Qantas to challenge Virgin terminal bid
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Qantas to challenge Virgin terminal bid
AAP
Qantas to challenge Virgin terminal bid
Qantas Airways Ltd is preparing to enter a bidding war against low-fare rival Virgin Blue for Ansett's Sydney terminal, according to a newspaper report.
Australia's largest airline said it was in discussions with the administrators of collapsed airline Ansett about a range of assets including the Sydney terminal, an Australian Financial Review report said.
"We have told them (administrators) we are interested in it," Qantas chief financial officer Peter Gregg is quoted as saying.
Virgin Blue chairman Sir Richard Branson yesterday outlined the discount carrier's plans to bid for four Ansett terminals on Australia's east coast, excluding Sydney, and to invest $3.6 million on the expansion of the airline's fleet.
The discount carrier had not yet lodged a bid for the Sydney terminal because of a legal dispute between Ansett's administrators and Sydney Airport Corporation Ltd (SACL), which wants to assume control of the terminal.
Virgin Blue chief executive Brett Godfrey said he had reservations about Qantas likely bid.
"Either way, they want to own 100 per cent of terminal space at Sydney Airport to lock out competition or they want to bid up the price," Mr Godfrey was quoted as saying.
A bidding war could boost the price the administrators secure for the asset and produce a higher payout to sacked Ansett staff, who are owed $720 million in entitlements but face the possibility of not receiving their full entitlements, the report said.
The report also said a Qantas bid would be heavily scrutinised by the Australian Competition and Consumer Commission because it would leave the dominant airline with control of both major domestic terminals.
Ansett administrators Mark Korda and Mark Mentha were yesterday granted a one-week extension on adopting a creditor-approved deed of company arrangement.
Mr Korda and Mr Mentha will now accept offers for the terminals until May 6, before announcing a preferred bidder two days later with a complete sale by May 24.
İAAP 2002
Qantas to challenge Virgin terminal bid
Qantas Airways Ltd is preparing to enter a bidding war against low-fare rival Virgin Blue for Ansett's Sydney terminal, according to a newspaper report.
Australia's largest airline said it was in discussions with the administrators of collapsed airline Ansett about a range of assets including the Sydney terminal, an Australian Financial Review report said.
"We have told them (administrators) we are interested in it," Qantas chief financial officer Peter Gregg is quoted as saying.
Virgin Blue chairman Sir Richard Branson yesterday outlined the discount carrier's plans to bid for four Ansett terminals on Australia's east coast, excluding Sydney, and to invest $3.6 million on the expansion of the airline's fleet.
The discount carrier had not yet lodged a bid for the Sydney terminal because of a legal dispute between Ansett's administrators and Sydney Airport Corporation Ltd (SACL), which wants to assume control of the terminal.
Virgin Blue chief executive Brett Godfrey said he had reservations about Qantas likely bid.
"Either way, they want to own 100 per cent of terminal space at Sydney Airport to lock out competition or they want to bid up the price," Mr Godfrey was quoted as saying.
A bidding war could boost the price the administrators secure for the asset and produce a higher payout to sacked Ansett staff, who are owed $720 million in entitlements but face the possibility of not receiving their full entitlements, the report said.
The report also said a Qantas bid would be heavily scrutinised by the Australian Competition and Consumer Commission because it would leave the dominant airline with control of both major domestic terminals.
Ansett administrators Mark Korda and Mark Mentha were yesterday granted a one-week extension on adopting a creditor-approved deed of company arrangement.
Mr Korda and Mr Mentha will now accept offers for the terminals until May 6, before announcing a preferred bidder two days later with a complete sale by May 24.
İAAP 2002
QF can't lose with this bid. Either they get the AN terminal, which means they don't have to extend their existing terminal or they force DJ or SACL into paying a higher price for the AN terminal which ultimately pushes up DJ's costs. I expect QF will also tender for a large part of AN's maintenance and ground facilities for much the same reasons.
QF admit that they don't want the whole SYD terminal and will lease parts of it to other airlines. Realistically, they only want the newer B concourse which they can connect quite easily to their existing terminal and maybe the Golden Wing.
