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The precursor to Ansett New Zealand entry into the
New Zealand market was the Government's deregulation of the civil aviation licencing
laws on the 1st of December 1983 to allow “open skies.” Deregulation meant
there were no licensing restrictions on anyone operating an air service
providing the operator met strict operational and safety standards and complied
with offshore shareholding limits.
Prior to this Australia’s Ansett Airlines had been involved in New Zealand air services on three occasions. The first was when their Short Sandringham flying boats operated the air service to the Chatham Islands from late 1955 to early 1957.
For more see : https://3rdlevelnz.blogspot.com/2014/07/ansetts-service-to-chatham-islands.html
The second foray into New Zealand came in the form of Ansett Airlines’ involvement in South Pacific Airlines of New Zealand, or SPANZ, as it was more commonly known. SPANZ operated flights from Auckland in the north to Invercargill in the south in the 1960s with three Douglas DC-3s.
Ansett’s third entry into New Zealand came in the form of trans-Tasman flights between Hobart and Christchurch. Flights were operated by Boeing 727 aircraft of Ansett Airlines which operated the flights on a Wednesday and Trans Australian Airways which operated the flights on a Saturday. The flights commenced on the 3rd of December 1980 and the 6th of December 1980 respectively. Ansett flights between Hobart and Christchurch ended on the 24th of March 1982.
Ansett Airways Pty Ltd had been formed by Sir Reginald Ansett in 1936 who developed wide ranging business interests. On the 21st of October 1957 Ansett Airways and Australian National Airlines were merged to form Ansett-ANA this name was retained until the 1st of November 1968 when it was renamed Ansett Airlines of Australia.
A generation on and his son Bob Ansett, took on the Australian rental car industry, which at the time was dominated by his father's company, Avis. A 1986 Press article gives some insight into the development of the Ansett brand but more importantly into the nature of Sir Reginald’s son and his business sense. Bob Ansett was to become a major player in the New Zealand domestic airline scene… The car rental industry in Australia during the mid-1970s was in a remarkably similar position to New Zealand today in that the market leaders had exclusive agreements with certain airport authorities to exclude the competition. In a long . and often bitter battle, Mr Ansett took on his father’s giant company and won. Today, not only has public opinion forced the airport authorities to rescind their restrictive practices, but Avis’s market share has been slashed from 85 to 17 per cent. Budget is the new market leader, with 56 per cent… Success for Budget came through setting a daily objective, and in the early days the objective was very simple - to beat the competition. “If you succeed you’ve got to be better than your competitor.” Twenty years later little changed for Budget except for the massive drop in Avis’s market share. The new objective was to "beat the hell out of the competition.” …To achieve his goal, Mr Ansett psyches himself up each morning. "If I haven’t been provoked the previous day, I manufacture some provocation so I’m literally steamed up and blinded with rage as I tear up the stairs to work.” Competing is no good unless you win, according to Mr Ansett, and this depends on leadership. One of the worst mistakes is to have too ambitious a goal to begin. When the company does not achieve it, the executives lose their nerve. Mr Ansett’s plans in Australia are to break up the domination of Australia’s two domestic airlines. He sees that industry as a “plum” because of the regulated market. He has no aviation ambitions in New Zealand because the New Zealand market is deregulated.
In March 1986 it was clear that Ansett Airlines was looking to investing in, at that time, an unconfirmed, expansion of Newmans Air through New Zealand shipping firm, the Union Steam Ship Company. Newmans Air had been investigating the feasibility of introducing jet aircraft to the main trunk route between Auckland, Wellington, and Christchurch in direct competition with Air New Zealand. Sir Peter Abeles said Ansett alone could not provide financial backing for Newmans Air, but he confirmed that one of Ansett’s two parent companies, the Worldwide Transportation Group, and TNT, would be willing to provide any material support requested by the airline. That would include leased aircraft, maintenance facilities, computer programmes, and. engineers and pilots to supervise training, he said. TNT and Rupert Murdoch’s News Corporation jointly own Ansett Transport Industries which in turn has about 30 subsidiaries covering airlines (including Ansett), coachlines, hotels, and finance and investment companies. The Union Steam Ship Company is half-owned by TNT. Sir Peter said the Newmans Group had discussed with him the possibility of the Union Company’s taking a shareholding in Newmans Air, but he emphasised it would not be a controlling interest. “We have told Newmans that if finance is needed the Union Company, which is half New Zealand-owned, would be prepared to provide it,” said Sir Peter. “But at this stage nothing has been finalised. It could be another six months before it is all sorted out. “I don’t think anybody in New Zealand knows yet what the future holds - they are looking at a lot of other possibilities but have yet to make up their minds.”
