RichardMEL
Feb 8, 02, 8:03 am
Cargo blow to Ansett's prospects
By Michael Bachelard and Steve Creedy
08feb02
ANSETT'S cargo and maintenance divisions have been ruthlessly skewered by Qantas as Ansett's lawyers admitted in court yesterday the airline's struggle to return to the air was in "considerable potential controversy".
The Australian has learnt that on Wednesday Qantas snatched a valuable cargo contract from Ansett, putting a further 300 jobs at risk.
Earlier this week the airline's administrators revealed that Tesna, the proposed owner of Ansett Mark II, would employ only 3000 staff, 1000 fewer than previously announced.
The largest Ansett union yesterday called on "corporate heavyweights" to stop slugging it out and put an end to the staff's "misery and trauma", while the federal Government washed its hands of the issue, saying it was purely a commercial transaction.
Administrator Mark Korda put a gloss on the prospects of a successful sale of Ansett, despite another rugged day trying to convince the Federal Court to give him legal indemnity against being sued.
"We are not more and more nervous," Mr Korda said outside court. "This is a very large and complex transaction. We've depended on a lot of third parties. We try and try and hope to succeed."
But counsel for the administrators, Simon Whelan QC, told Justice Alan Goldberg "the administrators are operating now, I think, in a field of considerable potential controversy".
One crucial problem ? a dispute between Sydney airport Corporation and the airline's administrators over terminal access ? seemed closer to resolution, with both parties saying they expected an agreement today.
The Government rejected a Labor push to intervene in the Ansett negotiations to protect jobs, with Treasurer Peter Costello saying Ansett's rescue was now a financial transaction between the administrators and a private company. "That's a matter between Tesna and the administrators; it's not something that involves the Government."
But Mr Costello hoped Tesna would put more money into Ansett and settle the Sydney airport dispute.
"It would be best for everyone concerned if the (Tesna) deal goes ahead," he said. "I hope the private sector consortium can put some more money in and operate a good airline."
A company half-owned by Qantas, Australian Air Express, has grabbed from the administrators a large and crucial contract with logistics and health company Mayne.
Australian Services Union secretary Martin Foley said job offers mailed to hundreds of cargo workers were contingent on a ground-handling deal with Malaysia Airlines and a domestic cargo contract with Mayne.
Mr Foley said he understood an agreement was reached between the administrators and Mayne, but was thrown out after a lower counter-bid by AAE.
The viability of Ansett's maintenance operations are now also in doubt after Qantas's refusal to pass work Ansett's way.
Six parties ? believed to include Singapore Technologies Aerospace subsidiary SASCO, global giant TRW, engine manufacturer GE and Singapore Airlines Engineering ? have expressed an interest in aspects of the maintenance operations, which the administrators are trying to sell separately.
But it is understood some of the companies doubt that Ansett's fleet alone will provide enough work to make the engineering facility viable.
Ansett had asked Qantas to grant it a contract to work on some of the 737 and 767 fleet, but Australian Workers Union secretary Bill Shorten said that work would now go overseas.
Ansett maintenance employs about 1300 people.
By Michael Bachelard and Steve Creedy
08feb02
ANSETT'S cargo and maintenance divisions have been ruthlessly skewered by Qantas as Ansett's lawyers admitted in court yesterday the airline's struggle to return to the air was in "considerable potential controversy".
The Australian has learnt that on Wednesday Qantas snatched a valuable cargo contract from Ansett, putting a further 300 jobs at risk.
Earlier this week the airline's administrators revealed that Tesna, the proposed owner of Ansett Mark II, would employ only 3000 staff, 1000 fewer than previously announced.
The largest Ansett union yesterday called on "corporate heavyweights" to stop slugging it out and put an end to the staff's "misery and trauma", while the federal Government washed its hands of the issue, saying it was purely a commercial transaction.
Administrator Mark Korda put a gloss on the prospects of a successful sale of Ansett, despite another rugged day trying to convince the Federal Court to give him legal indemnity against being sued.
"We are not more and more nervous," Mr Korda said outside court. "This is a very large and complex transaction. We've depended on a lot of third parties. We try and try and hope to succeed."
But counsel for the administrators, Simon Whelan QC, told Justice Alan Goldberg "the administrators are operating now, I think, in a field of considerable potential controversy".
One crucial problem ? a dispute between Sydney airport Corporation and the airline's administrators over terminal access ? seemed closer to resolution, with both parties saying they expected an agreement today.
The Government rejected a Labor push to intervene in the Ansett negotiations to protect jobs, with Treasurer Peter Costello saying Ansett's rescue was now a financial transaction between the administrators and a private company. "That's a matter between Tesna and the administrators; it's not something that involves the Government."
But Mr Costello hoped Tesna would put more money into Ansett and settle the Sydney airport dispute.
"It would be best for everyone concerned if the (Tesna) deal goes ahead," he said. "I hope the private sector consortium can put some more money in and operate a good airline."
A company half-owned by Qantas, Australian Air Express, has grabbed from the administrators a large and crucial contract with logistics and health company Mayne.
Australian Services Union secretary Martin Foley said job offers mailed to hundreds of cargo workers were contingent on a ground-handling deal with Malaysia Airlines and a domestic cargo contract with Mayne.
Mr Foley said he understood an agreement was reached between the administrators and Mayne, but was thrown out after a lower counter-bid by AAE.
The viability of Ansett's maintenance operations are now also in doubt after Qantas's refusal to pass work Ansett's way.
Six parties ? believed to include Singapore Technologies Aerospace subsidiary SASCO, global giant TRW, engine manufacturer GE and Singapore Airlines Engineering ? have expressed an interest in aspects of the maintenance operations, which the administrators are trying to sell separately.
But it is understood some of the companies doubt that Ansett's fleet alone will provide enough work to make the engineering facility viable.
Ansett had asked Qantas to grant it a contract to work on some of the 737 and 767 fleet, but Australian Workers Union secretary Bill Shorten said that work would now go overseas.
Ansett maintenance employs about 1300 people.