News: Virgin outraged by AN Tassie deal
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News: Virgin outraged by AN Tassie deal
Virgin outraged by Ansett Tassie deal
By GEOFF EASDOWN and KAREN COLLIER
27oct01
ANSETT Mark II is planning to spread its wings to Launceston, sparking outrage from cut-price rival Virgin Blue.
Virgin last night claimed the travel plans of thousands of Victorians were threatened because of the Federal Government's latest deal with Ansett.
The Government yesterday extended its controversial taxpayer-funded backing for Ansett Mark II to the route.
Virgin, which was to use former Ansett terminal and check-in facilities at Launceston from November 8, was told yesterday the offer was on hold.
"What they have done is vindictive and arrogant," Virgin Blue commercial head David Huttner said.
In an election campaign deal to get Ansett to resume flights to northern Tasmania, the Government has agreed to subsidise any losses Ansett incurs on the Melbourne-Launceston sector.
The Government is fighting a tough campaign to win back the Launceston-based marginal seat of Bass from the Labor Party.
The politics of the deal became obvious when the Ansett decision was announced, not by the airline or Federal Transport Minister John Anderson, but by the endorsed Liberal Party candidate for Bass, Tony Benneworth.
Ansett said subsidiary Kendall Airlines would operate seven daily flights on the Launceston route with 35-seat Saab aircraft. Fare details have not been announced.
The service will give northern Tasmania a two-airline link to the mainland, complementing Qantas' operations.
Vowing Virgin Blue would not hoist a white flag over Launceston, Mr Huttner said the initial launch date was now being reviewed. He said the carrier would use manual check-in arrangements if necessary and possibly seek help from Qantas.
The Launceston row comes on top of an earlier flare-up by Qantas over the Government's decision to give subsidies worth up to $400,000 a week to encourage competition on unprofitable routes.
Ansett Mark II will get taxpayer funding if its loads fall below 60 per cent on flights to Adelaide, Hobart and now Launceston.
Virgin Blue has been promised similar backing, and may seek support for the Launceston and Darwin sectors.
Mr Anderson yesterday spoke with Qantas officials to defend the subsidies.
He had earlier said the national aviation industry could not allow routes to Adelaide and Hobart to remain stagnant for too long.
The industry was at a critical stage and every opportunity should be given to allow operators to survive, he said.
Mr Anderson also said the deals with Ansett and Virgin Blue were not open-ended.
He believed Ansett Mark II could be commercially viable by as early as January.
By GEOFF EASDOWN and KAREN COLLIER
27oct01
ANSETT Mark II is planning to spread its wings to Launceston, sparking outrage from cut-price rival Virgin Blue.
Virgin last night claimed the travel plans of thousands of Victorians were threatened because of the Federal Government's latest deal with Ansett.
The Government yesterday extended its controversial taxpayer-funded backing for Ansett Mark II to the route.
Virgin, which was to use former Ansett terminal and check-in facilities at Launceston from November 8, was told yesterday the offer was on hold.
"What they have done is vindictive and arrogant," Virgin Blue commercial head David Huttner said.
In an election campaign deal to get Ansett to resume flights to northern Tasmania, the Government has agreed to subsidise any losses Ansett incurs on the Melbourne-Launceston sector.
The Government is fighting a tough campaign to win back the Launceston-based marginal seat of Bass from the Labor Party.
The politics of the deal became obvious when the Ansett decision was announced, not by the airline or Federal Transport Minister John Anderson, but by the endorsed Liberal Party candidate for Bass, Tony Benneworth.
Ansett said subsidiary Kendall Airlines would operate seven daily flights on the Launceston route with 35-seat Saab aircraft. Fare details have not been announced.
The service will give northern Tasmania a two-airline link to the mainland, complementing Qantas' operations.
Vowing Virgin Blue would not hoist a white flag over Launceston, Mr Huttner said the initial launch date was now being reviewed. He said the carrier would use manual check-in arrangements if necessary and possibly seek help from Qantas.
The Launceston row comes on top of an earlier flare-up by Qantas over the Government's decision to give subsidies worth up to $400,000 a week to encourage competition on unprofitable routes.
Ansett Mark II will get taxpayer funding if its loads fall below 60 per cent on flights to Adelaide, Hobart and now Launceston.
Virgin Blue has been promised similar backing, and may seek support for the Launceston and Darwin sectors.
Mr Anderson yesterday spoke with Qantas officials to defend the subsidies.
He had earlier said the national aviation industry could not allow routes to Adelaide and Hobart to remain stagnant for too long.
The industry was at a critical stage and every opportunity should be given to allow operators to survive, he said.
Mr Anderson also said the deals with Ansett and Virgin Blue were not open-ended.
He believed Ansett Mark II could be commercially viable by as early as January.
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I suggest Virgin give back all its assistance given by the QLD state government and the deals with the NT governmentbefore it complains about any assistance to Ansett. If you check out what has been offered it is only in the situation that loads are below a certain figure that any assistance will be given. It could be the case that no money will be required. So VB shut up or give your assistance packages back.
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You guys just don't get it do you? DJ would have schedules published, lots of seats sold (considering $50 fares etc), rosters published for all crews and 160 seat capacity aircraft lined up to go in to LST.
They now appear to have been told "sorry the terminal we told you you could use... well you can't we've got a very important 36 seat aircraft coming in instead. I'd be pissed off too! Not to mention those people who've bought tickets!