The following month the Government introduced amendments to air licensing regulations specifically to allow Ansett Airlines to tie in with Newmans Air. The proposed amendment to the Air Services Licensing Act sought to remove restrictions on overseas ownership of domestic airlines in New Zealand.
In April 1986 the Government gave approval for an Ansett, Brierley Investments Ltd and Newmans Group consortium, with Ansett holding a 50 per cent stake in the new venture. The following week it was announced that Newmans Air maintenance base at Christchurch would be expanded provide a multi-million dollar heavy maintenance facility to service the aircraft to be flown on the main trunk routes by consortium. This had been a condition of the Government's approval of Ansett's 50 per cent shareholding in the consortium.
Further approval for the consortium came on the 26th of June 1986 when the Commerce Commission announced that it had given approval for a joint venture company, consisting of Ansett, Brierley, and Newmans Group, Ltd, to buy assets of Newmans Air, the wholly owned airline of Newmans Group, Ltd. The joint venture, yet to be incorporated, has Ansett owning 50 per cent, Brierley up to 30 per cent, and Newmans Group up to 22.5 per cent. Such a move would give Newmans Air the necessary capital to expand to the main trunk routes. In a statement, the managing director of Newmans Group, Mr Rex Loach, said that the Commerce Commission approval was welcomed as a first step. “Before further steps can be considered we must await the passing of the Air Services Licensing Amendment Bill, currently scheduled for its second reading.
On the 1st of July the Minister of Transport, Richard Prebble, set down restrictions on foreign investment in New Zealand aviation and at the same time provided guidelines for the Overseas Investment Commission to consider the application for Ansett’s participation in the airline proposal. Mr Prebble said the Government would not allow “shell” companies in aviation, which would be established domestically but function essentially as foreign airlines. “Any domestic aviation company must be essentially a New Zealand company.” The second restriction was that no overseas airline would be able to own more than 50 per cent of a New Zealand company.
By the end of July 1986 the consortium was in negotiations with airport authorities at Auckland, Wellington and Christchurch for terminal space.
As plans for the developing airline firmed up it came under fire from Air New Zealand and unions who held fears about the proposed main trunk competition and what this might to do the national carrier, regional routes and Air New Zealand jobs. Air New Zealand expressed real concerns about the future of their engineering base in Christchurch. The consortium challenged Air New Zealand saying it was willing to buy the base and that the national carrier should either agree to negotiate the sale of its Christchurch engineering base or guarantee the jobs of its employees. When the offer was rejected an Ansett spokesman said, Air New Zealand’s rejection of the offer showed it wished only to protect its domestic monopoly. “It is now clear that Air New Zealand will make any statement or threaten any action to try to avoid competition. Meanwhile, Air New Zealand described the proposal “as transparent gimmickry.’ The airline likened the Government to the “tooth fairy,” which had visited Ansett and given them landing rights. “Now they (Ansett) want parts of Air New Zealand gifted to them too. They must be naïve.”
As the battle for the domestic airways intensified the Minister of Civil Aviation, Richard Prebble, said, any Ansett aircraft flown on domestic routes as an expanded Newmans Company would have to be both registered and serviced in New Zealand. By this stage the consortium was looking to fly three or four Boeing 737 in competition with Air New Zealand on the Auckland, Wellington, and Christchurch routes.
