Print

Mail

wiki links

Government package helps Ansett to resume service

Ansett planes line the tarmac while a Qantas jet take off over head in Sydney, Australia yesterday. Ansett returned to the skies with the first flight since financial troubles grounded the airline last week. PHOTO: AP

Planes belonging to Australia's second-largest airline, Ansett, took to the skies yesterday after being grounded for nearly three weeks because of the carrier's spiraling debts.

First to leave was flight 713, an A320 flying from Sydney to Melbourne, which took off just after 9am in Sydney, beginning what the government hopes will be the resurrection of the 65-year-old airline.

Ansett crew formed a guard of honor for passengers, clapping and cheering as they entered Ansett's terminal at Sydney Airport.

Customer Services officer Ken Mochan welcomed passengers with a bugle call inside the departure hall and said it let the public know Ansett staff were keen to resume work.

"It gives the girls and boys a bit of pride," Mochan said.

The government package provides 13,000 seats on routes between most mainland state capitals and re-employs 1,600 Ansett staff -- about 10 percent of those who lost their jobs when Ansett collapsed Sept. 7.

Flights were only expected to operate yesterday between Sydney and Melbourne, Australia's two largest cities.

Prime Minister John Howard's government is guaranteeing Ansett tickets for 12 weeks to a total value of A$25 million (US$12.3 million) while administrators arrange for Ansett aircraft to resume domestic flights.

The opposition Labor Party has accused the government of providing a short-term patch to the airline that only guarantees flights until after a federal election expected in November.

Administrators now running the airline said Friday that more than 5,000 tickets had been sold on Ansett flights, injecting A$1 million (US$490,000) into the company's coffers.

However, administrator Mark Mentha said some flights to be operated will run at a loss, with as little as 30 percent capacity.

The collapse of Ansett left national flag carrier Qantas controlling more than 90 percent of the domestic aviation market and sparked soaring ticket prices with travel agents reporting it was cheaper to fly to Europe than to fly from Sydney on the East Coast to the West Coast city of Perth.
This story has been viewed 1874 times.