ANSETT RESCUE PLAN SET TO SAVE 200 JOBS

Ansett Australia confirmed today it would begin to restore vital air services to regional Queensland and Northern Territory from as early as Wednesday this week, following an agreement signed with Flight West liquidators, Ian Hall and Peter Hedge of PricewaterhouseCoopers.

The rescue deal for an initial period of 90 days with a possible extension, involves re-employment by Flight West, of up to 130 former Flight West Airlines staff who would assist Ansett to recommence flights to 16 Queensland and Northern Territory destinations using leased former Flight West aircraft and other assets.

Ansett has also pledged to recommence operations immediately on licensed routes to 20 Western Queensland ports, (requiring another 70 former Flight West staff) if a proposal lodged yesterday with the Queensland Government is accepted.

In Brisbane to announce the development, Gary Toomey, CEO and President of Ansett said: "We are pleased for the people who will be re-employed, we are pleased for remote communities and we are pleased once again to demonstrate Ansett's historic commitment to regional Australia."

"I would like to thank the Flight West staff and Mr Ian Hall from PricewaterhouseCoopers. Many people worked day and night with us since last week to find a workable solution to what has threatened to be a critical gap in Australia's air services network," he said.

"Our hope is to restart air services to licensed and unlicensed routes in regional Queensland and Northern Territory within days.

"We now have access to the same planes, and the same people who operated those routes and served their regional customers well for so long. We are ready to fly," he said.

Mr Toomey said: "Ansett will work closely with the liquidator over the next few months to find a long-term solution. We are committed to regional communities and we hope there will be a way to mount a viable service for customers previously served by Flight West."

Ansett will use eight aircraft from Flight West's fleet: six 30-seat Brasilias and two 91-seat F100s. Flights will be operated to Bamaga, Brisbane, Cairns, Cloncurry, Emerald, Gladstone, Mackay, Mt Isa, Rockhampton, Townsville, Weipa, Alice Springs, Darwin and Gove as well as the Century Zinc and Phosphate Hill mines.

In addition, Ansett has arranged for its commercial partner airline Sunshine Express to continue to operate scheduled services to Bundaberg and Hervey Bay.

If the license to operate Western Queensland routes is granted, two 19-seat Jetstream J32 aircraft will be leased from the liquidator to service those ports and Biloela/Thangool.

Ansett has obtained the necessary approvals from the Civil Aviation Safety Authority to recommence operations under Flight West Airlines Air Operators Certificate (AOC).

Management personnel have been appointed to allow operations to recommence. Mr Ron Rosalky also Vice President of Australian Regional Airlines; will act as Chief Executive Officer and Mr Scott McMillan a former Company Secretary of Flight West Airlines who has been acting in a consulting capacity to Ansett Australia Cargo for the last 18 months is appointed General Manager.