 Simon Thomsen's Editorial
Icarus Ambitions
At the recent launch of Hazelton Airlines new service in to Ballina, CEO Andrew Drysdale prophetically told the gathering that the global airline industry had lost more money in the last three years than it had made in its entire 50-year history.
It's an insight into the foundations for last weeks collapse of Ansett, a company which, in a benevolent interpretation, was destroyed through neglect. More sanguine observers consider it more the result of incompetence on the part of a number of players - including the Australian and New Zealand governments, not to mention Ansett's parent company Air New Zealand.
To understand part of what has happened, imagine that The Echo, a small but successful newspaper, made a bid to take over The Northern Star and its subsidiaries. While we're quite good at what we do - a small fish in a small pond - we have neither the skill nor understanding of how our much larger new subsidiary operates - or deals with intense competition. Then throw in the fact that we lack the deep pockets to sustain any losses the bigger paper might make. And because we're in a hurry and feeling brash, we pay too much for The Star without really discovering what sort of return we'll get on the investment.
Key staff depart. Problems begin to emerge. Meanwhile, we're sticking our printing bill on The Star's account, making it lose even more money. By now, we realise we're in way over our heads and begin to look for a bigger partner with the cash to rescue both companies. Let's suggest Rupert Murdoch (a nicely ironic touch since it was Murdoch's News Ltd that sold its half share of Ansett to Air NZ at an over-inflated price). But a competitor complains to government, which needs to approve the deal. The government dithers and stalls.
And that is how a minor airline from across the Tasman added the final straws to break Ansett's back.
At the moment, methinks too many people protest too much. If only they'd used the energy now being expended on blame to try and save Ansett.
Australian Transport Minister John Anderson has opted for the Manuel defence - "I know nothing Mr Fawlty." Not only were the warning signs there when Ansett's planes were grounded with maintenance problems, he was told in June of an annual loss of $150 million and net debt of $1.9 billion. He was also busy advocating on behalf of Qantas as Air NZ tried to find a saviour.
Meantime, the NZ Government dragged its feet over plans for Singapore Airlines to throw Air NZ - and thus Ansett - a financial lifeline.
The Air NZ board was simply unspeakably stupid - and have since proved to be unspeakably amoral as they cut Ansett loose in an unprecedented act of corporate bastardry, washing their hands of any liabilities, including employee entitlements. You can bet there'll be a few Air NZ directors scanning the Majorca real estate guide before this is over.
The great travesty is that it has pulled down smaller, viable airlines like Hazelton. The Northern Rivers was lucky to have a dedicated local team of 32, led by the enormously capable Maurice Gahan. They did not deserve such an uncertain fate.
Like Icarus, an overconfident Air NZ soared too high, coming too close the sun. It brought down many with it. The real tragedy is many saw the warning signs, but absolutely no-one bothered to act.
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