[ 26 October 2001: Message edited by: Theo Racle ]
They now appear to have been told "sorry the terminal we told you you could use... well you can't we've got a very important 36 seat aircraft coming in instead. I'd be pissed off too! Not to mention those people who've bought tickets!
[ 26 October 2001: Message edited by: Theo Racle ]
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Virgin didn't plan to be subsidised on the Perth routes. It was only because the Govt decided to subsidise AN that it became an issue. Whats good for the goose is good for the gander. The subsidies won't last much past Nov 10 I'm sure. Its a vote buying excercise and VB can survive without it in any case.
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The governmaent didn't subsidise Impulse, or Virgin when they started, and they've never subsidised Qantas on routes that they were operating at a loss over the years to ensure that competition remained.
Everyone else, apart from the government agrees that only two airlines are sustainable in Australia. It was their approval, and the Queensland govt suppport of Virgin that led to the disaster that we have today.
This is by no means badmouthing Branson, he saw an oportunity and naturally had to run with it.
Everyone else, apart from the government agrees that only two airlines are sustainable in Australia. It was their approval, and the Queensland govt suppport of Virgin that led to the disaster that we have today.
This is by no means badmouthing Branson, he saw an oportunity and naturally had to run with it.
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engage left autopilot
You are not seriously suggesting that the Queensland government and Virgin caused the demise of Ansett are you ?
the Queensland govt suppport of Virgin that led to the disaster that we have today.
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At the end of the day, Launceston is going to have (even if only for a short while) more than 300 seats more than it did before Ansett folded. Why? By all accounts tourism is down (especially international tourism) and no amount of capacity will change that until people feel more comfortable travelling. Secondly, who's going to fly in a SAAB when they can fly in a (new) jet? As a taxpayer/traveller I object most strongly that not only am I paying $10 per sector extra to fly anywhere these days (perhaps someone can explain why Qantas charge $10 per sector and Virgin charge only $5 - see their website), PLUS, taxpayers money is being WASTED by subsidising air travel into a destination which is adequately serviced. In the name of competition? Hardly. In the name of stupidity more like it! Someone also needs to explain to whoever made this decision that it is a little over 2 hours drive from Launceston to Hobart, and about 1 1/2 hours to Devonport. People do have choices of destination/departure. I suppose now the people of the NW coast will start screaming for a subsidised Virgin service into their ports.
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Glad to see someone else has raised the question on the $10? ticket tax and the disparity of rules. It has been written into the act that DJ only has to collect $5 per sector instead of $10 per ticket. When I raised the issue that a bod flying one way on a 36 seator regional ticket has to pay $10 but on a one way Virgin jet only $5 I was advised that Virgin had managed to convice the Gov of the day that they only sold one way tickets and would be disadvantaged if the rules were not amended. That is the line the Gov. gave???
For that matter better ask how come you also do not have to pay $10 ticket tax towards Ansett staff if you buy and Ansett Mark2 ticket?
For that matter better ask how come you also do not have to pay $10 ticket tax towards Ansett staff if you buy and Ansett Mark2 ticket?
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Qantas aren't charging $10 per ticket - they're charging $10 per sector. Friend just flew Tassie to Brisbane return and had to pay $40 Ansett Tax. And with the Cwlth saying they want to be placed at the top of the list of creditors when Ansett finally folds (or gets sold) so they can recoup their outlay on Ansett staff entitlements, no wonder they're being accused by the unions of double dipping. Am truly stunned though that Ansett Mark II pax don't have to pay the tax? Is that also true for Kendells flights? Yet another subsidy!?!
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djembe56 -
The "Ansett employees rescue ACT" specifically states the charge is $10 per ticket or combination of ticketed travel where the $10 is charged on the first ticket and subsequently should be exempted from all further tickets for the one journey. Unfortunately this means if the agent/airline whomever issues several tickets for the same trip they must manually delete the additional tax - if possible or the customer ends up paying extra. Also don't forget that all airlines now have an additional insurance premium surcharge (QF USD 3.30 per sector / DJ USD1.75 per sector)- your mates may have either confused the two together or their sales agent has not applied the rules properly -
RE Ansett - Up until late last week the taxes applied by AN Mark II did not include sufficient to cover this AN levy. When checking today, wonder of wonders, taxes have increased to apparently include the levy - Their webpage does not give a breakdown to be ab absolutely sure. It looks like now just DJ get the consideration. - My apologies AN (on that matter only)
The "Ansett employees rescue ACT" specifically states the charge is $10 per ticket or combination of ticketed travel where the $10 is charged on the first ticket and subsequently should be exempted from all further tickets for the one journey. Unfortunately this means if the agent/airline whomever issues several tickets for the same trip they must manually delete the additional tax - if possible or the customer ends up paying extra. Also don't forget that all airlines now have an additional insurance premium surcharge (QF USD 3.30 per sector / DJ USD1.75 per sector)- your mates may have either confused the two together or their sales agent has not applied the rules properly -
RE Ansett - Up until late last week the taxes applied by AN Mark II did not include sufficient to cover this AN levy. When checking today, wonder of wonders, taxes have increased to apparently include the levy - Their webpage does not give a breakdown to be ab absolutely sure. It looks like now just DJ get the consideration. - My apologies AN (on that matter only)