On the 20th of August 1986 Ansett Transport Industries, Brierley Investments Ltd and the Newman Group consortium announced it had agreed to abide by the conditions set by the Government, including building a new airline base at Christchurch within two years, and that it would fly on the Auckland-Wellington-Christchurch main trunk routes in early 1987. The announcement also ensured the survival of Newmans Air which has been flying two turbo-prop aircraft on tourist routes since March 1985. “I’m over the moon,” said the chief executive of the Newmans Group, Mr Rex Loach. “It’s great news.” The airline’s manager, Mr Ken McDonald, said he was elated. “We have been through an anxious time, but it has been worthwhile. Our intention is to provide an airline service second to none,” he said. Had the plans for expansion failed, Newmans Air would not have survived. The Government was told quite bluntly that the company’s 142 employees faced redundancy if the consortium lost the backing of Ansett.
At the end of August it was announced the new airline would start its main trunk services with three leased 107-seat Boeing 737-100s.
After much speculation it was confirmed on the 11th of November 1986 the new airline was to be called Ansett New Zealand. Ross Keenan said the name “fully reflected” the commitment to establish a New Zealand company by the partners. Ansett of Australia has a 50 per cent holding in the consortium which will compete with Air New Zealand on the main trunk domestic routes and with Air New Zealand’s subsidiary, Mount Cook Airline, on the tourist routes. It is expected, but not yet confirmed, that Ansett New Zealand will introduce three Boeing 737s with first-class and economy service between Auckland, Wellington, and Christchurch. The existing four-engine de Havilland Dash 7 aircraft flown by Newmans Air on the tourist route between Auckland and Queenstown, via Rotorua and Glentanner, will be replaced by faster twin-engine Dash 8 aircraft early next year. The consortium’s board has now made formal application for the construction of passenger terminals at Auckland, Wellington, and Christchurch airports. It is believed that the new airline will not take to the air until these buildings have been completed. This might not be until April or May. Mr Keenan said a colour scheme and logo which would further demonstrate the New Zealand emphasis on the airline, would be announced soon. Mr Keenan said that the terminal applications were specific examples of Ansett New Zealand’s investment in the future of New Zealand’s aviation infrastructure. Ansett New Zealand, Mr Keenan said, sought urgent approval for the construction of the three terminals.
Ross Keenan defended the airline consortium’s choice of name and dismissed suggestions that Newmans Air would lose its identity. Newmans and Brierley — the two New Zealand partners in the consortium — wanted to retain “Newmans” in the name of the domestic airline, according to informed sources. He said that the Newmans identity would be retained on the new de Havilland Dash-8 aircraft which would fly the tourist routes. These would initially carry the name “Ansett-Newmans” and retain the Newmans now familiar Pegasus symbol on the tail fins. “Newmans Air will provide an excellent base on which to build the enlarged airline. Its strength must be preserved at all costs,” Mr Keenan said.
On the 30th of November Ansett New Zealand was granted a full Air Service Transport Licence, taking over the operation of Newmans Air.
Due to commercial sensitivity, only a few more details of the new airline were released on the 9th of December. Ross Keenan would confirm only that, there will be “at least” three Boeing 737s offering two classes of travel and a high level of service both in the air and on the ground. The aircraft will be white with a colourful stylised version of the four stars of the New Zealand flag on the tail fin. “Ansett New Zealand” will appear in bold blue letters on both sides of the fuselage. The start-up date hinges on approval being given for its new airport terminals at Auckland, Wellington and Christchurch. The airline could be flying early next year before the terminals are completed. The terminals will incorporate special lounges catering in particular for business travellers.
The Press reported Ansett New Zealand’s “new” Boeings on the 5th of February 1987. Four early-model Boeing 737 jets have been marked for Ansett New Zealand’s Auckland-Wellington-Christchurch service, planned to start in June. According to informed sources, the aircraft were purchased recently by Ansett Worldwide Leasing, Ltd, from a North American airline, American West. They were bought specifically for use in New Zealand by the Ansett - Newmans - Brierly consortium and are being repainted in the Ansett New Zealand livery at Melbourne. All four were originally owned by the German airline, Lufthansa. One will be of special interest to aviation buffs — it was the first B737 to enter commercial service. It was first flown by Lufthansa on February 10, 1968. The jet was one of 21 ordered initially by the German airline and was the second to roll off the production line in Seattle (No. 1 did not enter commercial service). Two of the other B737s purchased by Ansett were the fourth and fifth out of the factory. The fourth aircraft is a later model.
