Qantas Statement on Air New Zealand / Ansett

Qantas Airways Limited said today it had responded to a request by the Australian Government and the Air New Zealand / Ansett Group to look at the businesses of Ansett Australia Airlines and Ansett International.

Qantas Chief Executive Officer, Mr Geoff Dixon, said: "While we will do whatever we can to assist Ansett, our principal responsibility must be to our own customers, our shareholders and to our staff. We will not take any action that would put in jeopardy Qantas interests."

Mr Dixon said the Chairman of the Australian Competition and Consumer Commission, Professor Allan Fels, had agreed to the action.

Professer Fels has said in a letter to the Deputy Prime Minister, Mr John Anderson, "the Commission is not opposed to Qantas entering into negotiations with Air New Zealand and Ansett about possible solutions to the current situation and discussing potential courses of action. The Commission's position is conditional on Qantas not acquiring, or entering into any agreement to acquire, any of Ansett's assets without further consideration by the Commission."

Mr Dixon said Qantas did not know what action, if any, would result from the examination of elements of the Ansett businesses.

"Qantas is also in discussions with Virgin Blue about the Ansett businesses," he said.

Mr Dixon said Qantas was mindful of the need for a robust and competitive aviation industry in Australasia but that it was a capital intensive, high cost and highly regulated industry that was experiencing extremely difficult conditions throughout the world.

"Success can only be achieved by better productivity and sustainable fares. Both these issues continue to need to be addressed by all airlines, particularly in Australasia," he said.