Ansett postpones aircraft purchase due to future ownership uncertainty - Brief Article

Airline Industry Information, Jan 6, 2000

AIRLINE INDUSTRY INFORMATION-(C)1997-2000 M2 COMMUNICATIONS LTD

Plans to purchase new aircraft have apparently been postponed by Ansett Australia due to uncertainty about the carrier`s future ownership.

Ansett was due to make a recommendation about fleet renewal to its board in December 1999, however none was made and so far no new deadline has been announced. The carrier is apparently still looking at options for fleet renewal and a spokesperson said a decision would have to be made within the next two years, since the programme was part of a three-year business recover plan that had only run one year.

According to analysts, the issue of ownership has stalled the fleet restructuring because Ansett had apparently hoped to secure capital from Singapore Airlines Ltd (SIA), but this was thwarted when Air New Zealand exercised its preemptive right to prevent SIA from purchasing News Corp Ltd`s 50% stake in Ansett during June 1999.

((Comments on this story may be sent to aii.feedback@m2.com))