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| The Press, 2 June 1987 |
Delays in the construction of the new Ansett New Zealand terminals pushed out the start date of the main trunk services from early 1987 to July. Meanwhile, the first Boeing 737 arrived in Christchurch on the 27th of April 1987. Arriving in American registration Boeing 737-130 N730AW having flown from Seattle via Hilo (Hawaii) and Pago Pago (American Samoa). Ironically it was an Air New Zealand tractor that towed the jet from the terminal to Ansett’s hangar, Ansett’s tractor having been “chopped up by the propellers of a runaway Dash 8 during an engine test run outside the hangar” a few days before. N730AW was placed on the New Zealand aircraft register as ZK-NEC on the 12th of May 1987. It was to be named “City of Christchurch” and was registered to Bilmans Management Ltd of Christchurch. Bilmans Management Ltd was the company that operated as Ansett New Zealand. 50% of its shares were held by Ansett, 27.5% with Brierley and Newmans holding 22.5%.
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| The first jet, Boeing 737-100 N730AW which became ZK-NEC on arrival at Christchurch on 27 April 1987. Photo : M Beaven |
At the beginning of May Ansett New Zealand announced that they would operate five Auckland-Wellington-Christchurch flights each weekday along with a weekday direct flight between Auckland and Christchurch. Another three direct Christchurch-Auckland flights were to be added to the weekday timetable from the 1st of October. At this time weekend schedules were still being determined. The airline announced that it would continue to use the Dash 8 aircraft on the tourist routes, except for the Rotorua-Auckland service with a new Dash 8 service between Rotorua and Wellington also beginning in July.
The second Boeing 737-130 arrived in Christchurch on the 18th of May 1987. N701AW was placed on the New Zealand register as ZK-NEA on the 27th of May and was named "City of Auckland." ZK-NEA was the first Boeing 737 to enter commercial service flying with Lufthansa in early 1968. Ahead of the launch of Ansett New Zealand the third 737, arrived on the 25th of June and was placed on the register as ZK-NEB on the 13th of July 1987 and named "City of Wellington."
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| Boeing 737-100 N701AW had officially became ZK-NEA when this photo was taken at Christchurch on 30 May 1987, but was still awaiting its New Zealand registration being applied |
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| Before the launch, Ansett New Zealand Boeing 737-100 ZK-NEA at Christchurch on 23 June 1987 |
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The Press, 27 June 1987 |
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| Ansett New Zealand branding on the timetable effective 1 February 1987 with the previous Newmans Air colours and titles on the Dash 8 which it never wore. |
Ansett New Zealand commenced main trunk flights began on the 25th of July 1987 with little fan fare. The Press gave only a brief page 7 coverage to the new services on the 27th. The flight time from Christchurch to Wellington is barely 30 minutes. On Ansett New Zealand’s first flight there on Saturday, cabin attendants served 50 passengers with trays of refreshments and drinks and had the lot cleared away with 10 minutes to spare. Passengers on the flight spoke highly of the service and the new terminal facilities. The airline’s first commercial flight took off for Auckland about 7.30 a.m. with an almost full load. Travel agents and journalists were among guests on the Inaugural flights. The airline is using its near-complete terminal at Christchurch Airport and its airbridges. The operations manager In Christchurch, Mr Ken McDonald, said last evening that everyone was “extremely pleased”
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| Ansett New Zealand's first main trunk timetable, effective 25 July 1987 |
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| First day cover for the launch of Ansett New Zealand |
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| Ansett New Zealand's full timetable, effective 25 July 1987 |
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| The Press, 27 July 1987 |
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| The Press, 27 July 1987 |
Four weeks later, on the 22nd of August Ansett increased its main trunk schedule between Auckland, Wellington and Christchurch six weeks ahead of the company’s previous plans. Forty-five extra flights a week were offered taking seat availability from 15,000 seats per week to 19,000. Ansett New Zealand’s chief executive Ross Keenan said, “We at Ansett New Zealand are delighted with the enthusiastic response from the travelling public.” he said. To facilitate this expansion Boeing 737-112 ZK-NED, “City of Nelson” was registered on the 27th of July 1987.
