ANSETT DECISION - WESTERN QUEENSLAND ROUTES

Ansett Australia has announced that with regret, and after detailed consideration of the Queensland Government's invitation to operate services on four out of eight licensed Western Queensland routes, the airline had declined the offer.

Vice President, of Ansett's Regional Airlines Australia Division Mr Ron Rosalky said: "We respect the Government's right to allocate the routes to a mix of operators and we appreciate the extension of time granted until 3.00pm today to allow Ansett to analyse the economics of the particular route package offered."

"Whilst we have examined invitation from all angles in conjunction with our operating costs, and fully taking into account associated subsidies, regrettably, to operate on the combination of particular routes offered would still result in substantial financial losses.

"Ansett's original tender had proposed a total network solution to reinstate the former Flight West network into the eight licensed Western Queensland routes. Our belief was that a total network solution would offer a single carrier ability to maintain an integrated service that shares aircraft operating costs while supporting the most marginal routes. "Over the past 24 hours we have undertaken detailed analysis and while it has been a most difficult decision, unfortunately we find the proposition is not commercially sustainable for Ansett.

"This decision in no way lessens our commitment to the provision of sustainable air services to regional communities.

"Ansett has worked hard to reinstate flights across regional Queensland in the wake of the unexpected collapse of Flight West Airlines utilising Flight West aircraft and reinstating 140 former Flight West staff.

"We will continue to operate services commenced last week on unlicensed routes to Bamaga, Brisbane, Cairns, Emerald, Gladstone, Mackay, Mt Isa, Rockhampton, Townsville, Weipa, Alice Springs, Darwin and Gove as well to the Pasminco Century Zinc and WMC Phosphate Hill mines.

"We want to continue to do all we can for the people of western Queensland and will co-operate fully with the airlines that take up the eight licensed routes.

"We will facilitate a smooth transfer of forward bookings and will work with Flight West's liquidator on the handover of necessary equipment.

"We do not want to see a repeat of the 1987 scenario when a former operator abandoned these routes taking everything with them.

"We would urge the successful western route operators to also do their utmost to re-employ Flight West staff, these are the same experienced people who operated those routes and served their regional customers well," he said.

"Finally, we wish the regional communities and the other operators well and we look forward to the opportunity of submitting a strong bid for the total western routes network tenders reopen in 2002.

The following routes were offered to Ansett:

Brisbane - Charleville - Quilpie - Windorah - Birdsville - Bedourie - Boulia - Mt Isa (and vice versa)

Townsville - Winton - Longreach

Townsville - Hughenden - Richmond - Julia Creek - Cloncurry - Mt. Isa