A scaled-down Ansett - dubbed Ansett Mk II - was scheduled to take to the air on Melbourne-Sydney-Brisbane routes on 29 September, operating five Airbus A320s, with six more to be phased in over the following two weeks on other busy routes.

The new Ansett will employ 1,500 of the failed airline's 16,000 staff, adding more as the fleet grows to 11 aircraft. The operation is underwritten for 12 weeks by Australian Government ticket refund guarantees to a limit of A$25 million ($12.1 million)in the event of another collapse.

Following the breakdown of talks between the administrators and Qantas on the latter's wet lease of Ansett aircraft, the A320s will fly in Ansett livery using its current air operator certificate, now held by administrators Arthur Andersen.

The limited operation, on a "value-based" basis, will give the administrators time to negotiate with five interested parties, at least two of which are foreign airlines, for all or part of Ansett's assets.

Meanwhile, lessors - including Morgan Stanley subsidiary Ansett Worldwide Aviation Services, Singapore Aircraft Leasing Enterprise (SALE)and Air Canada - are preparing to repossess the bulk of the Ansett fleet. SALE is reportedly talking with Qantas to lease 12 aircraft.

Andersen administrator Mark Mentha says new Ansett may survive and grow if it is maintained as a going concern until buyers are found, but longer term would probably be reshaped as "Ansett Mk III" under a business plan to be developed after a market review.

Meanwhile, discussions are on-going about a financial bail-out for Ansett's former parent Air New Zealand. Shareholders Brierley Investments, Singapore Airlines and the New Zealand Government continue to discuss a rescue package.

Source: Flight International