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| Two of the 100 series Boeing 737s, ZK-NED at Christchurch on 23 December 1987 |
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| Boeing 737 ZK-NEB at Christchurch on 28 August 1988 |
The arrival of Ansett New Zealand brought a number of innovations on domestic air services and caused Air New Zealand to introduce their own responses. Air fares dropped and the use of promotional fares by both airlines led to an increase in the number of people flying and frequency of services. The domestic terminals at Auckland and Christchurch were finally finished on the 31st of August 1987. Prior to this the airline had been working around builders and contractors who were completing the interiors of the terminals. The Wellington terminal had been finished in time for the start of the airline’s main trunk services. New features of the terminals were the Golden Wing lounges and air bridges. Meanwhile, in late August, Ansett New Zealand sought approval to serve liquor on its Boeing 737 and DHC Dash 8 services. The application was filed with the Licensing Control Commission for “six ships’ liquor-licences”, the serving of alcohol being illegal on domestic flights at this time. On the 29th of August Ross Keenan was reported as saying there had been substantial growth in air travel and many of the new passengers were travelling on promotional fares. "This totally destroys the Air New Zealand view that the market would not grow as a result of competition," he said. Mr Keenan would not disclose Ansett's Passenger loadings, but he said its aircraft were flying much more than half full. The airline had put 15,000 seats a week on the market and it was to increase that figure by 4000 today.
At the beginning of September Ansett's Ross Keenan told the Sunday Star he is happy with high load factors on most services. We are finding that some flights are real winners, others not up to expectations. "We are still in the learning days, identifying areas that need attention. We are finding out businessmen's habits and preferences, juggling frequencies and schedules to suit demand. "It's a constantly changing market and we're trying to be more right sometimes than at others." Mr Keenan says Ansett will spend its first six months of operation consolidating its position before, looking at expansion. "We've got to look at more capacity -perhaps a fifth 737, or even a bigger aircraft. And we've got to look at serving other ports. "The market is saying it wants single-carrier convenience. They are saying they like what we're doing, but we're not doing enough. "We've been accepted and our pro-duct is being supported more than we anticipated. "This support will be sustained, so we must provide more product. Our problem now is a nicer problem than to have the alternative of poor support and low loads." Keenan says the post-Ansett growth "belies the silly statements (by Geary) that the market is not big enough for two."
The arrival of Ansett had seen the introduction of a two-class cabin on domestic flights and full in-flight meals. In late September 1987 Ansett New Zealand sought a liquor licence for its four Boeing 737 and two de Havilland Dash 8 airliners. To comply with the Sale of Liquor Act the airline dubbed its planes ships. The Act allowed serving liquor to passengers on ships while conveying them within New Zealand. It did not mention aircraft, but suggested the Licensing Control Commission, which was to hear the airline’s application should consider the interest of air travellers when granting licences. Ansett New Zealand’s general manager for corporate services, Graeme Campbell, said the airline planned to offer a full bar service on its flights. The Commission, however, dismissed the argument saying, “We are not in this instance remotely in the field of speculation.”
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Advertising from the Ansett New Zealand timetable effective, 1 October 1987 |
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| Ansett New Zealand De Havilland Canada Dash 8 ZK-NEY, 'Queenstown' departing Glentanner on 19 September 1987 |
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| De Havilland Canada Dash 8 ZK-NEZ, with Ansett New Zealand titles and the Newmans' Pegasus logo at Queenstown on 24 October 1987 |
On the 22nd of February 1988 it was announced that Ansett New Zealand was to pass into overseas hands “for at least the next two years.” The Minister of Finance, Mr Douglas, and the Minister of Transport, Mr Jeffries, announced that Ansett Australia would be allowed to increase its present 50 per cent stake in the local airline, possibly to as much as 100 per cent. Mr Douglas and Mr Jeffries said Ansett Australia's increased stake in the local airline would take the form of a capital injection to enable it to buy more aircraft and extend its services beyond the existing Auckland - Wellington Christchurch triangle. Services will extend to Dunedin "in the second half of this year," and later to Hamilton, Palmerston North and Invercargill. In response Air New Zealand described the move as "a second bailout" of Newmans, after the "failure" of its earlier Newmans Air venture. "Ansett totally misread the market and is now being given special and preferential treatment by the New Zealand Government," Air New Zealand said in a statement. "The Government is interfering with the normal process of competition, and this can only result in additional excessive investment. We can only repeat yet again that ultimately the consumer will pay more." The airline also noted that the move would obviously have an impact on the Government's plans to sell 25 per cent of its shares in Air New Zealand.