The ACCC will have a role to play in this but it would be a dangerous action by it if it denied the AN administrators the right to access the highest offer for the AN terminal. After all, this money is destined for ex-AN staff's entitlements. Would the government want to be a party to an arrangement which denied people their maximum due?
Interesting times!!
QF admit that they don't want the whole SYD terminal and will lease parts of it to other airlines. Realistically, they only want the newer B concourse which they can connect quite easily to their existing terminal and maybe the Golden Wing.
The ACCC will have a role to play in this but it would be a dangerous action by it if it denied the AN administrators the right to access the highest offer for the AN terminal. After all, this money is destined for ex-AN staff's entitlements. Would the government want to be a party to an arrangement which denied people their maximum due?
Interesting times!!
Evertonian
1A. To add to your points, I recall Qantas bidding ridiculously for Hazelton when they didn't really want it. It ultimately hurt AN/ANZ by paying way too much. I don't think DJ will get sucked in quite as easily though.
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Fri "Melbourne Age"
Qantas wants Ansett terminal
By Leonie Wood
April 19 2002
The battle of the skies has shifted into the concourses with Virgin Blue yesterday saying it would strongly oppose any move by Qantas to take over Ansett's vacant terminal at Sydney airport.
Confirmation that Australia's dominant carrier is one of the potential bidders for the Sydney terminal - considered the prize strategic asset in Ansett's defunct portfolio - has thrown new light on the possible redevelopment opportunities at the country's busiest airport.
As many as 15 bidders are interested in some of Ansett's assets. Among them are infrastructure funds, although not all are interested in the failed airline's terminals.
Also on the list of buyers is the Federal Government-owned Sydney Airport Corp Ltd, which is itself on the auction block and wants more control over how its domestic terminals are run.
Qantas' chief financial officer Peter Gregg said the airline lodged its expression of interest with Ansett's administrators, Mark Mentha and Mark Korda of accounting firm Andersen, on Wednesday.
He said Qantas needed the additional gates at the Ansett terminal to service its burgeoning domestic business and to provide direct-to-plane access for its regional airlines.
"We believe we should be in charge of our own destiny," Mr Gregg said, adding that Qantas wanted the lease on terms at least as favorable as those offered to the Tesna consortium which dumped its bid for Ansett in late February.
But a spokesman for SACL said the only lease terms changed for Tesna related to what type of firm could own the lease, not the level of rental rates.
Mr Gregg said if Qantas was successful, it would make space available on a common user basis for Virgin Blue and other airlines after consultation with the Australian Competition and Consumer Commission.
But Virgin Blue chief executive Brett Godfrey dismissed Mr Gregg's promises of gate access, saying "history has suggested otherwise".
Mr Godfrey also questioned Qantas' motives for entering the bidding process.
"I think it's mischievous more than anything else," he said. "We will be strongly opposing it. They have already got more than 50 per cent of the infrastructure; why would they want more of it?"
After a lacklustre start to the bidding process, the Ansett administrators were suddenly swamped with offers for the terminals last week, with most of the action centred on the Sydney lease and the freight division.
Infrastructure funds believe SACL will triumph, even though it may need to pay up to $300 million to buy a lease on its own land.
Virgin Blue and its new partner, Patrick Corporation, this week lodged what Mr Godfrey yesterday called "formal bids", including a firm price, for four disused Ansett terminals.
Mr Godfrey confirmed Virgin Blue/Patrick had not lodged a formal bid for the Sydney terminal, although he conceded the budget carrier was anxious to secure some form of gates and passenger access there.
Australian Financial Review:
The Federal Government has opposed Qantas Airways' plan to bid for Ansett's Sydney terminal, arguing that it would be anti-competitive.
Qantas wants Ansett terminal
By Leonie Wood
April 19 2002
The battle of the skies has shifted into the concourses with Virgin Blue yesterday saying it would strongly oppose any move by Qantas to take over Ansett's vacant terminal at Sydney airport.
