With its takeover complete, Air New Zealand (ANZ) is ringing the changes at Ansett Australian Airlines. The first phase came in August with a purge of top management that saw most Ansett managers retiring or being replaced
ANZ plans to inject A$250 million ($142 million) into Ansett this year. Efforts will focus on regaining the business traveller market share that Ansett lost to Qantas Airways.
Three years ago, Ansett controlled almost 55% of that market. Now it has only about 42%. A further blow is ANZ Bank's announcement that instead of splitting its domestic travel 50-50 between Qantas and Ansett, it will give all that business to Qantas from October.
To boost its business travel, Ansett will increase frequencies in Australia's key business markets, and add amenities and services that cater to business travellers. Part of this emphasis is in recognition of Australia's new start-ups, which will make their mark mainly among leisure travellers.
Ansett and ANZ plan to open engine maintenance centres in Auckland and Melbourne in partnership with General Electric Engine Services. This follows other steps towards integration, involving aircraft maintenance, joint procurement, revenue management and the rationalisation of sales and distribution staffs. The two intend to rationalise their IT infrastructure, reducing the number of IT systems from 130 to 30. In addition, ANZ may transfer some overseas routes from Australia to Ansett International because of the latter's better brand identity. Ansett flights to the USA have also been mooted.
These initiatives follow a disappointing year for Ansett. Its parent reports a 28% decline in operating profit for the year ending 30 June. Ansett Australia's profits slumped 40.5% to A$96.7 million.
ANZ is to make an NZ$285 million ($123 million) rights issue in October to help pay for its Ansett takeover. Both 30% shareholder Brierley Investments and 25% shareholder Singapore Airlines say they will participate.
Source: Airline Business
