Paul Lewis/SINGAPORE
Cathay Pacific Airways managing director Rod Eddington has been named as the new executive chairman at Ansett Australia, charged with seeing through a major shake-up at the loss-making carrier.
The announcement, which comes in the wake of the Air New Zealand (ANZ) acquisition of a 50% share in Ansett, has been welcomed by financial analysts, who are looking to Eddington to boost the airline's flagging morale and financial performance.
The Australian will leave Cathay Pacific at the end of November and take up his new post early in January, replacing Ken Cowley. Eddington will be employed by News Corporation, which owns the remainder of Ansett, under a five-year contract.
"Eddington will bring a lot to the table. He will instill a sense of purpose which has been lacking over the last six months, since Graeme McMahon left," says one industry analyst.
The immediate priority will be to revive the airline's ailing financial fortunes.
Analysts estimate that Ansett lost up to A$10 million ($8 million) over the latest financial year to the end of June, with a further A$20 million loss in the September quarter. Cowley had promised that the domestic and international carrier will reach break-even this year.
As part of the ANZ deal, the airline has already received $A200 million which will be used to reduce debt. Ansett hopes to further benefit from a commercial alliance with its new partner. A code-sharing deal will open up 300 weekly flights on 17 major Ansett routes to ANZ traffic.
There are also longer-term plans to extend co-operation to Trans-Tasman services, taking advantage of the chances opened up by the newly established A$5 billion single air market between New Zealand and Australia across the Tasman Sea.
Source: Flight International