From the 6th of March 1988 Ansett New Zealand introduced Boring 737 flights between Rotorua and Christchurch. The following day the Press reported on the first flight. Rotorua turned on a wet and grey; welcome for its first scheduled jet air service yesterday. Umbrellas were thrust into the hands of passengers as they left the Ansett New Zealand Boeing 737 which touched down shortly before 1 p.m. after a one-hour flight from Christchurch. Air traffic control delays, including a 12-minute wait in a queue for take-off caused the aircraft to arrive 30 minutes late. The rain was so persistent at Rotorua that a formal Maori welcome had to be transferred from the tarmac to inside the terminal building. Nevertheless, about 250 people gathered to watch the jet sneak out of the clouds and land with a third of the runway to spare.
Although the B737 s have cut by half the flight time of the smaller; turbo-prop aircraft, the limited length of Rotorua's runway has forced a restriction on the number of passengers that can be carried - 70 instead of the usual 100. This, however, is still about twice the number that can be carried in the de Havilland Dash-8s. The Mayor of Rotorua, Mr John Kearney, who was a guest on the inaugural flight, welcomed the jet link which, he said would benefit tourism in both Rotorua and the South Island. It is now expected to be only a matter of time before Air New Zealand follows Ansett's move and introduces one of its jets to Rotorua. Ansett New Zealand’s chief executive, Mr Ross Keenan, said his airline would now be able to increase its frequency between Christchurch and Queenstown. A third daily service would be introduced soon, he said, and the schedule would be increased to four flights a day in October.
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The Press, 4 March 1988 |
Two further Boeing 737s were added to the Ansett fleet in July 1988. ZK-NEE and ZK-NEF were both 200 series Boeing 737s. ZK-NEE, "City of Manukau" was registered to Bilmans Management Ltd on the 13th and operated its first Ansett New Zealand revenue service between Christchurch and Auckland on the 17th of July. ZK-NEF, which was not named, was registered on the 19th of July and operated its first Ansett NZ service between Christchurch and Wellington on the 24th. ZK-NEF was no stranger to New Zealand having previously operated by Polynesian Airlines on their services between Auckland and Samoa.
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| Ansett New Zealand's two 200 series Boeing 737s... ZK-NEE at Christchurch on 28 August 1988 |
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| and ZK-NEF, still in American West colours, at Christchurch on 22 October 1988 |
On the 14th of October it was announced that Ansett New Zealand it had placed an order for British Aerospace 146-200 “whisper jets” for March 1989 delivery. The deal with spares and tooling was worth about $80 million. Ansett said that while the 75-seat four-engine jets will be used on all Ansett routes, they were chosen specifically with Queenstown in mind, because of their high performance and low noise.
Meanwhile Ansett New Zealand’s first-class service had not met the airline’s expectations with G. J. McMahon, Ansett’s general manager in Sydney, conceding that there had not been a big demand in New Zealand for it. From the 24th of October 1988 it was replaced with a much cheaper business class that was branded as "executive” class which cost only an extra $33, matching Air New Zealand’s Pacific class price.
On the 4th of December 1988 Ansett New Zealand extend its main trunk air service to include Dunedin. Twice daily Boeing 737 services linked Dunedin to Christchurch. As in the other main centres a dedicated terminal was built. Motor Holdings (Aviation) provided ground support for the initial flights including covering supervision, passenger handling, and ramp handling.
