Hazo & Kendell?
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ABC News Online
Posted: Mon, 17 Jun 2002 14:37 AEST
Anderson concerned about Australiawide air speed
Federal Transport Minister John Anderson says he is concerned about the time it is taking for Australiawide to sign off on a deal to buy Hazelton and Kendell Airlines.
One of the losing bidders, The Inland Marketing Corporation, recently expressed doubt that the sale would go through, because of the amount of time it is taking to finalise the deal.
However, Mr Anderson says the Federal Government is doing everything in its power to ensure regional areas are not left without a reliable air service.
"I've been concerned about the amount of time it's taken all the way through," Mr Anderson said.
"That's why I have been quite active in seeking to meet with parties in seeking to address the things they've asked us for, to find ways through a pretty tangled web, but those services are important and we're going not going to give up the fight to make certain they're continued into the future."
Posted: Mon, 17 Jun 2002 14:37 AEST
Anderson concerned about Australiawide air speed
Federal Transport Minister John Anderson says he is concerned about the time it is taking for Australiawide to sign off on a deal to buy Hazelton and Kendell Airlines.
One of the losing bidders, The Inland Marketing Corporation, recently expressed doubt that the sale would go through, because of the amount of time it is taking to finalise the deal.
However, Mr Anderson says the Federal Government is doing everything in its power to ensure regional areas are not left without a reliable air service.
"I've been concerned about the amount of time it's taken all the way through," Mr Anderson said.
"That's why I have been quite active in seeking to meet with parties in seeking to address the things they've asked us for, to find ways through a pretty tangled web, but those services are important and we're going not going to give up the fight to make certain they're continued into the future."
My money is still on Inland Marketing Corp. One only has to look at the the track record of the Australiawide 'CEO', which is to build up a small but specialised aviation operation then flog it off to a major corporation for a few million. The Ozwide motivation is clearly to repeat that process. Thereafter I expect they may proceed on an early retirement. Unfortunately this sort of activity has scant regard for the welfare of families involved, despite initial huff and puff and flag waving to rally support.
On the other hand IMC are backed by a string of regional councils and IMHO genuinely motivated towards promoting regional development and building regional infrastructure in their areas. I know whom I would rather work with.
On the other hand IMC are backed by a string of regional councils and IMHO genuinely motivated towards promoting regional development and building regional infrastructure in their areas. I know whom I would rather work with.
Aust regional airlines buyer under pressure to finalise deal
Source: SYDNEY, June 19 AAP
Published: Thursday June 20 2002, 7:15 AM
The federal government has given the preferred buyer of Kendell and Hazelton airline's five days to finalise the deal or forfeit $5 million in grants and tax exemptions.
The Daily Telegraph says the sale to Australiawide Airlines looked like a replay of the failed rescue bid for Ansett - the parent company of the regional airlines.
The proposed buyer yesterday told the Telegraph it could not rule out following in the footsteps of businessmen Lindsay Fox and Solomon Lew, whose Ansett bid failed at the final hurdle and doomed Australia's second major carrier.
"We can not give any absolute, 100 per cent guarantees," Australiawide spokesman Armon Hicks said.
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"How we see ourselves being different is that it took four months before Tesna (the consortium formed by Fox and Lew) decided to withdraw.
"We are ahead of schedule, we've confirmed our business plan and we have a management team with a breadth of aviation experience."
NSW Government officials will meet with the buyer today as concern grows about the bid, which the Telegraph says has already missed four deadlines to finalise the sale.
Source: SYDNEY, June 19 AAP
Published: Thursday June 20 2002, 7:15 AM
The federal government has given the preferred buyer of Kendell and Hazelton airline's five days to finalise the deal or forfeit $5 million in grants and tax exemptions.
The Daily Telegraph says the sale to Australiawide Airlines looked like a replay of the failed rescue bid for Ansett - the parent company of the regional airlines.
The proposed buyer yesterday told the Telegraph it could not rule out following in the footsteps of businessmen Lindsay Fox and Solomon Lew, whose Ansett bid failed at the final hurdle and doomed Australia's second major carrier.
"We can not give any absolute, 100 per cent guarantees," Australiawide spokesman Armon Hicks said.
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"How we see ourselves being different is that it took four months before Tesna (the consortium formed by Fox and Lew) decided to withdraw.
"We are ahead of schedule, we've confirmed our business plan and we have a management team with a breadth of aviation experience."
NSW Government officials will meet with the buyer today as concern grows about the bid, which the Telegraph says has already missed four deadlines to finalise the sale.
I know it's out of context, but I love this...........
"How we see ourselves being different is that it took four months before Tesna (the consortium formed by Fox and Lew) decided to withdraw.
"We are ahead of schedule................."
Hey, Gaunty me old buddy, care for a little wager??? Say, a descent bottle of quality vino! Not on if, but on when?
"How we see ourselves being different is that it took four months before Tesna (the consortium formed by Fox and Lew) decided to withdraw.
"We are ahead of schedule................."
Hey, Gaunty me old buddy, care for a little wager??? Say, a descent bottle of quality vino! Not on if, but on when?
