Sharechat Logo

Air NZ agrees to sell Ansett flights

By Phil Boeyen, ShareChat Business News Editor

Tuesday 13th November 2001

Text too small?
Air New Zealand (NZSE: AIRVA) is rekindling its association with jettisoned airline Ansett this week after signing an agreement to sell services on the new discount carrier Ansett Mark II.

Ansett Mark II is being run as a low-cost airline and will only offer one class of cabin and no catering apart from water. In-flight entertainment is limited.

The reborn Ansett will initially fly between Melbourne, Sydney, Adelaide, Brisbane, Perth, and Hobart.

Wealthy Australian businessmen Solomon Lew and Lindsay Fox have set up a syndicate to run the new Ansett and have asked the Australian government for help to the tune of A$600 million in cash, subsidies and tax assistance.

Re-elected Australian Prime Minister, John Howard, has ruled out taking an equity stake in the airline but the Sydney Morning Herald reported he is keen to help out in some way.

The newspaper also says that Mr Howard wants the staff of the new airline to have "realistic" wages and work practices, citing the previous airline's overly-generous work conditions as part of the reason for its demise.

Air New Zealand dumped Ansett Australia in September as it fought for its own fiscal life, eventually receiving a $900 million tax-payer funded bail-out to stay in business.

In its 2001 accounts Air NZ wrote down its investment in Ansett by $1.32 billion.

NOTE: please be advised to read full articles from Business Desk Website, you will have to pay a subscription fee on their website.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Air NZ deputy warns against Qantas cash
Air NZ loses momentum in November
One Air NZ share by Christmas
Air NZ investors have little choice - report
Star Alliance pulls together
Wrightson chairman to steer Air NZ
Tourism body gets $2 million shot in the arm
Free flights cost more
More cash promised as Air NZ share price settled
Asia calls for Air NZ