PracticeConsultingAnsett may fly again, says administrator

Ansett may fly again, says administrator

Anderson, the administrator of Ansett, had said it is making good progress with the airline, though the future of the beleaguered company is still hanging in the balance.

Reports from the Australian Associated Press suggest the airline could have ten aircraft back in service and 2,000 employees back to work tomorrow (Saturday) in a deal with Qantas. Andersen’s Mark Korda told AAP he was 99% certain the deal with the rival airline would go through.

Ansett went into administration last week after it fell victim to the global slowdown in the world economy and a deal with a potential buyer fell through. The company, which accounted for 38% of the Australian market, has liabilities of as much as A$2bn (Pounds 673m) and owes A$500m (Pounds 168m) in worker entitlements.

But despite the better news for Ansett workers, the outlook for the carrier remains uncertain. Ansett’s value is plummeting in the wake of the aviation meltdown and the discovery that Ansett owned less than 20% of its fleet.

‘The more we peel the onion back, the less that value becomes,’ Andersen’s Mark Mentha told Reuters, as administrators unravelled the situation.

And Andersen has had to contend with taking on a role started by a different team. PricewaterhouseCoopers was dropped as administrator after trade unions claimed it was inappropriate for PwC to continue because of what it claims was a conflict of interest.

Links

Administrators quit role at Aussie airline

Fight to rescue troubled Aussie airline

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