Don Quixote Impersonator
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Torres mate
Hang on how do we bet aginst each other on this one, I think it would be easier to just buy a bottle each of our fave tipple and drink them in the comfort of a good restaurant somewhere.
Don't get me wrong, having said that I think we would both agree that it would good to see Hazos and Kendalls going properly we just don't want to see a replay of Tesna or any more hurt and disappointment for the people displaced just a little further down the track.
Aviation businesses, particularly regional airline service need seriously committed long term owners and management to survive and prosper.
Strolling adventurers of no fixed percentage need not apply, regional communities will sell you down the river as quick as a flash if they suspect a lack of real long term committment.
Their lives depend on it.
Hang on how do we bet aginst each other on this one, I think it would be easier to just buy a bottle each of our fave tipple and drink them in the comfort of a good restaurant somewhere.
Don't get me wrong, having said that I think we would both agree that it would good to see Hazos and Kendalls going properly we just don't want to see a replay of Tesna or any more hurt and disappointment for the people displaced just a little further down the track.
Aviation businesses, particularly regional airline service need seriously committed long term owners and management to survive and prosper.
Strolling adventurers of no fixed percentage need not apply, regional communities will sell you down the river as quick as a flash if they suspect a lack of real long term committment.
Their lives depend on it.
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AAP
$5m airline bail-out
20jun02
THE Federal Government has offered Australiawide Airlines $5 million and access to Kingsford Smith Airport to encourage it to buy regional airlines Kendell and Hazelton.
The two airlines, which service rural and regional areas, have been in administration since September 14 last year when their parent company Ansett collapsed.
Transport Minister John Anderson said the Government had formalised its offer to Australiawide, which is contingent on the company buying Kendell and Hazelton by 25 June.
The Government will hand over a $5 million grant, air navigation charge exemptions for sub-15 tonne aircraft and three years' guaranteed access to slots at Sydney Kingsford Smith airport now held by the two regional airlines.
"Following extensive discussions with administrators and the preferred bidder, Australiawide Airlines, I have now agreed to provide [this] financial and regulatory assistance in the interests of regional Australia, the travelling public and those many hundreds of people still employed with Kendell and Hazelton," he said in a statement.
"I would urge the parties to make the most of this generous offer and conclude the sale as quickly as possible," he said.
Australiawide has reportedly been unable to guarantee the sale will proceed despite the Government's offers.
AAP
$5m airline bail-out
20jun02
THE Federal Government has offered Australiawide Airlines $5 million and access to Kingsford Smith Airport to encourage it to buy regional airlines Kendell and Hazelton.
The two airlines, which service rural and regional areas, have been in administration since September 14 last year when their parent company Ansett collapsed.
Transport Minister John Anderson said the Government had formalised its offer to Australiawide, which is contingent on the company buying Kendell and Hazelton by 25 June.
The Government will hand over a $5 million grant, air navigation charge exemptions for sub-15 tonne aircraft and three years' guaranteed access to slots at Sydney Kingsford Smith airport now held by the two regional airlines.
"Following extensive discussions with administrators and the preferred bidder, Australiawide Airlines, I have now agreed to provide [this] financial and regulatory assistance in the interests of regional Australia, the travelling public and those many hundreds of people still employed with Kendell and Hazelton," he said in a statement.
"I would urge the parties to make the most of this generous offer and conclude the sale as quickly as possible," he said.
Australiawide has reportedly been unable to guarantee the sale will proceed despite the Government's offers.
AAP
Gaunty. I too would dearly love to see Kendell and Hazelton re-established as successful Australian rural airlines, retaining their dedicated and experienced staff. However, one must have grave concern at "Strolling adventurers of no fixed percentage" (to quote your good self) gaining short term control - with inevitable and disasterous medium or long term results.
The regional airline market is arguably the hardest industry in Australia to achieve success. And I speak from three decades of experience in regional airline management.
Apparently Australiawide made an announcement last night on the Sydney media (which I only have second hand), preempting a withdrawal from the deal due to being unable to strike a deal to acquire the existing aircraft. I believe the residual liability of the current aircraft may significantly exceed their market values.
As CASA seems to indicate it will transfer the AOCs, I would have thought a more rational approach would be to acquire the AOC and essential ground assets and if the aircraft are not available at realistic prices, acquire alternate aircraft leaving the original fleet with the Liquidator.
I wonder what will happen with their reported half mega buck deposit?
I would toast their success with a fine wine. It will be a sad day if Kendell and Hazeltons disappear from Australian regional and rural skies.
The regional airline market is arguably the hardest industry in Australia to achieve success. And I speak from three decades of experience in regional airline management.
Apparently Australiawide made an announcement last night on the Sydney media (which I only have second hand), preempting a withdrawal from the deal due to being unable to strike a deal to acquire the existing aircraft. I believe the residual liability of the current aircraft may significantly exceed their market values.
As CASA seems to indicate it will transfer the AOCs, I would have thought a more rational approach would be to acquire the AOC and essential ground assets and if the aircraft are not available at realistic prices, acquire alternate aircraft leaving the original fleet with the Liquidator.
I wonder what will happen with their reported half mega buck deposit?