Confirmation that Australia's dominant carrier is one of the potential bidders for the Sydney terminal - considered the prize strategic asset in Ansett's defunct portfolio - has thrown new light on the possible redevelopment opportunities at the country's busiest airport.
As many as 15 bidders are interested in some of Ansett's assets. Among them are infrastructure funds, although not all are interested in the failed airline's terminals.
Also on the list of buyers is the Federal Government-owned Sydney Airport Corp Ltd, which is itself on the auction block and wants more control over how its domestic terminals are run.
Qantas' chief financial officer Peter Gregg said the airline lodged its expression of interest with Ansett's administrators, Mark Mentha and Mark Korda of accounting firm Andersen, on Wednesday.
He said Qantas needed the additional gates at the Ansett terminal to service its burgeoning domestic business and to provide direct-to-plane access for its regional airlines.
"We believe we should be in charge of our own destiny," Mr Gregg said, adding that Qantas wanted the lease on terms at least as favorable as those offered to the Tesna consortium which dumped its bid for Ansett in late February.
But a spokesman for SACL said the only lease terms changed for Tesna related to what type of firm could own the lease, not the level of rental rates.
Mr Gregg said if Qantas was successful, it would make space available on a common user basis for Virgin Blue and other airlines after consultation with the Australian Competition and Consumer Commission.
But Virgin Blue chief executive Brett Godfrey dismissed Mr Gregg's promises of gate access, saying "history has suggested otherwise".
Mr Godfrey also questioned Qantas' motives for entering the bidding process.
"I think it's mischievous more than anything else," he said. "We will be strongly opposing it. They have already got more than 50 per cent of the infrastructure; why would they want more of it?"
After a lacklustre start to the bidding process, the Ansett administrators were suddenly swamped with offers for the terminals last week, with most of the action centred on the Sydney lease and the freight division.
Infrastructure funds believe SACL will triumph, even though it may need to pay up to $300 million to buy a lease on its own land.
Virgin Blue and its new partner, Patrick Corporation, this week lodged what Mr Godfrey yesterday called "formal bids", including a firm price, for four disused Ansett terminals.
Mr Godfrey confirmed Virgin Blue/Patrick had not lodged a formal bid for the Sydney terminal, although he conceded the budget carrier was anxious to secure some form of gates and passenger access there.
Australian Financial Review:
The Federal Government has opposed Qantas Airways' plan to bid for Ansett's Sydney terminal, arguing that it would be anti-competitive.
Nunc est bibendum
Mr Godfrey also questioned Qantas' motives for entering the bidding process.
"I think it's mischievous more than anything else," he said. "We will be strongly opposing it. They have already got more than 50 per cent of the infrastructure; why would they want more of it?"
"I think it's mischievous more than anything else," he said. "We will be strongly opposing it. They have already got more than 50 per cent of the infrastructure; why would they want more of it?"
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This is typical of some of the garbage coming out of Virgin. They love to cry foul and this is it all over again. At the same time though, I think in Private they would welcome Qantas Buying the Terminals.
Are Virgin nit currently contracting many of their ground services nationwide from Qantas??
I recall reading somewhere that Qantas Provide Ramp services, Line maintenence and the like to DJ at heavily discounted prices.
With the ACCC playing Bad cop over Qantas' shoulders at the moment ( and for the forseeable future) this might be perfect timing for Virgin to sub-lease the space they need, with little or no capital outlay.
Seems Win-Win for Virgin. All the space they want at the Domestic terminals, at a reduced (ACCC Dicsounted) rate.
Good luck I reckon.
Are Virgin nit currently contracting many of their ground services nationwide from Qantas??
I recall reading somewhere that Qantas Provide Ramp services, Line maintenence and the like to DJ at heavily discounted prices.
With the ACCC playing Bad cop over Qantas' shoulders at the moment ( and for the forseeable future) this might be perfect timing for Virgin to sub-lease the space they need, with little or no capital outlay.
Seems Win-Win for Virgin. All the space they want at the Domestic terminals, at a reduced (ACCC Dicsounted) rate.
Good luck I reckon.
