesterday afternoon for talks with Ansett and Qantas. The talks were aimed at developing plans for Ansett's future.

Mr Anderson was also trying to contact NZ Prime Minister Helen Clark for talks. Air NZ directors were locked in talks last night.

Treasurer Peter Costello welcomed a foreign buyer stepping in to take on Ansett, but again ruled out bailing out the ailing airline.

A staff buy-out plan could also be revived as part of a bail-out bid for Ansett.

The head of an employee committee that tried to buy a half share of the airline last year said it was ready to resurrect the plan.

Details of the staff buy-out plan have been sent to the airline's chief executive, Gary Toomey.

Captain Gavan Spring, an Ansett pilot who heads the Ansett Employee Buy-out Steering Committee, said the group would approach the Air NZ board about taking an equity stake.

The proposal, which would need formal endorsement from Ansett's unions, would be for a "salary exchange", where employees would accept a pay cut in return for a share of the airline and future profits.

Linda White, assistant national secretary of the largest union at Ansett, the Australian Services Union, said the buy-out proposal deserved to be looked at seriously.

Ansett is losing about $1.3 mil lion a day and needs about $5 billion over five years to upgrade its ageing planes.

Air NZ's annual report is to be released on Thursday, with losses of about $200 million expected.

Wirraway

"Sydney Morning Herald:

Time runs out for Ansett

By Mark Todd, Darren Goodsir and John Schauble in Suzhou, China

Ansett looks certain to be abandoned by its parent, Air New Zealand, and its immediate fate decided by receivers as early as today.

The airline's main chance of survival faded last night when the Federal Government insisted it would not back a taxpayer-funded bail-out.

With trans-Tasman talks failing to secure enough capital to save Ansett, calling in the receivers - the first stage in winding up Australia's second-biggest domestic carrier - could occur today.

Much hinges on a New Zealand Cabinet meeting today.

Air New Zealand's distressed board is believed to have exhausted all options to keep both airlines afloat.

The New Zealand Prime Minister, Ms Helen Clark, virtually sounded the death-knell for Ansett, which employs 16,000 workers and whose only genuine rescuer, Singapore Airlines, has all but walked away from a planned $4 billion cash and fleet resuscitation.

Adding weight to reports Ansett would be excised, she said Air New Zealand would not be toppled by its subsidiary, bleeding $1.3 million a day.

Ms Clark said: "The bottom line is Air New Zealand as the national airline has to be kept flying. Life without Air New Zealand is unthinkable."

As Ansett cancelled all national advertising, Air New Zealand's board held an emergency session late into the night. But their apparent failure to find a solution to the crisis is likely to lead to further severe falls in the company's share price, which has recorded three successive record lows.

The 25 per cent dive in the stock's value in the past week has undermined attempts to attract new investors, leading to renewed pressure on the Federal Government to go guarantor for Ansett, or fund a bail-out to avert its collapse and the political calamity of lost jobs, ditched routes and higher air fares.

But now a taxpayer-led rescue has been scotched, Ansett insiders say only two options remain. The first is for Qantas, the market leader, to take over Ansett alone, or together with its struggling parent.

This "Canadian option" - a reference to that nation's monopoly airline market - was unlikely to garner support from the Australian Competition and Consumer Commission or politicians, wary of the impact on air fares that may occur under such a regime.

The other option, in the absence of a buyer, is for receivers to be appointed. Receivers might not ground Ansett, but would seek to stem losses, and generate cash by slashing jobs and services.

Under this option, forward ticket bookings would be honoured, but frequent flyers would be in doubt.

In China after talks with New Zealand's Finance Minister, Dr Michael Cullen, the Treasurer, Mr Costello, repeated the Government's opposition to a rescue, pinning hopes on the unlikely prospect of a buyer.

"Air New Zealand is a privately-owned New Zealand company," he said. "Ansett is its subsidiary. The ownership of Ansett is in the hands of a privately-owned New Zealand company. "This is a matter for the shareholders and directors of that company to determine its commercial outcome."

Unions representing some of the worried workforce held a rally in Melbourne yesterday. There will be more union meetings today to push for Government support to keep Ansett flying.

Industry analysts say Air New Zealand has been left with little option but to cut lose Ansett after realising the business is now worth less than half the $1.2 billion they paid for it. It will announce it has written down the value of Ansett by more than $500 million, or roughly the entire market capitalisation of its parent.

