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Australia Govt sabotaging Ansett revival efforts: Unions
The Australian Council of Trade Unions Wednesday accused the Federal government of trying to sabotage efforts to revive failed airline Ansett.
The Australian Council of Trade Unions Wednesday accused the Federal government of trying to sabotage efforts to revive failed airline Ansett.
ACTU secretary Greg Combet cited a letter dated Oct. 7 from transport minister
John Anderson to the administrators of Ansett, which he said shows the
government is attempting to "tie the hands" of the administrators and drive
Ansett towards liquidation.
The letter, Combet claims, is a request from the government for administrators at Arthur Andersen to freeze the A$150 million paid to Ansett from parent Air New Zealand Ltd. (A.AIZ), thereby hindering the chances of developing a viable airline.
Ansett was Australia's second-largest airline before it was grounded Sept. 14 due to a surging debt bill. It is under administration but has resumed some services.
The letter, Combet claims, is a request from the government for administrators at Arthur Andersen to freeze the A$150 million paid to Ansett from parent Air New Zealand Ltd. (A.AIZ), thereby hindering the chances of developing a viable airline.
Ansett was Australia's second-largest airline before it was grounded Sept. 14 due to a surging debt bill. It is under administration but has resumed some services.
Administrators Mark Mentha and Mark Korda are trying to convince Singapore
Airlines Ltd. (P.SAL) to take on an advisory role initially with Ansett and
possibly a management role involving an equity stake in the Melbourne-based
airline.
Tuesday, Anderson said the Australian government backed such a proposal.
But Combet said the government "is hell bent on seeing Ansett liquidated with
the loss of 17,000 Australian jobs."
Bureau Report