A National Extension Service for Australian Manufacturing Industry: A Report to the Australian Industry and Technology Council, Nicholas Clarke and Associates, Nicholas Clark and Associates, 1985, 0959013202, 9780959013207, . .

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Members of Aboriginal, Torres Strait Islander and Maori communities are advised that this catalogue contains names and images of deceased people. All users of the catalogue should also be aware that certain words, terms or descriptions may be culturally sensitive and may be considered inappropriate today, but may have reflected the author's/creator's attitude or that of the period in which they were written.

Ansett , or Ansett-ANA as it was commonly known in earlier years, was a major Australian airline group, based in , Victoria. The airline flew domestically within Australia and from the 1990s to destinations in Asia.[1] The airline was placed into administration in 2001 after suffering financial collapse, and subsequent organised liquidation in 2002, subject to deed of company arrangement.

The company was founded by in 1935 as Ansett Airways Pty Ltd. This was an offshoot of his road transport business which had become so successful it was threatening the freight and passenger revenue of Victorian Railways. This led the state government to legislate to put private road transport operators out of business. Reg Ansett countered by establishing an airline as aviation was under control of the federal government and beyond the reach of the state government.[2]

Ansett's first route between Hamilton, Victoria and Melbourne operated by a Universal monoplane commenced on 17 February 1936. The rapid success of the airline led Ansett to float the business in 1937. As the route network expanded, Ansett Airways imported Lockheed Electra aircraft. During World War II Reg Ansett opted to suspend all scheduled services, except the Hamilton service, in favour of more lucrative work for the United States Army Air Forces. After the war Ansett battled to re-establish his domestic routes using war-surplus Douglas DC-3s, converted from C-47s and the remaining L-10s.[2]

At this time, the Australian domestic airline travel sector was dominated by Australian National Airways (ANA), established in 1936 by a consortium of British-financed Australian shipowners. The Chifley Federal Government was determined to establish a state-owned airline to operate all domestic and international services. It was eventually thwarted in this aim by the , and so it established (TAA) to operate in competition with ANA.[2]

Ansett Airways remained a bit player as ANA and TAA battled for supremacy in the 1940s and 1950s. Ansett operated around the big two, maintaining budget fare interstate operations with DC-3s and later Convair CV-340s. The airline was backed up by extensive road transport operations, including Ansett Freight Express and Ansett Pioneer Coaches, as well as the Ansair coach building operation.

The Menzies government, while supporting TAA, because of the excellent dividends it paid to the government, wanted to avoid TAA having a monopoly on domestic services if ANA collapsed, as seemed likely. The only alternative, as it transpired, was for Ansett to buy the ANA operation. Ansett's bid had a number of financial supporters, most prominent of these being the Shell Oil Company. Douglas Aircraft Company was also concerned about ANA's demise, as TAA had ceased to be a customer for their aircraft. The ANA directors fiercely resisted this initially, but in October 1957 succumbed to Ansett's offer of £3.3 million for their airline. The new entity was called Ansett-ANA, the name it retained until 1 November 1968, when it became Ansett Airlines of Australia.[2]

Ansett-ANA's excellent profit record was, at least in part, courtesy of the Menzies government's Two Airlines Policy. The policy effectively blocked any other domestic interstate operators by way of a ban on importation of aircraft without a government licence. From 1957 until the 1980s, under the strict rules set down by the Two Airlines Policy, Ansett and TAA operated as virtual carbon copies of each other, operating the same aircraft at the same times, to the same destinations, at fares, which were identical (under strict Federal Government policy). If either airline wished to change their fares, they had to obtain Federal Government approval.[2]

Reg Ansett then set out to ensure no other competitors could rise up to challenge his airline. He took control of Adelaide based Guinea Airways (renamed Airlines of South Australia) and based (renamed Airlines of New South Wales). The takeover of Butler was achieved with covert support from the Menzies government and by Ansett engineering his employees' purchases of Butler shares (in a similar way as had just been attempted by Butler). He then flew the employees to a general meeting in Sydney and forced a vote in favour of selling out to Ansett.[2]

Following the takeover of ANA, Reg Ansett lobbied the government to block TAA's purchase of Sud Aviation Caravelle jet aircraft. He was concerned about his airline's ability to finance equivalent jet aircraft, and the major engineering leap required to go from an all-piston fleet direct to pure jet aircraft, TAA had been operating prop-jet Vickers Viscounts since 1954, and so had expertise in jet technology. Ansett was successful in convincing the government to authorize the importation of more Viscounts and the new Lockheed L-188 Electra. This action delayed the introduction of pure jet aircraft to Australian skies until 1964, when the Boeing 727–100 began flying.

Ansett lost control of the company to ' TNT and 's News Corporation in 1979, with Abeles taking operational control of the airline. The airline prospered in the 1980s, however a number of substantial investments performed badly, including a share in the US airline America West Airlines (which filed for bankruptcy, but survived) and its Hamilton Island resort (which went into receivership). Ansett also paid millions of dollars for the right to be official airline of the Sydney 2000 Olympics, an investment generally regarded as unwise. This destabilised the financial position of the company considerably.

