September 12-14 2001 - when Ansett came crashing down

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Note that the following is simply a relatively naive account. Remember that I really didn't know much about the world of aviation beyond sitting in a seat on a plane until I discovered AFF... but here is my living experience and thoughts at the time...



I was too young at the time to care about flying as much as I do now - being just a senior at high school.

Having known about Qantas, Ansett, Australian Airlines and Compass (as well as a few others) as I was growing up, I'd been used to seeing Qantas and Ansett planes about. As for on TV, airline news was never really a big deal unless someone was killed. (Unlike now where everything airline related - even a go around - can make the news. Vale quality journalism.) I do remember flying Qantas before, but not Ansett. We never travelled much in Australia, and internationally Ansett didn't do much until quite late in their tenure before their demise.

With Ansett having joined the Star Alliance, I thought they were leading the charge on the world in Australia. Qantas only followed suit a couple of years after. All of this made me think we had two great airlines, strong as could be. Then, of course, there was Ansett as the official carrier of the Sydney 2000 Olympics.

The first signs I thought something was odd was when it was announced that Ansett was being taken over by Air New Zealand. Well, there was the suspension of Ansett's international forays, but I didn't think too much of those. Now I was just a young student with no clear idea about the aviation industry, but knowing that we had two proud national carriers (ones that carried pax internationally) at the time - Qantas and Ansett - it befuddled me how something like this could happen. Why would Air New Zealand want to buy one of our airlines, and why would one of our proud own want to be owned by the Kiwis? (Then again, Australians are good at selling their own shirts - viz. Vegemite and a whole bunch of other Australian items that aren't really Australian any more).

Then came the groundings. And the staff lay-offs. Not great news, especially when the busy periods of travel rolled around. The new ad campaigns featuring Vanessa Amorosi's song, Absolutely, only seemed to work temporarily.

When Ansett collapsed, it was a surprise to me. Probably that I was still getting over the 9/11 "surprise", but the whole thing that Ansett seemed to be going down the gurgler all but appeared to sneak up on me, perhaps more than just me. The idea that everything just stopped there and then (except planes flying in the sky) was unusual. Couldn't imagine anyone going to the terminal and just being told, "You're not flying. We're finished. Go home." But that was what was happening.


What I never understood then and now was how the federal government was - by "force" - obligated to ensure the entitlements of all Ansett employees, which was eventually passed down to the flying public (with a rather inconsequential charge in retrospect). The top people at Ansett had no accountability in the whole affair (just like every other corporate collapse - the board always swindles their full "entitlement" before everyone else). Air New Zealand appeared to just wash its hands of the airline like emptying the garbage. Of course it wasn't the fault of the AN employees that they lost their entitlements, but I didn't like the way that it was portrayed in the media that, "If our company can't pay our entitlements, then it's up to you (referring to the government and in general the Australian population) to do so!" as if it was somehow the general public's fault that AN went under or we had a pseudo-legal obligation to help them out. In the end, what the government did was a goodwill gesture and not law (from what I could imagine, I could be wrong, as there may be such a provision).

I saw AN Mark II fail miserably as it had no support. I saw AN passengers with millions of frequent flyer miles see red and vent on TV, though I had to wonder who exactly were they blaming with such a rant. I watched Virgin Blue get into hot water for not hiring former AN FAs on account that they were either not young enough, and/or not pretty enough. I saw Richard Branson joke with the media that he was going to get in bed with Ansett, then remark "I'm only joking!" and then after demonstrated his earnestness by ripping up the paperwork there and then. Perhaps a false thought then, but I was scared that since Ansett had collapsed, the Australian aviation sector was in some sort of disarray, and that Qantas may have followed suit. Luckily (perhaps), they didn't.

That was me and my understanding of Ansett in 2001. I never got a chance to fly them myself. A lot of people said they were a great airline. In hindsight, if they had the integrity to be invited to start with the Star Alliance, they were probably right. Why did they fail if everyone loved Ansett? Their failure seemed to come about by a couple of tipping point events, but it seemed unfair that those mere events should be their undoing. Was it a veil of a great airline masking a mismanaged and ill-invested one?
 
