RichardMEL
Feb 22, 02, 9:59 pm
Like this was unexpected. NOT!
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Virgin rejects Ansett
23Feb02
BUDGET airline Virgin Blue has ruled out any deal with the Tesna consortium that is set to buy Ansett, ending weeks of speculation of a takeover or merger.
In a statement issued tonight, Virgin Blue chief executive officer Brett Godfrey said the airline would remain independent.
"Virgin Blue has determined that both its financial interests as well as the future needs of its staff and customers is best served by remaining independent," Mr Godfrey said.
He said Virgin Blue would continue its strategy of offering low fares and was confident it would remain profitable.
"If one looks around the world today, the airlines that are clearly succeeding are those that have stuck to the consumer friendly Southwest low fare model," he said.
But Tesna spokeswoman Heather Jeffery said the Australian market was "fundamentally different" to both the US and European markets in terms of both scale and relative costs.
"The market opportunity for value-based airlines to be anything other than niche players is limited," Ms Jeffery said.
The Tesna syndicate has been holding closed-door meetings with rival Virgin Blue for the past three weeks.
The Virgin/Tesna talks began with a series of preliminary discussions in London early this month when Tesna principles Lindsay Fox and Solomon Lew and the company's US investor David Bonderman met Virgin Group boss Sir Richard Branson.
The talks resumed in Melbourne this week with Mr Godfrey.
It was speculated Tesna and Virgin Blue were looking at setting up working agreements to challenge Qantas's stronghold and to negotiate the shared use of Ansett terminals.
But Ms Jeffery said no agreements of any kind had been reached and the discussions had been terminated.
"Virgin Blue and Ansett will participate in a three-airline market and compete for customers and market share, consistent with their respective business plans," Ms Jeffery said.
Mr Godfrey said Virgin Blue's decision should not be interpreted in any way as a statement about Tesna or its business plan.
"The talks that took place were both professional and amicable," he said.
"Our airline was built and was profitable in a three, and even a four airline environment.
"We have always welcomed healthy competition and we wish them (Tesna) well in their endeavour."
--
Virgin rejects Ansett
23Feb02
BUDGET airline Virgin Blue has ruled out any deal with the Tesna consortium that is set to buy Ansett, ending weeks of speculation of a takeover or merger.
In a statement issued tonight, Virgin Blue chief executive officer Brett Godfrey said the airline would remain independent.
"Virgin Blue has determined that both its financial interests as well as the future needs of its staff and customers is best served by remaining independent," Mr Godfrey said.
He said Virgin Blue would continue its strategy of offering low fares and was confident it would remain profitable.
"If one looks around the world today, the airlines that are clearly succeeding are those that have stuck to the consumer friendly Southwest low fare model," he said.
But Tesna spokeswoman Heather Jeffery said the Australian market was "fundamentally different" to both the US and European markets in terms of both scale and relative costs.
"The market opportunity for value-based airlines to be anything other than niche players is limited," Ms Jeffery said.
The Tesna syndicate has been holding closed-door meetings with rival Virgin Blue for the past three weeks.
The Virgin/Tesna talks began with a series of preliminary discussions in London early this month when Tesna principles Lindsay Fox and Solomon Lew and the company's US investor David Bonderman met Virgin Group boss Sir Richard Branson.
The talks resumed in Melbourne this week with Mr Godfrey.
It was speculated Tesna and Virgin Blue were looking at setting up working agreements to challenge Qantas's stronghold and to negotiate the shared use of Ansett terminals.
But Ms Jeffery said no agreements of any kind had been reached and the discussions had been terminated.
"Virgin Blue and Ansett will participate in a three-airline market and compete for customers and market share, consistent with their respective business plans," Ms Jeffery said.
Mr Godfrey said Virgin Blue's decision should not be interpreted in any way as a statement about Tesna or its business plan.
"The talks that took place were both professional and amicable," he said.
"Our airline was built and was profitable in a three, and even a four airline environment.
"We have always welcomed healthy competition and we wish them (Tesna) well in their endeavour."