Ansett expanded into New Zealand in 1987 through its subsidiary Ansett New Zealand after the Government of New Zealand opened its skies to the airline. After the Government of Australia reneged on an agreement to reciprocate, Air New Zealand tried to acquire a share of Qantas when it was floated in 1995, but was not allowed. Instead it bought a 50% stake in for A$540 million in 1996, though managerial control remained in the hands of News Corporation. Ansett Australia then had to divest itself of Ansett New Zealand to avoid creating a monopoly.[3]

The Australian government then changed the rules to allow foreign airlines to fly domestic routes[citation needed]. Competition from Qantas and a succession of start-up airlines (Impulse Airlines and Virgin Blue), top-heavy and substantially overpaid staff, an aging fleet and grounding of the Boeing 767 fleet due to maintenance irregularities left Ansett seriously short of cash, losing $1.3 million a day.[1]

Air New Zealand attempted to cut Ansett's costs while maintaining the same level of revenue. This did not work, as the cost cutting hurt Ansett. Additionally, Ansett's fleet had been allowed to deteriorate, a situation which came to a head with a partial grounding of its fleet during the Christmas 2000 season and a full grounding in Easter 2001. Ansett was thus unable to compete with the low cost carriers and Qantas, who were able to run at a loss on some routes, as they could not maintain revenue while cutting their costs, which included laying off staff.[citation needed]

A deal made in April 2001 for Ansett to purchase Virgin Blue was repudiated by Virgin chief Richard Branson in August,[5] and Singapore Airlines, which was initially blocked from buying Ansett, was also prevented from investing further in Air New Zealand/Ansett by the New Zealand government. It then declined to take up an earlier proposed deal to inject over $500 million into Air New Zealand and Ansett after talks collapsed.

Quickly running out of both lines of credit and options, Air New Zealand placed the Ansett group of companies into voluntary administration with PriceWaterhouseCoopers on 12 September 2001. In the early hours of 14 September, the administrator determined that Ansett was not viable to continue operations (primarily due to the apparent lack of any funds to cover fuel, catering or employee wages) and grounded the fleets of Ansett and its subsidiaries Hazelton Airlines, Kendell, Skywest and Aeropelican. Flights already in the air at the time the decision was made continued on to their destinations. Customers and employees had no warning of the stoppage in operations.

Everyone had been told in the days leading up to 14 September that flights would continue on schedule, and Ansett employees did not find out until they showed up for work at dawn that day. Thousands of passengers were left stranded and more than 16,000 people found themselves out of a job, making this the largest mass job loss event in Australian history.[1] Widespread protests were held by workers, including the blockade of an Air New Zealand plane about to carry New Zealand's Prime Minister Helen Clark home from Melbourne.[7]

It was alleged by the then administrators that Air New Zealand had engaged in asset stripping of the airline as well as charging of its fuel costs due to Air New Zealand failing to hedge its fuel costs thus leaving it susceptible to major fluctuations in fuel charges during 2000.[8][9] This claim was strongly denied by Air New Zealand, noting it had funded Ansett's loss of A$180 million in the last year, and Ansett's administrators soon admitted there was no evidence of any asset stripping.[10]

After receiving a federal government guarantee, Ansett resumed limited services between major cities on 1 October 2001, utilising only the Airbus A320 fleet. This was referred to as Ansett Mark II, an operation run and financed by Ansett Australia under administration. The purpose of getting Ansett back into the air was aimed directly at attracting a buyer for the business and generating positive cash flow. Attempts by Ansett's Voluntary Administrators to re-engage Singapore Airlines to consider a role in resurrecting Ansett through a meeting on 6 October 2001 resulted in it agreeing to play a consultancy role in this effort.[11][12] The scaled-back operation ran on a tight budget, and its product reflective of that.

It consisted of single class seating with no catering, interlining baggage, valet parking or frequent flyer points. After a month back in the air, the Golden Wing Club Lounges re-opened, however like the scaled-back flying operation, provided no refreshments or other amenities apart from coffee and water. Ansett essentially was in "lock down" mode, while the administrators tried to source buyers in a very challenging market. Ansett Mark II traded only as "Ansett" (minus the Australia) in a different font to separate it from the former operation. It traded from Ansett terminals, with Ansett ground staff, crew and baggage handlers working around the clock to make it a success with limited resources. Designated gates at each of Ansett's terminals were used for the operation, while aircraft not being utilised were moved away to more distant gates, with the disused concourses being sealed off.