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What I never understood then and now was how the federal government was - by "force" - obligated to ensure the entitlements of all Ansett employees, which was eventually passed down to the flying public (with a rather inconsequential charge in retrospect). The top people at Ansett had no accountability in the whole affair (just like every other corporate collapse - the board always swindles their full "entitlement" before everyone else). Air New Zealand appeared to just wash its hands of the airline like emptying the garbage. Of course it wasn't the fault of the AN employees that they lost their entitlements, but I didn't like the way that it was portrayed in the media that, "If our company can't pay our entitlements, then it's up to you (referring to the government and in general the Australian population) to do so!" as if it was somehow the general public's fault that AN went under or we had a pseudo-legal obligation to help them out. In the end, what the government did was a goodwill gesture and not law (from what I could imagine, I could be wrong, as there may be such a provision).

Something similar exists today and is very much law - GEERS, something of a legacy of Ansett and various other companies - welcome to the world of PTY LTD!

General Employee Entitlements and Redundancy Scheme - Overview
 
That was me and my understanding of Ansett in 2001. I never got a chance to fly them myself. A lot of people said they were a great airline. In hindsight, if they had the integrity to be invited to start with the Star Alliance, they were probably right. Why did they fail if everyone loved Ansett? Their failure seemed to come about by a couple of tipping point events, but it seemed unfair that those mere events should be their undoing. Was it a veil of a great airline masking a mismanaged and ill-invested one?

Air New Zealand should never have been allowed to take 100% ownership in AN. From memory AN was a larger company at the time too (don't quote me, as I can't find the source). And up until Air NZ owned 100% of it, it was owned by News Limited and TNT.
 
Air New Zealand should never have been allowed to take 100% ownership in AN. From memory AN was a larger company at the time too (don't quote me, as I can't find the source). And up until Air NZ owned 100% of it, it was owned by News Limited and TNT.

I guess they didn't realise what a basket case they were buying :shock:
 
Air New Zealand should never have been allowed to take 100% ownership in AN. From memory AN was a larger company at the time too (don't quote me, as I can't find the source). And up until Air NZ owned 100% of it, it was owned by News Limited and TNT.

Air NZ had owned 50% for some 5 years before it collapsed having bought out Ables, the Ansett of 1996 was a very different beast to that of 2001, although Ansett was the 32nd largest airline in the world versus AirNZ at 39.
 
Air NZ had owned 50% for some 5 years before it collapsed having bought out Ables, the Ansett of 1996 was a very different beast to that of 2001, although Ansett was the 32nd largest airline in the world versus AirNZ at 39.

that's right.. It bought the News Limited share first didn't it?
 
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My biggest regret about AN is that when they collapsed I had just made WP for the first time (got the membership card in the mail on 13/9)!
 
I know a few people who lost their jobs that day. They loved Ansett too. Maybe someone here could explain what about the company inspired such loyalty and even love in its employees? I would find that interesting.
Ten years later and I thought I was over it - reading the posts has bought sweet memories and rolling tears. What inspired such loyalty? But one example from me (a contractor but still regarded as one of the team) was the Oxford St boss Col Williamson, who knew every employee personally. Now that is family. And yes, within the Business Travel / VIP team alone there were a number of couples. And as for 'sliding door moments', but not for that I would never have left SYD.
 
What I never understood then and now was how the federal government was - by "force" - obligated to ensure the entitlements of all Ansett employees, which was eventually passed down to the flying public (with a rather inconsequential charge in retrospect). The top people at Ansett had no accountability in the whole affair (just like every other corporate collapse - the board always swindles their full "entitlement" before everyone else). Air New Zealand appeared to just wash its hands of the airline like emptying the garbage. Of course it wasn't the fault of the AN employees that they lost their entitlements, but I didn't like the way that it was portrayed in the media that, "If our company can't pay our entitlements, then it's up to you (referring to the government and in general the Australian population) to do so!" as if it was somehow the general public's fault that AN went under or we had a pseudo-legal obligation to help them out. In the end, what the government did was a goodwill gesture and not law (from what I could imagine, I could be wrong, as there may be such a provision).
My bolding.

And this socialising of losses is typical of private enterprise.

Companies pay the absolute minimum in taxes they are legally required to (indeed their shareholders would rightly scream otherwise) but are the first to disown their people when they go under and expect the government to pay their losses.

