The WA government is responding to the potential collapse of Ansett and Skywest, focusing on job losses in Wanneroo and ensuring continued regional air services. They are in talks with Qantas and lobbying the federal government for support.

AnsweredQoN 358Legislative Assembly
Asked
12 September 2001
Member
Portfolio
Planning and Infrastructure

QuestionView source ↗

ANSETT AUSTRALIA AND SKYWEST AIRLINES PTY LTD, FUTURE
Have there been any further developments on the future of Ansett Australia and Skywest Airlines Pty Ltd? Ms MacTIERNAN

AnswerView source ↗

I thank the member for some notice of this question. Obviously, this matter is of concern to the member for Wanneroo because a number of her constituents are among the 360 people employed at the Joondalup call centre. As I advised the House earlier, Qantas Airways Ltd decided, for commercial considerations, against purchasing the operations of Ansett and Skywest. Air New Zealand has submitted a proposal to the Australian Government to continue Ansett for some time. The proposal submitted to the Prime Minister essentially asks the Australian Government to underwrite a proposition for Ansett to continue to operate for an agreed period while an attempt is made to either restructure the airline or dispose of its operations as a going concern. I understand that would require the federal Government to pay Ansett Australia up to $50 million a week to keep the airline fundamentally in a holding pattern until an arrangement could be made. It is anticipated that will take a week or two. That matter is now before the federal Government, and we expect a decision within the next hour or two. As I said earlier, it is highly likely that Ansett Airlines and Skywest Airlines will go into receivership. With that in mind, we have been talking extensively to Qantas. Qantas has made contingency arrangements to ensure that alternative services are put in place immediately for regional Western Australia. Those propositions are also before the federal Government at this time. We are continuing to make representations to the federal Government to ensure that it is aware of how important these services are to Western Australia. Once we get through this immediate crisis, we will need to examine the structure of the aviation industry in this country to see how it can achieve greater stability.
Ms MacTIERNAN replied: I thank the member for some notice of this question. Obviously, this matter is of concern to the member for Wanneroo because a number of her constituents are among the 360 people employed at the Joondalup call centre. As I advised the House earlier, Qantas Airways Ltd decided, for commercial considerations, against purchasing the operations of Ansett and Skywest. Air New Zealand has submitted a proposal to the Australian Government to continue Ansett for some time. The proposal submitted to the Prime Minister essentially asks the Australian Government to underwrite a proposition for Ansett to continue to operate for an agreed period while an attempt is made to either restructure the airline or dispose of its operations as a going concern. I understand that would require the federal Government to pay Ansett Australia up to $50 million a week to keep the airline fundamentally in a holding pattern until an arrangement could be made. It is anticipated that will take a week or two. That matter is now before the federal Government, and we expect a decision within the next hour or two. As I said earlier, it is highly likely that Ansett Airlines and Skywest Airlines will go into receivership. With that in mind, we have been talking extensively to Qantas. Qantas has made contingency arrangements to ensure that alternative services are put in place immediately for regional Western Australia. Those propositions are also before the federal Government at this time. We are continuing to make representations to the federal Government to ensure that it is aware of how important these services are to Western Australia. Once we get through this immediate crisis, we will need to examine the structure of the aviation industry in this country to see how it can achieve greater stability.
I thank the member for some notice of this question. Obviously, this matter is of concern to the member for Wanneroo because a number of her constituents are among the 360 people employed at the Joondalup call centre. As I advised the House earlier, Qantas Airways Ltd decided, for commercial considerations, against purchasing the operations of Ansett and Skywest. Air New Zealand has submitted a proposal to the Australian Government to continue Ansett for some time. The proposal submitted to the Prime Minister essentially asks the Australian Government to underwrite a proposition for Ansett to continue to operate for an agreed period while an attempt is made to either restructure the airline or dispose of its operations as a going concern. I understand that would require the federal Government to pay Ansett Australia up to $50 million a week to keep the airline fundamentally in a holding pattern until an arrangement could be made. It is anticipated that will take a week or two. That matter is now before the federal Government, and we expect a decision within the next hour or two. As I said earlier, it is highly likely that Ansett Airlines and Skywest Airlines will go into receivership. With that in mind, we have been talking extensively to Qantas. Qantas has made contingency arrangements to ensure that alternative services are put in place immediately for regional Western Australia. Those propositions are also before the federal Government at this time. We are continuing to make representations to the federal Government to ensure that it is aware of how important these services are to Western Australia. Once we get through this immediate crisis, we will need to examine the structure of the aviation industry in this country to see how it can achieve greater stability.
Obviously, this matter is of concern to the member for Wanneroo because a number of her constituents are among the 360 people employed at the Joondalup call centre. As I advised the House earlier, Qantas Airways Ltd decided, for commercial considerations, against purchasing the operations of Ansett and Skywest. Air New Zealand has submitted a proposal to the Australian Government to continue Ansett for some time. The proposal submitted to the Prime Minister essentially asks the Australian Government to underwrite a proposition for Ansett to continue to operate for an agreed period while an attempt is made to either restructure the airline or dispose of its operations as a going concern. I understand that would require the federal Government to pay Ansett Australia up to $50 million a week to keep the airline fundamentally in a holding pattern until an arrangement could be made. It is anticipated that will take a week or two. That matter is now before the federal Government, and we expect a decision within the next hour or two. As I said earlier, it is highly likely that Ansett Airlines and Skywest Airlines will go into receivership. With that in mind, we have been talking extensively to Qantas. Qantas has made contingency arrangements to ensure that alternative services are put in place immediately for regional Western Australia. Those propositions are also before the federal Government at this time. We are continuing to make representations to the federal Government to ensure that it is aware of how important these services are to Western Australia. Once we get through this immediate crisis, we will need to examine the structure of the aviation industry in this country to see how it can achieve greater stability.

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