Ansett Set for U.S. in New Year, Lucrative Expansion for Owners

World Airline News, Oct 6, 2000

Ansett International is set to establish itself in the United States early next year, according to comments made by CEO Sir Selwyn Cushing this week.

The move is seen as an attempt by Ansett owners Air New Zealand (Air NZ) and Singapore Airlines (SIA) to improve the Australian brand's value and to supplement the expansion of the Australasian giants onto the global stage.

It is understood that Ansett International's presence, already set for growth in Hong Kong, will be expanded into Europe should the U.S. effort prove fruitful. However, insiders say that Air NZ, SIA and Star Alliance partner United Airlines [UAL] will retain the backbone of route control over the Pacific as the alliance evolves into the world's airline powerhouse.

The news came after last week's three-day Air New Zealand board meeting, the first time the Singaporeans were able to flex their new-found muscle on the New Zealand airline's board. "The decisions have been made to develop Ansett International and we are already commencing a new service, four times a week, to Hong Kong from Melbourne, and the decisions were made to take the Ansett brand to the USA at the commencement of the next calendar year," said Sir Selwyn during an interview Oct. 1 with Australian television station Channel 9. "It means that we will be looking at more destinations in the USA. We will be working along with our Star Alliance partners, obviously Singapore Airlines and United and Lufthansa, because with those particular companies we have forged very close relationships and that has given us a wonderful advantage."

"Now that we, Air New Zealand, are in Australia in a large way through Ansett, this provides something which will be seamless, a much better service and a much more effective link around the world and that will actually be much better than Qantas, who are in the oneworld alliance, which is nowhere near as big or as successful as Star Alliance," added the airline's chief.

But there are already doubts over the real intention behind the move to expand Ansett's international reach. Commentators point to the strong smell of empire building at SIA, adding that distracting public attention to international expansion (of what is effectively one of its subsidiaries) will give the carrier needed time to leverage its position with both New Zealand and Australian governments to increase its holding in Ansett's parent company from 25 percent to 40 percent.

"The move (to broaden Ansett International's network) is setting the foundation for Singapore Airlines' expansion," said Centre for Asia Pacific Aviation's Ian Thomas. "Now that it has cemented its domestic base - Australasia - SIA is now in a position to move forward with its plans to become a truly global airline.

"With the (Ansett) move we see the group strengthen its Pacific base," he said.

But Thomas had another point. "Once SIA establishes a trans-Atlantic route we will have to see how long SIA will remain within the Star Alliance." (WAN Aug. 18, 2000)

New C.E.O. for Air NZ - Ansett group

On Sept. 13, Ansett put to rest the debate over who would succeed Rod Eddington as overall chief of Ansett Holdings. This is how new CEO Gary Toomey was introduced.

"The Air New Zealand - Ansett Group has appointed Gary Toomey as its Chief Executive Officer, Air New Zealand Limited's Executive Chairman, Sir Selwyn Cushing announced today.

Prior to accepting the appointment, Toomey had just relinquished the positions of Deputy Chief Executive and Executive Director at Qantas Airways Limited and as a director of various Qantas subsidiary companies and Air Pacific Limited.

"We are delighted to have secured an executive of Mr Toomey's calibre to lead our newly-integrated Australasian group as we start developing its full capability as a world top 20 airline business," Sir Selwyn said.

"I have had the opportunity to observe his skill during the time he served as an alternate director on the Board of Air New Zealand, when Qantas was a shareholder in our company, and, more recently, from a distance as a business competitor. He impressed me on both counts," Sir Selwyn added.

Toomey will take up his chief executive's responsibilities with the Air New Zealand - Ansett Australia Group in December.

"The challenge of moving to a lead role in a significant airline business that's got its roots in Australia and New Zealand and is determined to grow its international competitiveness was irresistible," Toomey said.

"I'm grateful to my colleagues at Qantas for their support over the last seven years and pleased at our record of achievement together. However, I'm now looking forward to the fresh challenges ahead," he said.

Toomey is aged 45, married with one child, has a Bachelor of Commerce degree from the University of Melbourne. Following his graduation in 1975, Toomey joined chartered accountants Peat Marwick Mitchell and Co. and three years later moved to Parkhill, Lithgow & Gibson. From 1981, he held executive positions in a number of Australian companies including the Phosphate Co- Operative Company of Australia, Arnotts Biscuits Limited, and Australian Airlines.