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The rise and fall of ansett australia.
Today, two major players dominate Australia’s aviation market. But, before the era of Qantas vs Virgin Australia, there was another major carrier in the game too. Ansett Australia was once one of the most significant carriers in Australia and the Pacific. Now defunct, they remain as a memory of aviation’s past. Let’s take a look at the rise and fall of Ansett Australia.
The early history of Ansett
Ansett Australia’s early days are mostly remembered from the time they acquired ANA - Australian National Airways. At the time, this made Ansett Australia’s largest carrier and soon they were on their way to prosperity. In the early days of turboprops, it wasn’t uncommon for ridiculously long travel times and unreliable engines. Then, in the 1960s, Ansett introduced the Boeing 727 and DC-9s. The era of turboprops had ended in favor of the jet age. These new jet aircraft made air travel more stable and reliable.
Ansett survived well into the 1990s. Then, things started to fall apart. Prior to the early 90s, Australia's aviation market was heavily regulated by the government. The two-airline policy which granted only two airlines to operate flights on most routes ensured that Ansett Australia would be a significant force.
The Trans-Australia Airlines Museum provides an excellent timeline of Ansett's early history.
Ansett in the 1990s
By the 1990s, Ansett was operating comparatively modern aircraft. This included Boeing 737 Classic series aircraft , Boeing 767s , and Airbus A320s . In 1990, Australian airline deregulation occurred. After this, Ansett made some severely consequential decisions. One one hand, Ansett launched Australia's first frequent flyer program and began their own international flights . Meanwhile, Ansett lobbied heavily to become the official airline for the 2000 Olympic Games in Sydney.
Ansett also launched a co-branded credit card and became a member of Star Alliance . Essentially, Ansett was doing everything major airlines do today in an effort to boost loyalty, passenger numbers, and profits. Many airlines from Delta Air Lines to British Airways have taken similar actions which ended up well for them. So, where did Ansett go wrong?
Air New Zealand steps in
In 1996, Air New Zealand purchased a 50% stake in Ansett Australia. Outside airlines typically invest in foreign carriers as a way to build up alliances and profits. This has is also something common in today's world. For some airlines, like Qatar , this works. For others, like Etihad , it fails.
Air New Zealand wanted a piece of Australia's aviation market. This is understandable since the ties between New Zealand and Australia run deep. As a result, Air New Zealand, with an Ansett partnership, could essentially funnel passengers from far-reaching destinations to Australia and vice versa through New Zealand. Ansett itself did not operate a significant number of long-haul international routes . Thus, they were a perfect target for Air New Zealand.
Then, in 2000, Air New Zealand beat out Singapore Airlines ' offer and fully acquired Ansett Australia at a tune of A$680 million. In an interview with the Australian , former Ansett Australia executive Rod Eddington said,
"Air New Zealand trumped the $500 million Singapore Airlines bid, putting up $680m for half of Ansett. Air New Zealand didn't have the balance sheet to support Ansett."
Ansett fleet issues
On the road to collapse, Ansett Australia started to have fleet problems. First off, Ansett's fleet was complicated and varied. Ansett operated aircraft as wide and diverse as the A320 ...
...to the 737 ...
...to the Fokker 27
...to 747s and 767s too. Unfortunately, this meant that Ansett was running a complicated array of aircraft that cost a lot to maintain. Airlines prefer fleet simplification in place of diversification. In addition, Ansett also ran into problems with their 767s.
Ansett's 767 problems
Through 2000 and 2001, most of Ansett's 767 fleet was grounded due to ongoing maintenance issues. The 767s highlighted the problem with Ansett's fleet: it was old. However, the airline was losing a lot of money. Reporting by The Guardian in the days after Ansett's collapse indicate Ansett was losing as much as $1.3 million per day .
Competitors
At the same time that Ansett struggled, competitors started to encroach on the airline's dominance. On the full-service side, Qantas was a major force , and would soon become the premier airline of Australia. Virgin Blue, now known as Virgin Australia , was one of the first new competitors to emerge in 2000 as a low-cost carrier. After Ansett's collapse, Virgin Australia grew enormously and emerged as Qantas' leading competitor.
Air New Zealand couldn't sustain Ansett Australia. They themselves had to receive government support in order to stay afloat. This came with a hefty price to pay: letting Ansett collapse. Air New Zealand placed Ansett Australia into administration and the Australian government refused to bail out the failing airline. It was determined that Ansett could no longer be a sustainable business, and, on September 14th, 2001, the airline ceased operations.
Ansett briefly returned to the sky with a small fleet and simple operations. However, this resurrection soon came to end due to a lack of sufficient financing and heavyweight support in early 2002.
Ansett's aircraft were returned to lessors and found new homes. Some of their 747s ended up with Air Pacific which later became Fiji Airways . Other aircraft were scrapped .
The post-Ansett world
Ansett's collapse allowed a new competitor to emerge against Qantas: Virgin Australia. And, ten years after Ansett's collapse, CAPA released a report indicating that, despite Ansett's collapse, Australia's aviation industry continued to grow. Although some growth slowed as a result of the 9/11 attacks , the market bounced back and continued to grow.