In November 2001, Ansett creditors voted to allow the Tesna consortium, led by Melbourne businessmen Solomon Lew and Lindsay Fox, to purchase Ansett's mainline assets. The plan involved creating a whole "new" Ansett out of the ashes of the old (with the "Australia" dropped from the name as per Ansett Mark II), but the trademark font and "Star Mark" logo re-instated. It would be a full-service, two-class single-fleet-type domestic airline. It included very reduced staff numbers and an all new Airbus A320 fleet. The new Ansett would operate out of the old Ansett terminals, and temporarily lease the former Ansett's A320 fleet until younger replacements arrived. Loyalty products such as the Golden Wing Club and Frequent Flyer program would be relaunched.

Those members of Golden Wing Club at the time of the collapse would have their memberships re-instated for a six-month period if they used the new Ansett. A new CEO was sourced and hired, and began to put together a new management team. A new head office was planned, and Airbus showcased a new A320 to the consortium. A new catering company was selected, with new Business and Economy Class in-flight meals trialed on passengers on select Mark II services in readiness for the new operation.

The agreement with Ansett's administrators, although well-advanced, collapsed in late February 2002. Without any prior warning, the administrators announced on 27 February that Fox and Lew had withdrawn their bid, citing "Inability to complete the transaction on legal advice". A subsequent press conference with Fox and Lew the same day announced that they had received no support from the government for their bid, thus withdrawing their proposal.

With no other saviours, and any chance for Ansett as an airline to be revived now gone, the administrators had no choice but to cease all Ansett flying operations at 23:59 on 4 March 2002, with the very last commercial flight, AN152 from Perth to Sydney, operated by A320-211 VH-HYI,[13] touching down a little after 06:00 on 5 March. Staff filled Golden Wing Lounges across the country for mass wakes as the final flights came into land.

By this point, the administration of the company had transferred to newly formed insolvency firm KordaMentha. The Australian Securities and Investment Commission (ASIC) began an investigation of whether Ansett had traded while insolvent, and eventually determined in July 2002 that it would be too expensive and difficult to proceed with an action which would in any case, need to be many separate actions on behalf of individual creditors rather than just one.

With Ansett now grounded again, the administrators began selling off Ansett's assets. This included its regional subsidiary airlines, which still continued to trade despite Ansett being grounded. A creditors meeting post March 2002 voted in favour of an organised wind-up of the operation, under a deed of company arrangement, as opposed to an immediate liquidation. It was viewed that a deed of arrangement would give creditors a greater return than liquidation would provide.

Laid-off Ansett workers were eventually paid most of their entitlements, partly from an A$150 million compensation package offered by Air New Zealand in return for having the ASIC inquiry dropped, but mostly through asset sales and leasing revenue. The Federal Government did provide a A$350 million loan which is being repaid by the Administrators at the same time as the staff are being repaid however, to ensure that there is no exposure to taxpayers, a A$10 per seat levy was imposed by the Federal Government on Australian airline passengers. Employees ended up receiving 96% of their entitlements.[14]

Ansett's administrators, KordaMentha, initially advised creditors that it was unlikely that much more money would be realised, due to the depression of the global aviation industry after 11 September reducing the value of aircraft from A$300 million to A$70 million. In the months following the final flight, the administrators negotiated the sale of the terminal leases back to the airport owners, recouping millions. Auctions were held to sell Ansett's airport furniture and equipment. Its headquarters at 465/489 and 501 Swanston Street, Melbourne were sold to PDG Corporation. Some aircraft stored in heavy maintenance were broken up, as it was not cost-effective to restore them to an airworthy state.

The disposal of the former fleet did not progress quickly, given the depressed aviation market and the subsequent lack of demand by other carriers around the world whose operations had been crippled by the 9/11 attacks only months before. Following the final flight, nearly all of the A320 fleet was ferried back empty to Melbourne, where they sat at abandoned gates in storage. The Airbus A320 and Boeing 737 fleets ultimately found new owners first, and departed Australia between March 2002 and December 2006 as the banks finally reclaimed them, or as new owners were found.

The two Boeing 747s that were leased from Singapore Airlines were reclaimed within weeks of the collapse and returned to Singapore Airlines, where they were repainted back into the colours of their owner. They subsequently found new lives are now leased to Fiji's national carrier Air Pacific. The more modern Boeing 767–300, of which Ansett had two, were reclaimed by the lessors in the following months, while two new Boeing 767–300 aircraft which arrived too late to enter service with Ansett, departed soon after. One aircraft was wet leased on a short term basis by Qantas to bring additional aircraft to cover the loss of Ansett, but the aircraft retained its Ansett registration while under lease to them. Another new 767-300 which was halfway through its ferry from Canada never made it to Australia and returned to Canada. The Kendell CRJ-200 jets departed back from Canada within twelve months of the initial collapse. http://kgarch.org/ceb.pdf http://kgarch.org/6a2.pdf http://kgarch.org/8i8.pdf http://kgarch.org/bml.pdf http://kgarch.org/52d.pdf http://kgarch.org/26e.pdf http://kgarch.org/bm9.pdf http://kgarch.org/5m.pdf http://kgarch.org/92l.pdf