Frequent flyers could win out

 
Old Jan 23, 02, 7:50 am
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Frequent flyers could win out

Frequent flyers could win out
By STATHI PAXINOS
Thursday 24 January 2002

Ansett frequent flyers could be better off than other creditors once the new
airline's loyalty program was announced, the Ansett administrators said yesterday.

Administrators Mark Mentha and Mark Korda, from accountants Andersen, yesterday
fended off claims that the administration team had not helped 2.7 million Global
Reward points holders, whose points have been frozen since Ansett's collapse.

Diners Club, which is in talks with proposed owner Tesna, this week advertised to
act as proxy at Tuesday's creditors' meeting for its cardholders who lost points.

Creditors will vote to approve the conditional sale of Ansett's intercapital
operations to the Tesna syndicate, headed by Melbourne businessmen Lindsay Fox and
Solomon Lew.

Nearly 70 billion points were suspended when Ansett was grounded in September, but
Diners believes the administrators' valuation of $140 million - about 0.2 cents per
point - is too low.


The administrators said the issue could become moot
once they launched their loyalty scheme. A Tesna
spokesman has declined to reveal details of any
scheme, but confirmed a frequent-flyer program was
part of the pl ans.

Mr Korda said that "there's a good probability that
they (frequent flyers) will be better off than the
normal run-of-the-mill unsecured creditor and we're
in there fighting hard for them".

He said the administrators had been painted as
ignoring frequent-flyer issues.

"We have very commercially sensitive negotiations
under way to try to maximise the return to the
frequent flyers because they are just as much
creditors as anybody else," he said.

Meanwhile, unions have reached an in-principle agreement with Tesna to secure up to
$240million in workers' entitlements and say employees who were offered jobs should
accept the positions by today's deadline.


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