Ansett collapse: 15 years since major Australian airline failed
ANSETT once flew high as one of our favourite airlines. Then 15 years ago it all went horribly wrong and collapsed, costing jobs and changing aviation in Australia forever. We look back.
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IT’S BEEN 15 years since Ansett stopped operation following the collapse of one of Australia’s biggest airlines.
And wow, have things changed.
You can now fly from Melbourne to Sydney for as little as $69 on a good day - compared to double that in the late 1990s.
And while the costs were higher you didn’t have to pay extra for luggage or booking a seat online.
SIR REGINALD ANSETT: FROM MT ELIZA TO THE WORLD
Low cost carriers have taken over the market, with Virgin, Jetstar and Tiger all vying for your business and Ansett’s former adversary Qantas seen as the premium, corporate carrier.
But before its demise, Ansett was one of the country’s favourite airlines.
I remember flying with Ansett when I was quite young because my aunty was an air hostess for them.
It used to be great because she’d organise special meals and colouring books for us even if she wasn’t on the flight.
When I was slightly older I remember getting warm scones with jam and cream and thinking it was such a treat.
But it wasn’t to continue. The company wound up in 2002.
But to understand where it ended up, you need to understand how Ansett began.
An offshoot of a successful road transport company, Ansett Airways was incorporated in Victoria as a public company in 1937 by Reginald Ansett and had services to Sydney, Broken Hill and Adelaide from Melbourne.
Before that Ansett’s first route was between Hamilton, in western Victoria, and Melbourne under a freight licence.
Mr Ansett wasn’t allowed to carry passengers, so sold each passenger an orange for 2 pounds, and claimed they were carrying freight when they arrived.
A licence to carry passengers was later provided.
Mr Ansett decided to suspend all scheduled services during World War II in favour for more lucrative work for the USA Air Force.
As part of those efforts, Ansett planes assisted in the evacuation of Darwin after it was bombed in 1942.
Once the war was over, he worked hard to resume his place as a commercial carrier which was helped by new planes he paid for with the money made during the war.
Ansett even began developing holiday resorts in the Whitsundays in 1947.
Always there in times of need, the airline again helped evacuate Darwin after Cyclone Tracy in 1974.
By 1969, Ansett had achieved the status of Australia’s largest domestic airline.
A decade later, control of Ansett was passed to News Corp and TNT.
Not happy with the title of Australia’s largest domestic airline, Ansett said its sights internationally, operating its first flight to Bali on September 11, 1993.
Routes to Osaka, Hong Kong, Jakarta, Shanghai, Seoul, Taipei and Kuala Lumpur closely followed.
Ansett expanded into New Zealand in 1987 after the New Zealand government opened its skies to the airline.
But when Australia reneged on an agreement to reciprocate, Air New Zealand bought a 50 per cent stake in Ansett Australia in 1996.
It purchased the remaining 50 per cent in June, 2000.
But facing cashflow and liquidity problems, Ansett Australia was placed into voluntary administration in September, 2001.
Ansett resumed limited services between major cities the next month after receiving a federal government guarantee and was almost saved by the Tensa consortium, led by Melbourne businessmen Solomon Lew and Lindsay Fox.
But their proposal was withdrawn after they received no support from the government for their bid.
Because of this the company was wound up and administrators were appointed to finalise all matters on March 4, 2002.
What are your memories of Ansett? What would it look like today if it survived?
Share your memories and opinions below.