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The Press, 23 November 1988 |
On
the 18th of January 1989 Ansett New Zealand announced that it had selected British
Aerospace BAe 146-300 whisper jets to replace its Boeing 737 fleet. The
following day the Press reported that Ansett would take delivery of five BAe146-300s
at the end of this year. Two of the smaller series-200 models are scheduled to
begin flying on its tourist routes in June. The 300-series will carry 90
passengers and the 200s, 75 passengers, in business and economy class seating.
Ansett will introduce some scheduled non-stop jet services between Auckland and
Queenstown, allowing tourists to get to New Zealand’s most popular resort town
without losing time in transit in Christchurch. Ansett’s chief executive, Mr
John Buchanan, told a press conference that the four-engine jets would
introduce new standards in passenger comfort with spacious five-abreast seating
and unobstructed views from its high-wing configuration. It was considerably
less noisy than any other jet airliners in New Zealand. It was also quieter
than many turbo-prop planes, including the F-27 and Hawker Siddeley 748. The
airline will employ extra flight attendants and — if it decides to keep its two
Dash-8 turbo-prop aircraft — about 20 additional pilots. Mr Buchanan said the
future of the Dash-8s would depend on what Air New Zealand decides to do with
its provincial routes. He confirmed that Ansett was still not making a profit
but he said that the airline was now earning about 30 to 35 per cent more
revenue than it was a year ago. “We are certain the introduction of the whisper
jets will be welcomed by those communities where noise is an issue,” said Mr
Buchanan.
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| Ansett New Zealand Boeing 737-100 ZK-NEC at Christchurch on 25 February 1989 |
In March 1989 Ansett confirmed their intention to retain their two De Havilland Canada Dash 8s which they had initially planned to sell following the delivery of their BAe 146s. “The Dash-8s are only two years old and are state of the art aircraft,” said the chief executive, Mr John Buchanan, “They represent the latest technology and offer significant advantages over other turbo-prop aircraft. The New Zealand market is changing and there are some exciting possibilities opening up for us.” Among these were increase in frequencies and the possibility of new routes
In April 1989 the New Zealand Government was looking at selling Air New Zealand. Ansett Transport Industries Ltd, Sir Peter Abeles, was alarmed at this possibility. Sir Peter said the Government, having given Ansett initial assurances of equal access to the entire New Zealand domestic market, had decided to sell Air New Zealand without consideration of Ansett or its customers and 850 staff. Ansett would be forced to withdraw its services unless the Government gave it "a fair go." Ansett fears the loss of flow-on tourist passengers from incoming flights of Qantas, Japan Air Lines and American Airlines which could lead to a $20 million drop in annual revenue. The three airlines are among the buyers of Air New Zealand, the consortium also including Brierley Investments.
The Minister of Transport, Mr Jeffries dismissed Ansett airline's grounds for its threat to quit New Zealand, and effectively told it to seek help from the Australian Government. He revealed last night that Ansett's joint managing director, Sir Peter Abeles, had told the Government three weeks ago the New Zealand airline was in trouble and would need help to survive. The Government rejected the airline's bid to secure some of Air New Zealand's share of the trans-Tasman aviation rights. Mr Jeffries suggested last night that Ansett was looking for excuses for its commercial difficulties, using a Commerce Commission ruling on the takeover of Air New Zealand by a Qantas-led consortium. But he made it clear he would not be pressured by Ansett's unhappiness with the Commerce Commission's decision, into giving away Air New Zealand's trans-Tasman flying rights. The Commerce Commission had "rejected the view that the sale would constitute a substantial risk to Ansett's operations."
A couple of days later the chief Executive of Brierley Investments, Ansett's original partner in its New Zealand operations, Mr Paul Collins, has said the airline's claims are not realistic. "I think the involvement of Ansett in the New Zealand aviation industry has been tremendous for the travelling public,' Mr Collins said. "But the simple reality is that Ansett New Zealand is losing very large sums of money. They are losing the best part of $750,000 a week." Mr Collins said Brierley's had sold out of Ansett because, from a financial point of view, it was best to do so. His company still supported the concept of two major airlines in the country but doubted that Ansett would have chosen to contest the New Zealand market in today's financial climate.
