Sydney, 14.09.01

Ansett Australia - The Story Is Over

This is a copy of the official press release about the suspension of operations:

ANSETT OPERATIONS SUSPENDED

Ansett Australia Administrator Mr Peter Hedge of PricewaterhouseCoopers announced early this morning the following decision regarding the operations of Ansett Australia and its subsidiary airlines.

"The administrators were appointed on Wednesday evening and have been examining the airline with a view to determining viable options for the sustained operation of Ansett Australia and its subsidiary companies.

"After due consideration of the issues involved, and examination of associated daily operating costs, it is with regret that it has been necessary to suspend immediately all flight operations of Ansett Australia, Ansett International, Hazelton Airlines, Kendell Airlines (Aust) Pty Limited, Skywest Airlines and Aeropelican.

"The decision to ground the airline group was made with great difficulty early this morning, following meetings with numerous parties including representatives of all key unions.

"It is important to clarify that this action, to cease flight operations, is due to the lack of necessary cash or facilities to fund the operation.

"I must however stress that we remain in discussions with a number of interested parties regarding future options for Ansett Airlines and other parts of the group.

"I am acutely aware as is the Ansett management team, of the impact this regrettable action will have on the employees, customers, suppliers and many regional centres, cities and towns across Australia.

"However after considering the immediate financial position of the company, the level of daily losses being incurred, and in the absence of any immediately viable solution, it was decided there was no other option."

Peter Hedge
PricewaterhouseCoopers