ANstaff Info

 
Old Oct 19, 01, 6:56 pm
  #1  
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Join Date: Nov 2000
Posts: 657
ANstaff Info

Hi,

I hadn't posted any ANstaff info, but here is a short Q&A I received a little while ago, and a post I wrote a while ago. It includes details of the previous incarnation of Lewfox - the budget carrier version of AN.

ANstaff

* Ansett Australia Name
* 42 Mainline 320/737/767 Jets (initially)
* 4 BAe146 Cargo Jets
* Golden Wing & Ansett Global Rewards
* Full Service
* No AN International for now
* 6500 staff (160 per aircraft)
* Star Alliance
* Maintenance to be based in MEL
* Possible move interstate of adminstration - costs to be investigated

ANstaff has reportedly spent about $1 million dollars on their bid.

Fox Consortium

* 20 A319/320/321s
* 2000 staff
* No frills
* Ticket sales via phone & internet

Interesting how Mr Anderson thinks AN, the "carcass" can be reborn now...

Here's the memo from ANstaff

"The business plan was finished this week and there was a significant amount of time spent going over the data and proposal and double-checking figures.

The concept…

Our plan is basically built around the concept and clientele that Ansett has traditionally focused on. It will be a full service, premium airline. It will utilise from the outset 737, A320 and 767 aircraft. It will be a 2-class carrier and be a STAR Alliance partner. We will have a ‘frequent flyer’ or loyalty program and also run Golden Wing lounges. The route network and frequency has been rationalised to those routes that are profitable and /or strategically necessary.

We currently employ close to 200 persons per aircraft that we operate (the figures of over 200 per a/c you may have seen includes Traveland, Showgroup, regionals, etc). Qantas operate about 169 per a/c. We are aiming for world’s best practice for a full service airline of 150 – 160 per a/c, so job cuts will be a fact of life. This will be compensated for by improved productivity. (You may have also see figures bandied about of 100-110 per a/c as world’s best practice – that is for a budget carrier).

We plan on operating about 40 aircraft plus spares and the regos of the aircraft that we want have been identified, taking into account, lease costs, outstanding and forecast maintenance.

The costs associated with operation of the Golden Wing lounges have been taken into account, along with a marketing strategy and target customer focus.

The liabilities of the past Global Rewards program have been assessed and a plan to honour the points is being formulated. There is also a plan on what the new loyalty program will entail and also whom it will target. This has also been costed.

It is believed that it is essential to re-launch the airline and regain significant market share. This does not mean that we are attempting to get back our 40 plus percent. What it does mean is that if we do not launch with a significant route structure we will not be able to retain our corporate, high value customers. That is the basis for the argument of re-starting with the 40 odd aircraft.

All of these elements are tied together. Corporate clients want a loyalty program and lounges, along with a significant route structure. All of this is also necessary to re-enter the STAR Alliance whom we have had numerous talks with, along with United Airlines and Singapore Airlines.

Some common questions…

Are Singapore Airlines coming to manage Ansett?
We believe that they are sending a team here to work with the administrator in some capacity but we have no more knowledge than any of you.

Will they affect our bid?
We don’t know what they intend on doing but we know that if they are interested in working with any group whose goals/ideals are aligned with theirs, we are the only party in town.

Will the 146 and 747 figure in our plan?
At this stage only the 146 freighters have been factored in and this is purely for cost reasons i.e. operating and ongoing maintenance liability. We are, however, looking at other types to replace it as part of an ongoing plan. The 747 and the International operation are important and profitable, as well as filling holes in the STAR Alliance worldwide network, but it cannot exist without the main domestic routes and, as such, is not in the initial proposal.

How many pilots will be employed and how do we choose them?
There will be approximately 500 positions. As far as who gets the Guernsey, I have no idea. The objective of the work being done is to get Ansett flying and save as many jobs as possible. Whoever stumps up the cash and the management team will decide how they go about it.

Will we share in the ownership of the company?
It has always been part of the proposal that employees will be able to take part in a share ownership plan that initial estimates suggest could be between 20-30 percent of the company. This is a benefit to both the employees (through returns on the investment) and the owners (through improved productivity and motivation). However if an investor comes along who wants total ownership, and it falls in line with our plans to minimise job losses, no problemo.

Lindsay Fox’s bid?

We were briefed about it last weekend. We were told that this model utilised up to 20 A319/320/321 aircraft and would employ around 2000 people. It would be a budget style of carrier with single class, no loyalty program, no lounges, etc.

The problem that we have with this concept is that we believe that you will be going head-to-head with Virgin and it would very difficult to get Ansett’s costs as low as theirs. Also you would be alienating all of the loyalty that is built in to the Ansett brand. i.e. why will the leisure customer choose new Ansett over Virgin when there is no relationship with the previous Ansett in terms of service level, etc? The tickets will be bought on price and that is all. Also why will the corporate/business traveller choose Ansett without any of the ‘frills’ that they are accustomed to?

What’s next?

On Monday we have an appointment with the administrator to show them our business plan. This is a significant step in the march toward our goal. We have also been in discussion with backers and, although there is plenty of interest, we have not had any firm commitments yet. This is not unusual as the plan has only just been finalised and verified last night, thus no one has seen the final product as yet.

I hope that this has answered a few questions. This week will be the one that will give us enough feedback to determine if we have a goer or are simply just spinning our wheels.

Luke Smith.

Vice President

Ansett Pilots Association"

Comments? It's certainly my favourite bid. I don't see the point in having another Virgin Blue type airline - described as going for the "sandals & sarongs" market. Nor do I buy the argument that Australia cannot handle two full service carriers - the size of the market wasn't the cause of Ansett's downfall, rather its inefficiencies and questionable management - 74% load factor isn't anything bad, most airlines make money on that!

Secondly, I know there will be some quibbles about the 733/320/763 fleet mix - this is only a temporary measure, as the consortium believes that it needs to get significant capacity back in the air to win corporate customers. Fleet rationalisation will come in the medium term - they'll certainly need it.

Travel Agents better hope ANstaff gets Ansett, not the Fox consortium - they won't have a bite in a Fox Ansett, unlike ANstaff.

Cheers,

Justin
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Old Oct 20, 01, 5:17 am
  #2  
 
Join Date: Dec 2000
Location: Melbourne, Vic., Australia.
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Justin, thanks muchly for posting this - it's interesting to read the details rather than hear bits and pieces around the traps.

Seesm to me that ANStaff have a different idea as to what Fox/Lew do re their bid, if what has been publically announced is to be believed.

Also, it's madness to just assume that all those corporate folks will trudge back to AN like sheep. How many were bitten and said "never again" after the various 767 groundings (ie: end of last year and easter this year). How many just won't trust that AN will survive and put their $ and loyalty with QF who will?

It seems like a nice dream but I really wonder how serious ANStaff can really be - who is going to manage/run the thing - SQ would consult, not run the airline.

I'd love ANStaff to get up there, but I question the viability.

I am not saying Fox/Lew is any better, but at least they want to focus on one fleet type and take it from there.

Anyway we'll see http://www.flyertalk.com/forum/smile.gif

------------------
RichardMEL, UA 1K
A Star Alliance Member.

[This message has been edited by RichardMEL (edited 10-20-2001).]
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