Ansett has agreed to conditions imposed by the Australian Competition and Consumer Commission (ACCC), allowing it to complete the takeover of regional carrier, Hazelton Airlines.
The deal came after a bidding war for Hazelton between Ansett and Qantas that ended only after Qantas withdrew in frustration because the ACCC refused to approve a takeover. The ACCC withheld its consent because it feared that if either airline acquired Hazelton, it could use the carrier's slots at congested Sydney airport for its own flights and thereby gain an unfair advantage.
Ansett stayed in the hunt after Qantas dropped out and has reached an accord with the ACCC on the critical slot issue. Ansett has agreed to limit the shifting of Hazelton slots to itself, and to impose price controls on certain routes. Ansett also relented on the issue that most concerned the ACCC - making slots available to any new regional carrier that may decide to fly between Sydney and smaller communities within the state of New South Wales.
Ansett will surrender up to 80 slots a week to such entrants. If these are not taken within a certain time, Ansett must surrender a number of them - not yet disclosed - to a pool for re-allocation by Sydney's slot co-ordinator. Finally, Ansett will give any new regional carrier wanting to enter Sydney up to 30% of Hazelton's slots between 0700 and 0900. Currently, there are no available slots during that morning peak.
"The ability of new players to access slots during this period represents a substantial barrier to entering regional markets," explains Professor Allan Fels, ACCC chairman. He says Ansett's acceptance of this term was "fundamental to satisfying the ACCC's concerns".
This accord has cleared the way for Ansett to complete its purchase of the largest independent regional left in Australia. When the dust finally settles after this eight-month battle, there will be little obvious change - Hazelton and Ansett already have an extensive alliance. Hazelton, which would have been merged with Impluse if that deal had come off, will still operate in its own name. Ansett's takeover was sparked by defensive concerns - originally to thwart bids for Hazelton from Impulse and then Qantas. Ansett can take credit for mounting a successful defence.
Source: Airline Business