On this evening's 7.30 report (ABC1) there was a story about the final wind up of the receivership and payment of the final dividend to ex-employees.

There is still an expectation that the tax payers of Australia should have paid them money and done it immediately. And they still raved about how good the organisation was. Well let's get real folks, the organisation went broke because of mismanagement and the taxpayers paid you through higher airfares.

You're whinging about the wrong things and praising the wrong people.
 
Was an item on 7:30 report tonight re the Ansett anniversary...

As always I am happy to provide a youtube link if anybody missed it... :p
 
Brings back memories!

I had a few AN points in September and Mrs Tooner and I decided that we;d surprise my sister by turning up to her wedding in the UK (even though we had said we couldn't make it). So a points trip SYD - PER in J, and Royal Brunei J PER - LHR was purchased. All was well until 9/11!

We flew out on 14/9, and I well remember the STG120 cab fare from Islington to Paddington due to the memorial service traffic jam, and then the chaos at T3.

We were in the AA club in LHR when there was a news article suggesting AN was going to fall over. By the time we got to PER, the AN end was in darkness, and we purchased the last 2 seats on one of 2 red eyes QF put on.

The only benefit was we qualified as being part way through a flight, so the outlay was refunded by the government (so it wasn't only employees entitlements that were paid out).

In the end it was a shock, but we'd had a warning that all was not well. The 767 groundings for an airline that had a reputation for quality of maintenance suggested all was not well. NZ had indeed bitten off a large piece with AN, and I'd suggest they weren't prepared for the capex required to keep everything together. There was a fair amount of financial engineering in AN most of the time (mainly to ensure there was no need for Abeles and News to contribute capital), and it did need cash.

Something to look out for!
 
I remember sobbing as an 8 year old as mum cut up my first, and only, gold card with Global rewards- just my luck we would get them a day after the collapse :shock:

I spent so many of my younger years on Ansett aircraft and have really fond memories of the airline. For me being so young especially I struggled to comprehend the fact that they no longer flew...
I vividly remember one afternoon on the way into town seeing an Ansett BAE146 taking off from Broome, so excitedly I asked Mum if they were flying again- yet I was told they were merely operating a positioning flight.
To this day I still have a mountain of kids packs, boarding passes and even baby bibs from siblings.

To all the staff that made Ansett what it was, thankyou and to the airline I miss so much, RIP.

Gone but not forgotten.

A note on the side, theres still a few LD3 pellets at the Perth Intl terminal. Always brings back memories.
 
My local BNE suburban bistro used the J class cutlery when they opened - the remnants are everywhere if you know what you're seeing.
 
Yes please, I missed it....thanks!
Was an item on 7:30 report tonight re the Ansett anniversary...

As always I am happy to provide a youtube link if anybody missed it... :p
 
For all the AN addicts there is someone selling leather travel wallets and other stuff : flarose.com.au.
It was originally posted last year (I think) in a travel wallet thread on AFF. Great service and the wallet arrived beautifully wrapped in AN paper.
I have no connection with the business but was very impressed :)
 
I loved my first Ansett 747 flight, was SYD-KIX and i was in whY - upstairs in the bubble :)

First bubble experience (which in hindsight has since cost me a fortune in bubble-chasing ;))
 
i was in whY - upstairs in the bubble :)

ah, you few in the bubble, just before the bubble burst!

A lot of old memories brought back by all this. I had forgotten about the awful 'absolutely' campaign I was living in Canberra at the time of the bust, in Tuggers, and AN had only a few months before built and opened a call centre there. Didn't last long. Then there was the fine new SYD terminal, built for Sydney 2000. Anyone else remember the palace of a GW lounge they opened to go with their flights ex SYD international? How SQ were interested in 1996 (?) but were trumped by NZ who paid too much. The beginning of the end. No wonder they went belly up.

Cheers skip
 
For all the AN addicts there is someone selling leather travel wallets and other stuff : flarose.com.au.
It was originally posted last year (I think) in a travel wallet thread on AFF. Great service and the wallet arrived beautifully wrapped in AN paper.
I have no connection with the business but was very impressed :)

Ah yes I have one of these wallets.. Very very impressed with it too, It has recently returned with me from Auckland!
 
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