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        The Air New 
        Zealand - Ansett Australia Group will comply with the Australian Civil 
        Aviation Safety Authority decision to ground the Ansett Boeing 767 
        aircraft but disputes CASA's view that confidence in the safety of the 
        B767 aircraft and the quality of maintenance work at ANNZES cannot be 
        sustained, the Group's President and CEO Gary Toomey said today.
 "We deeply regret that such a serious step has been necessary and 
        apologise to everyone that is affected by the grounding of our B767 
        aircraft. We will do our very best to ensure that everyone booked to 
        travel with us will safely get to their destinations
 
 "We are determined to address concerns held by CASA, to work with them 
        to get our grounded aircraft back into service, to demonstrate to CASA 
        that the quality of the practices and processes we have put in place at 
        ANNZES justifies continuing confidence, and to have Ansett emerge from 
        this unhappy process as one of the safest airlines in the world.
 
 "Ever since the Group's new management started moving into place towards 
        the end of last year, we have been giving high priority to a 
        comprehensive review of Ansett engineering and maintenance operations 
        and practices
 
 "Each one of the major issues with the maintenance of Ansett's B767 
        fleet that has emerged since just before last Christmas has been 
        identified and reported by us to the Civil Aviation Safety Authority - 
        not the other way round.
 
 "Last December, almost on day one of Ansett Air New Zealand Engineering 
        Services' establishment as an integrated business last December, the new 
        management team found out that important checks on a component of the 
        tail structure of Ansett's B767 aircraft were months overdue. The team 
        grounded the aircraft concerned, advised CASA, and carried out the work 
        that was required as soon as they heard of the problem.
 
 "From that point on, we have been working closely with CASA and Boeing 
        to review and improve the effectiveness of our maintenance and safety 
        management processes. We will continue to do so until each one of us is 
        satisfied that we have done everything possible to eliminate the risk 
        that the problems we've experienced will re-occur.
 
 "Immediately after the Christmas incident, we initiated checks on all 
        airworthiness directives and safety-related service bulletins from the 
        manufacturers applying to our aircraft to see if there were other 
        oversights.
 
 "Shortly after this, we discovered that another B767 aircraft had been 
        fitted with an incorrect wing flap component. Again, we grounded the 
        aircraft, advised CASA, and fixed the problem.
 
 "Most recently, the same checking process identified another set of 
        manufacturer's recommendations delivered in March last year that had not 
        been actioned. We consulted the manufacturer, agreed an immediate fix 
        and advised CASA of the situation.
 
 "We have just completed the checks on all airworthiness directives and 
        we expect to complete our checks to verify compliance with all 
        manufacturers' alert service bulletin applying to the Ansett fleet by 
        the end of this week.
 
 "We also put in place a new triple-check process to ensure that we have 
        received each airworthiness directive and manufacturers' recommendation 
        applying to our aircraft, have them logged them into our maintenance 
        planning process, and undertake the work required on time.
 
 "As a result of the restructuring and the reviews we've initiated in the 
        new ANNZES unit, a number of personnel who were previously responsible 
        for supervising maintenance processes are no longer with the company, or 
        are in the process of terminating their employment with us.
 
 "We are determined to emerge from this with one of the safest operations 
        in the airline industry," said Gary Toomey.
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