Re: [Sky-1] Ansett jibe from NZ Prime Minister

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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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