Saying AN was in trouble long before NZ bought it may be true. But the = comparison is a bit like saying AN were caught J walking long before NZ = put an axe through their head. ----- Original Message -----=20 From: Grant McKenzie=20 To: Skyone@yahoogroups.com ; AIRLINE@LISTSERV.CUNY.EDU=20 Sent: Wednesday, March 06, 2002 7:32 PM Subject: Re: [Sky-1] Ansett jibe from NZ Prime Minister Actually, I completely agree with her first sentence. Ansett was in=20 trouble long before Air NZ bought it. However, to imply that Air NZ = is=20 totally blameless is ridiculous, their appalling mismanagement, shonky = accounting practices and asset stripping certainly helped contribute = to=20 Ansetts demise. Frankly IMHO, the decision of Air NZ to buy the=20 remaining 50% of Ansett and prevent SQ from doing so would have to be=20 one of the stupidest corporate decisions I've ever seen, second only = to=20 the decision by the NZ government to spend NZ$1.1 billion of taxpayers = money bailing Air NZ out. I'm glad I'm not a Kiwi taxpayer. Air NZ=20 should have been left to go to the wall as market forces dictate. = It's=20 all a poorly run company deserves. Grant SYD QF RAY MARSH wrote: > >From the Australian Financial Review... > http://afr.com/ >=20 > Furore over Clark's Ansett 'lemon' jibe > Mar 6 > Jane Boyle >=20 >=20 > The Prime Minister of New Zealand, Ms Helen Clark, who played a key > role in Ansett's collapse, yesterday labelled the airline a "lemon", > sparking fury from the airline's staff and unions. >=20 > As Ansett employees wandered home from wakes after the airline was > grounded by administrators, Ms Clark said Ansett had been a headache > for Air New Zealand, which placed it in administration six months = ago. >=20 > Her inflammatory comments came as the ACTU said it hoped that sacked > Ansett staff would be paid about half the total $730 million owed in > entitlements within two months. >=20 > The remarks stunned the industry, given the New Zealand Government = has > been forced to pump NZ$885 million ($726 million) into Air New = Zealand > to prevent it from collapsing under a mountain of debt. >=20 > "I think Ansett was an airline with quite considerable problems = which > Air New Zealand foolishly bought into lock, stock and barrel without > any due diligence in order to keep Singapore Airlines out," Ms Clark > said. >=20 >=20 > "Air New Zealand then, with pass-the-parcel, ended up with the > headache, and it got out and obviously the subsequent attempts to > revive Ansett haven't worked either." >=20 > Union leaders were outraged at the comments. ACTU secretary Mr Greg > Combet retorted: "If it's a lemon, she's had to suck on it just like = a > few other people." >=20 > The ACTU is now considering suing Tesna for ditching its $3 billion > rescue plan for Ansett and has asked its lawyers to advise on legal > options. >=20 > Australian Services Union branch secretary Ms Julie Bignell said Ms > Clark's comments were "offensive, insulting, poorly timed and dead > wrong". >=20 > "Ansett failed because it was poorly managed and its management for > the most part was Air New Zealand," Ms Bignell said. >=20 > Ms Clark's Government and the Australian Government have been key > targets for blame over Ansett's demise, after delaying approval of = Air > New Zealand's plan to recapitalise the airline last year through a = $1 > billion capital injection from Singapore Airlines. >=20 > After Ansett collapsed, Ms Clark was party to a $150 million payment > by Air NZ to Ansett's administrators to avoid further legal action > against the NZ carrier. >=20 > Ms Clark was again embroiled in controversy when she caused chaos in > the trading in Air NZ shares soon after Ansett was cast adrift by > advising investors to hold on to the shares, forcing a trading halt. >=20 > She was subsequently forced to renationalise the carrier, diluting > minority shareholders (excluding Singapore Airlines and Brierley > Investments) to 7.6 per cent. >=20 > After writing off Ansett's entire value last year, Air NZ is still > racking up losses and is expected to post a loss of about $100 = million > for the December half on Thursday. >=20 > Air NZ now faces a siege by Qantas Airways, which is eager to buy a > stake in Air NZ and has indicated that unless it is able to do so, = it > will ramp up its NZ operations in competition with the NZ carrier. >=20 > Meanwhile, Queensland Premier Mr Peter Beattie said yesterday that > while he was sad at Ansett's demise, his Government would now focus = on > supporting Virgin Blue's expansion. >=20 > "What we have to do is to make the best of where we are and that's = why > we will be doing everything we can to encourage Virgin Blue to > expand," he said. >=20 > Ansett's administrators have begun discussions with Virgin Blue, > Patrick Corporation, Singapore Airlines and Qantas Airways among = other > potential buyers of Ansett's assets. >=20 > The chief executive of Qantas, Mr Geoff Dixon, told staff in a memo > yesterday that Qantas would give preference to former Ansett workers > when recruiting. >=20 > "We have already employed 600 Ansett workers. Another 400 are in the > process of being recruited into a variety of roles," he said. >=20 > However, he warned that Qantas could not afford to slacken off > restructuring and cost cutting to make its cost base competitive = with > Virgin Blue's, which is 30-40 per cent lower. >=20 > He said the airline's international operations were still under > "extreme pressure" and Qantas had to fund a $7 billion fleet = expansion > program over the next three years. "Meeting these commitments will = be > a major challenge," he said. >=20 > But he said Qantas's 85 per cent market share brought new > responsibilities. "We must not show any signs of arrogance and I = would > ask that we all redouble our efforts to provide outstanding customer > service to all our customers." 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