Forum Archive Index - May 2001

["mark walley" <mark_walley@hotmail.com>]

-    NEWS UPDATE


Now Ansett to chase Impulse deal


Ansett Australia chief executive Gary Toomey said today the airline would 
pursue talks with discount carrier Impulse Airlines on a possible deal.

Mr Toomey said he was surprised by yesterday's announcement of a tie-up 
between Qantas Airways Ltd and Impulse which will result in Impulse's brand 
disappearing from Australian skies.

In return for a injection of funds from Qantas, Impulse will stave off 
collapse and lease its aircraft to its former, larger rival.

Impulse said yesterday it had approach Qantas for a deal.

Mr Toomey said Impulse had not approached Ansett about a similar tie-up.

But he added, "we are interested in any proposal they (Impulse) might have."

Mr Toomey said Ansett could support a deal with Impulse as it had $600 
million in cash reserves.

Mr Toomey said Ansett had competition concerns about the Qantas/Impulse deal 
and would express those concerns in talks tomorrow with the Australian 
Competition and Consumer Commission.

Mr Toomey said Ansett would fight for the right to grow and compete against 
Qantas on an equal footing in the Australian domestic market.

He also dismissed claims by Qantas that its deal with Impulse meant an end 
to the airfare price war in the Australian market.

"Absolutely, there will be low fares in this market," he told reports in 
Sydney.

Mr Toomey said also that Ansett had not had any talks with other local 
discount airline, Virgin Blue, about a tie-up.

"I have not had any discussions with Virgin at this time," he sid.

"Obviously Virgin would have to assess their situation ... but they are 
fairly confident.

Virgin chief "Richard Branson will continue to support them in this market," 
Mr Toomey said.

"Virgin is not the only alternative for Ansett and we haven't had any 
discussions with them along those lines (a similar Qantas/Impulse deal)," he 
added.

Mr Toomey was speaking to reporters after launching the airline's $30 
million television advertising campaign, which will be screened across 
Australia tonight.

AAP


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