Melbourne businessmen Lindsay Fox and Solomon Lew must decide whether to go ahead with their planned take-over of Australian carrier Ansett after the Australian Government rejected many of the conditions set by their Tesna consortium.
Transport Minister John Anderson told Tesna last week that the government will not cover a A$195m ($101m) loan for workers' entitlements (Flight International, 27 November - 3 December 2001), nor provide other forms of support.
Tesna had sought a government commitment to pre-purchase tickets on the new airline. This was refused, but under new rules Tesna can compete for government travel contracts, which could be worth A$65 million per year if Tesna achieves 25% of the market, says Anderson.
The government has meanwhile removed airport ownership restrictions that would have blocked the bid because Fox's company Linfox is a joint owner of the firm that leases Essendon Airport near Melbourne's major airport. The Civil Aviation Safety Authority will be told to expedite Tesna's safety approvals, including its air operator's certificate.
Tesna will also have access to Ansett International's overseas traffic rights, including codeshares, provided the firm resumes commercial arrangements with Ansett's partner airlines. Japan has confirmed that Tesna can use Ansett's slots at Osaka and Tokyo Narita.
Anderson says the Government has protected enough Ansett slots at Sydney to meet Tesna's operating requirements without hampering other operators, and that conclusion of lease agreements at Ansett's Sydney domestic terminal, being negotiated when Ansett went into administration, will be expedited.
A bid by Virgin Blue for Ansett terminal facilities has been sidelined by administrators.
Source: Flight International