If Air New Zealand does not move to isolate Ansett, it could leave the airline in breach of conditions covering some $4 billion in debt, putting it at the mercy of its bankers.

Putting Ansett into receivership may see the airline broken up, putting jobs at risk.

Wirraway

"The Australian" :

Ansett clear for takeover

By Steve Creedy and Sid Marris
September 10, 2001

ANSETT is likely to be sold to another airline after a marathon Air New Zealand board meeting yesterday scrambled to avoid placing the Australian carrier in voluntary administration.

Treasurer Peter Costello cleared the way for another foreign airline to take over Ansett. Singapore Airlines is the most logical candidate.

Dispelling any suggestion of government involvement in the financial restructuring of the Ansett-Air New Zealand Group, the Treasurer indicated approval for a new foreign owner could be swift and would receive "very favourable" consideration.

"Ansett is a foreign airline. If there were another foreign company that wanted to take a position in Ansett, then it would pass from one foreign owner to another foreign owner," he said. "I do not see that as a major problem."

Mr Costello's comments open the way for either a sale of the Australian carrier to Singapore or a restructuring under voluntary administration. But the Singaporeans have made it clear they are reluctant to take on Ansett as a stand-alone entity in its current state.

Sources confirmed last night that placing Ansett in voluntary administration, possibly as a prelude to a massive overhaul of the carrier, was one of several options.

Members of the Air New Zealand board met in Auckland until late last night to discuss the future of the group after revelations last week that Ansett was losing $1.3 million a day.

The extent of Air NZ's desperation was confirmed at the weekend after Qantas revealed the New Zealand carrier had asked it to buy Ansett.

The airline also pulled all national advertising for its Ansett subsidiary. Spokeswoman Heather Jeffery said the advertising decision was standard business practice during a crisis.

"We don't think it's appropriate at the moment to be investing heavily and promoting heavily in the market," she said.

John Howard and Transport Minister John Anderson had previously appeared to leave open the option of some form of commonwealth financial guarantee, but it is understood there was never any request for federal government involvement.

Mr Anderson flew to Canberra and held talks with major airlines and senior officials.

"The board and the management of Air New Zealand are entirely responsible for the company's financial circumstances," he said.

Air NZ shares plunged on Friday after the airline was forced to reveal Ansett's daily losses and that Singapore Airlines had backed away from an offer to raise its stake in the Kiwi carrier to 49 per cent.

Worried Ansett staff yesterday launched a campaign to keep the airline flying.

The Australian Services Union wants the public to get behind Ansett employees.

"Ansett employs 16,000 Australians," said assistant national secretary Linda White. "It is the backbone of a further 25,000 jobs in industries as diverse as tourism, catering, engineering, maintenance and many more."

But analysts believe job losses are inevitable at Ansett regardless of deliberations in New Zealand.

Feeton Terrafirma

In a brief anouncement Monday AM the Australian Frederal Government has stated that they "will come up with a resuce plan" for Ansett if the AirNZ board & NZ Govt. fail to do so.

So there you have it! Ansett is safe!

cough cough splutter........ hmmm


I guess it's an election year.

429 CJ

I just thought that I would zap my post in here under Feeton before lame could !

Wirraway, you tireless person you - Do you EVER sleep?

To Mir3, nice stir-up mate, but don't you think that whilst some of us may not always agree with his/their posts, don't you think that they have a right to an opinion and to be heard just as much as you do?

lame

429CJ,

You cannot do that..............

PLEASE delete that post..........

Everyone knows I post next........



Best regards,

"lame"

lame

This just in from ABC on line news..

*Federal govt prepares for the worst in Ansett's future*

The Federal Government has prepared a worst-case scenario plan in case
Ansett Airlines cannot keep operating.

Ansett's future is expected to be clearer today after its owner, Air New
Zealand's board meets again.

Acting Prime MInister, John Anderson has had emergency plans drawn up in
case the Board decides on a drastic change which would affect Ansett's
16, 000 staff in Australia.

He says the Government is extremely concerned about the company's
employees, the travelling public and the regional communities which are
served by Ansett.

He cancelled other plans and flew instead to Canberra yesterday for
talks with other airlines. It is understood he is trying to ensure
disruption is limited if Ansett collapses, is scaled down or onsold to
another airline.