I would toast their success with a fine wine. It will be a sad day if Kendell and Hazeltons disappear from Australian regional and rural skies.
As I hear it, the problems seem to be in the Kendell camp. The issues are W.T.H. to do about the CRJs and how to meet the cost of the retraining of the CRJ drivers onto SF340 as per their EBA. I can't see what all the fuss is about over retraining - it's not exactly been kept a well guarded secret that most CRJ drivers qualify for retraining onto the turbo props and any sensible business plan must allow for it.
The only way out seems to be a negotiated settlement with those involved or let Kendell die, then pick up what pieces they want. What happens to the AOC in this case? AFAP reports show the new owners (?) to be seriously draging their feet on the retraining issue, even walking out of a meeting rather than discuss it.
Hazo management is certainly stressed about it, they've been ready to go for weeks.
The only way out seems to be a negotiated settlement with those involved or let Kendell die, then pick up what pieces they want. What happens to the AOC in this case? AFAP reports show the new owners (?) to be seriously draging their feet on the retraining issue, even walking out of a meeting rather than discuss it.
Hazo management is certainly stressed about it, they've been ready to go for weeks.
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Well if that is the problem at least just start with Hazo's. I fail to see why some things are so stupidly difficult. It just never ceases to amaze me how many idiots think they can run an airline as they never actually know what they are doing. It is so simple yet they are so inept in this business. I work for the competition but I am so sad for the Ansett, Hazo and Kendell staff. Words cant go close to express my dismay for all that is happening.
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The issue of the actual aircraft isn't the problem. The issue is the resistance to the rightful (award condition) retraining of senior Kendell CRJ pilots back onto the SAAB possibly replacing more junior pilots.
This has been going on since Sept 14th and it's well overdue for the Administrators and AWA to stop trying to sweep it under the carpet.
This has been going on since Sept 14th and it's well overdue for the Administrators and AWA to stop trying to sweep it under the carpet.
In Kendell there was a superhuman effort to get the CRJ operation happening in little time, with stuff-all resources apart from some hardware. A lot of people in management and on the line busted their gut making it happen. Although the suitability of the aircraft for this country was questionable, the KD operation of the aircraft was sound, but relied on a fair bit on extra staff effort and some logistics support from AN. This along with a history of KD overcoming great logistical and financial odds through the years by staff effort seems to lead some of the same senior staff (many now off the CRJ) to feel they have built the company and earned a rightful place with a new buyer, and press the EBA into the face of a 'savoir'. This may be legally correct position but to press the issue is somewhat misguided, as the agreed parties have changed - the buyer did not agree on the EBA in the first place and may choose never agree. If the latter happens then the buyer still stands to win if the company falls over.
Any new buyer of this operation will only move if it stands to make money from day one - and not blows money unnecessarily. If Ozwide is forced to take up unwanted liabilities, it would seem logical for them to wait for collapse then pick out the assets of ZL /KD, employ who they want, and make their own EBA. Alternatively it could buy only ZL, leave KD to fall, then buy the desired extras. So IMHO the union push for the interests of 40 or so remaining pilots could precipitate a collapse and could place the livelihoods of 600 or so others on the line.
The union needs to switch on with a win-win and clever costing proposal, being diplomatic and fresh in their negotiation - quick smart. If this means contributing more that the EBA then so be it. The primary interest of the union reps right now should be the existence of their company. There needs to be a carrot offered – not a liability - for the buyer to take on the CRJ guys.
Any new buyer of this operation will only move if it stands to make money from day one - and not blows money unnecessarily. If Ozwide is forced to take up unwanted liabilities, it would seem logical for them to wait for collapse then pick out the assets of ZL /KD, employ who they want, and make their own EBA. Alternatively it could buy only ZL, leave KD to fall, then buy the desired extras. So IMHO the union push for the interests of 40 or so remaining pilots could precipitate a collapse and could place the livelihoods of 600 or so others on the line.
The union needs to switch on with a win-win and clever costing proposal, being diplomatic and fresh in their negotiation - quick smart. If this means contributing more that the EBA then so be it. The primary interest of the union reps right now should be the existence of their company. There needs to be a carrot offered – not a liability - for the buyer to take on the CRJ guys.
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Whilst I agree with most of the above I think you'll find that the retraining issue is a small one in the grand scheme of things. It's not the issue delaying the sale. Australiawide has a bigger problem negotiating the transfer of asset title.
Sims Lockwood have adopted a flexible approach in the sale of ZL - made all the easier by the fact that Hazelton aircraft are leased. KMC (of M&M fame) has a nasty habit of pulling three eyed rabbits out of their hat - made all the more difficult by the fact that the majority of Kendell aircraft are owned.
Sims Lockwood have adopted a flexible approach in the sale of ZL - made all the easier by the fact that Hazelton aircraft are leased. KMC (of M&M fame) has a nasty habit of pulling three eyed rabbits out of their hat - made all the more difficult by the fact that the majority of Kendell aircraft are owned.
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Agreed Roller Merlin, surely they would be happier to continue working for KD in the ground support positions they now have until a flying job comes up then bring the whole company down.