Ansett's collapse was felt across Australia. Thousands of people lost their jobs. Blame went around from the Australian government to Air New Zealand. Ultimately, even if Ansett had survived beyond 2001, they would have faced a difficult future. With the world rattled by 9/11, the struggling carrier likely wouldn't have fared well against other, more stable carriers. Furthermore, had Air New Zealand continued to invest in Ansett, it is likely that both airlines would have collapsed leaving a major void in the South Pacific aviation market.
Today, Ansett lives on as a memory. Having ceased operations less than 20 years ago, a fair number of Australians and avgeeks still have fond memories of the airline. Now, after Ansett's demise, Australian aviation has turned a page and found a new competitive market between Virgin Australia and Qantas. This competition led to both carriers establishing low-cost carriers which, overall, have lowered airfares and increased passenger numbers in Australia.
Have you flown Ansett Australia? Do you miss Ansett Australia? Let us know in the comments!
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Ansett Australia
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Ansett Australia was a major Australian airline group, based in Melbourne, Victoria.The airline flew domestically within Australia and from the 1990s to destinations in Asia. After operating for 65 years, the airline was placed into administration in 2001 following a financial collapse and subsequent organised liquidation in 2002, subject to deed of company arrangement.
Welcome to www.ansett.com.au, previously the Ansett Australia Pty Ltd company web site and airline booking facility. Flights operated by the Ansett Australia Group ceased from midnight on Monday 4 March, 2002. This site now provides information regarding the Ansett Australia Group administration. The appointed administrators (under Deed of ...
About Ansett Australia. Ansett Australia was an Australian airline that flew passenger flights between 1936-2002. The airline was one of the major and longest-serving airlines in Australia. ... The Economy Class cabin was designed for people that wanted to travel from one destination to another and weren't bothered about the luxury facilities ...
After the Second World War, the airline was able to expand its fleet by converting surplus Douglas C-47 aircraft to passenger-carrying DC-3s. In 1957, Ansett acquired Australian National Airways, and was known as Ansett-ANA until 1968. After this, it was renamed Ansett Airlines of Australia, and became known by the shortened 'Ansett Australia.'
Ansett Australia Travel Agency. September 9, 2021 · Well we are getting ready to re open as soon as the international borders are open. Great news hopefully it will be sooner rather than later. Let's hope we can travel in the near future.
Ansett Australia Travel Agency, Adelaide, South Australia. 307 likes. Ansett Australia Travel is a small business who intends to bring fairness and a great booking experience to the people south of...
These new jet aircraft made air travel more stable and reliable. Ansett Australia introduced the Boeing 727 starting in the 1970s. Photo: Kym Manuel via Flickr ... Air New Zealand placed Ansett Australia into administration and the Australian government refused to bail out the failing airline. It was determined that Ansett could no longer be a ...
20 years ago, in March 2002, Ansett flew their passengers around Australia for the last time. After operating in the air since 1936, the airline had been placed into administration following a ...
Ansett Australia Travel Agency · June 21, 2021 · June 21, 2021 ·
There are thousands of great Australian experiences to choose from. Chances are, your Aussie Specialist Travel Agent has experienced or planned for them before. Experts on everything Australian, these specialists receive extensive training from Tourism Australia and most have travelled throughout Australia. They have the experience to help you ...
Howdy! :DVenturing back to the Southern Continent, we take a look at what was once Australia's largest airline, Ansett Australia, a testament to both the inc...
I started my travel life way back with Ansett as an air hostess then in Ansett Reservations. This led to consulting in one of the first agencies in Australia to use a computer reservations system, the Qantas system at the time Qantam, and in following years systems of many different airlines.
ansett's agency had 10% of the corporate travel market, qantas has 15% - and new government contracts are its chance to grab much more.
You could be the first review for Ansett Australia. Filter by rating. Search reviews. Search reviews. Phone number (07) 3854 2828. Get Directions. 733 Ann St Fortitude Valley Queensland 4006 Australia. Suggest an edit. Near Me. Travel Agencies Near Me. Other Travel Agents Nearby. Find more Travel Agents near Ansett Australia. Related Cost ...
Ansett Australia (IATA: AN / ICAO: AAA) was an airline headquartered in Melbourne, Australia operating from 1991 to 2002
But Compass director Ron Walker says Ansett and Australian Airlines had much better coverage of travel agencies than Compass. Ansett and Australian control several hundred travel agency outlets in ...
At that time, the Australian domestic airline travel sector was dominated by Australian National Airways (A.N.A.), which was established in 1936 by a consortium of British-financed Australian shipowners. ... Ansett Australia then had to divest itself of Ansett New Zealand to avoid creating a monopoly. Ansett commenced international service on ...
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Ansett Australia was a major Australian airline group, based in Melbourne, Victoria. The airline flew domestically within Australia and from the 1990s to destinations in Asia. After operating for 65 years, the airline was placed into administration in 2001 following a financial collapse and subsequent organised liquidation in 2002, subject to deed of company arrangement.
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