Treasurer Peter Costello supported the idea of Ansett being sold to
another airline, after his meeting with the New Zealand Finance
Minister, Michael Cullen.

Mr Anderson also had talks last night with the New Zealand Prime
MInister, Helen Clark and is likely to speak to her again today.

The Federal Government's opposed to a financial bailout for Air New
Zealand as a way of solving the Ansett crisis.
------------

lame

And the latest from New Zealand......

TOP STORY

MONDAY, 10 SEPTEMBER 2001

T O P S T O R Y

Australia prepares to move on Ansett crisis
10 September 2001

By ROELAND VAN DEN BERGH and JONATHAN MILNE
Australia's acting Prime Minister John Anderson has cancelled appointments today to give his full attention to resolving the Ansett crisis.

Mr Anderson spent yesterday talking with airlines and senior officials. He said last night he was waiting to hear from Air New Zealand and his officials had worked through the weekend to develop plans to deal with all potential outcomes.

He was seeking to contact New Zealand Prime Minister Helen Clark last night.

A spokesman for Miss Clark said he did not expect any comment from her.

In Auckland, crisis talks were continuing late last night as the directors of Air New Zealand and "others" held a series of meetings to thrash out a proposal to extricate the airline from financial problems caused by its subsidiary Ansett Australia.

Ansett appeared at the weekend to be preparing to close its doors, analysts said. It withdrew its Australian advertising without notice.

Sources close to negotiations to salvage the airline said last night that they expected Air New Zealand would place Ansett in receivership or court appointed administration if a proposal to save it could not be agreed.

The decision involving Ansett will not affect the operations of Air New Zealand.

By 10pm the board had not met in full to discuss a proposal. Air New Zealand spokesman Mark Champion said a series of meetings between the various interested parties "and others" began at 4pm yesterday.

"We haven't got to a full board meeting at this point . . . and there is one scheduled for tomorrow.

He would not comment on whether or not the Australian Government had been in touch with Air New Zealand yesterday.

The New Zealand Government has said it would consider any rescue proposal put before it by the board, and discuss it with Canberra.

Sources said yesterday that about A$2 billion (NZ$2.4 billion) was needed to turn Ansett Australia around.

This meant it could be cheaper to close the airline and start again, they said. Ansett Australia is losing $1.6 million a day.

Mr Champion confirmed a decision to withdraw advertising without notice for Ansett Australia but would not comment further.

But the move was seen by industry analysts as a sign that the airline's demise was imminent.

Frantic talks at the weekend focused on how Air New Zealand would quit Ansett Australia, and building a business case to recapitalise Air New Zealand to be considered by the Government today, sources said.

It is understood that if quarter-owner Singapore Airlines increased its stake to 49 per cent of Air New Zealand, and supported a subsequent rights issue, no Government bailout would be needed for the national carrier.

However, this would depend on how much Singapore Airlines was prepared to pay.

Singapore Airlines had reduced its offer to pay $1.31 a share to at least $1 and possibly less.

The options for the Australian Government are to either guarantee debt to keep Ansett Australia flying, or bail out the airline, Australia's second biggest, with a view to breaking it up and distributing its assets among existing carriers to maintain competition.

Mr Anderson told The Sun-Herald in Sydney that his government would consider only a joint underwriting of a cash issue with the New Zealand Government.

Qantas rejected an offer on Friday from the Air New Zealand board to take over Ansett, sources said.

The sources said the Australian Government could be prepared to consider a relaxation of the competition rules if Qantas was required to rescue Ansett.

Miss Clark said yesterday that Air New Zealand had flown into a fully fledged crisis.

"It's a crisis for Air New Zealand. That doesn't make it a crisis for New Zealand."

Miss Clark said the Government was still waiting for a "viable" proposition. "The ideal outcome from the Government's point of view is that the koru keeps flying with absolutely minimal cost to the New Zealand taxpayer."

Her job was to minimise the cost for the taxpayer, and where the remaining cost fell was for the Air New Zealand's owners.

"I think in the normal course of events the shareholders would be expected to deal with that, and that's Brierleys and Singapore Airlines predominantly.

"Mr Howard has made very similar statements to mine - that they have no enthusiasm for equity shares in airlines."