ANSETT Australia is looking to bolster its UK presence this year after partner Air New Zealand took 100% control of the carrier.
ANZ reached agreement to buy the remaining 50% of Ansett that it did not own for an initial payment of £230m earlier this month from Rupert Murdoch’s News Corporation.
An ANZspokeswoman said it was too early to say what changes ANZ may make in the UK but closer ties with ANZ are expected to increase business. Ansett Australia -Êwhich does not serve the UK in its own right – is marketed and administered by ANZin the UK. But its domestic airpass product, which forms the bulk of UKsales, is sold in conjunction with all international carriers flying to Australia except Qantas.
British Midland’s entry into the Star Alliance this summer is also being targeted by both Ansett and ANZ for increases in ex-UKtraffic.
British Midlandis already the main provider of UKregional feed to ANZ and Singapore Airlines, but full membership of Star Alliance is likely to strengthen feed arrangements and expectations of more regional traffic coming into Heathrow on ANZ and SIA, and ultimately feed ing onto Ansett’s Australian network.
Ansett currently enjoys healthy UKfeeder traffic for its international network between Asia and Australia from links with Virgin Atlantic, plus other Asia-bound carriers over Hong Kong and other Asian gateways. ANZ’s 100% purchase of Ansett Holdings also gives the Kiwi carrier a 49% stake in Ansett International. ANZmanaging director Jim McCrea said this investment will now accelerate the development of Ansett’s international network.
ANZ’sacquisition is expected to help McCrea’s fulfil his long-term strategic plans to create an Australasian airline system – and a strong regional performer for the Star Alliance.
Ansett’s former alliance manager Peter Rowe, who joined British Midland last August as services director, is expected to use his expertise to develop the relationship between the two carriers. Rowe negotiated Ansett’s entry into the Star Alliance and was also involved with the UK airline’s application to join up to the global partnership.