May 1989 saw the announcement of further regional services. Ansett New Zealand announced that from the 30th of July it would add an additional Christchurch to Dunedin service as a well as introducing Invercargill to the network with twice daily De Havilland Canada Dash 8 services from Christchurch, in the morning and early evening. It was also announced that Ansett New Zealand would introduce thrice daily flights between Auckland and Palmerston North as well as a daily service between Christchurch and Palmerston North. Chief executive Mr John Buchanan said the extension of services was a further statement by Ansett on its commitment to development of air services in this country.
Later in the month it was announced that Ansett had partnered with Rex Aviation and intended to operate Nelson-Wellington flights from the 2nd of July 1989. The announcement said 18-seat Embraer Bandeirante aircraft would fly five return flights on weekdays, two on Saturdays and four on Sundays. Nelson mayor Peter Malone told the Nelson Evening Mail, the new Ansett-Rex Aviation service to Wellington will mean Nelson has a better service in and out of the city than any other provincial centre in New Zealand. "If airlines compete against each other it can only be to the good of the Nelson travelling public." He didn't believe the increased number of flights would generate much more traffic on the route, but would just create more competition, especially in the initial period. Ansett was fitting in with the Government's policy of free enterprise deregulation and competition. "I can only hope that they don't shoot each other in the feet," he said.
The Rex Aviation operation operated under the name Tranzair and more on the service can be found here : https://3rdlevelnz.blogspot.com/2019/01/the-tranzair-franchise.html
In the light of the Commerce Commission’s the 9th of April approval of the takeover of Air New Zealand by a consortium of Brierley Investments, Ltd, Qantas, Japan Air Lines and American Airlines, Ansett New Zealand gave the Government an ultimatum - give it a “fair go” or it quits this country in 10 days. The joint managing director of Ansett Transport Industries, Ltd, Sir Peter Abeles, said from Australia that the New Zealand Government had been given 10 days to provide some relief for Ansett to off-set the commission’s decision. If this did not come “we will be forced to withdraw our services.” Ansett’s chief concern was that Qantas, Japan Air Lines, and American Airlines fed international passengers into their domestic services. They feared that the new ownership would divert passengers away from Ansett. At this time Qantas and Ansett had an arrangement to feed passengers into each other’s networks for 21 months. Meanwhile, the Minister of Transport, Mr Jeffries, had an equally uncompromising response to the airline late last evening. “If they have struck difficulties that is their problem. They knew what they were doing when they came in,” he said. “It is not this Government’s fault that Ansett has encountered difficulties. They don’t want to admit that. But that is the fact of the matter.” Eventually, through some Government intervention, Qantas agreed to keep feeding passengers into Ansett for 5 years.
On the 2nd of May 1989 Ansett New Zealand announced that it had ordered an eighth BAe146 “whisper jet” QC (quick change) aircraft for October delivery. The aircraft was to be used for passenger flights during the day and freight at night.
On the 19th of July 1989 Ansett New Zealand’s first British Aerospace BAe 146-200, ZK-NZA, arrived in Christchurch after its ferry flight from Hatfield in the UK via Belgrade, Larnaca, Dubai, Muscat, Bombay, Madras, Penang, Denpasar, Darwin and Brisbane. The whisper jet made a promotional flight from Auckland to Queenstown on the 29th of July before entering service on the 30th. With the arrival of the new jet Ansett New Zealand announced that a new non-stop whisper-jet service between Auckland and Queenstown would be launched in October. These direct flights never eventuated. On the 30th Ansett New Zealand also began new services between Auckland, Palmerston North and Christchurch, and between Christchurch and Invercargill.
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| De Havilland Canada Dash 8 ZK-NEZ at Palmerston North on 31 May 1989. Photo : B Kerr |
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The Press, 31 July 1989 |
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| Ansett New Zealand's first short-version British Aerospace BAe 146-200 ZK-NZA at Dunedin on 16 September 1992 |
The arrival of the whisper-jet into Queenstown also marked the end of Ansett New Zealand’s De Havilland Canada Dash 8 services to Mount Cook Glentanner on the 29th of July 1989. The daily Christchurch-Glentanner-Queenstown Dash 8 service was replaced by direct whisper-jet flights between Christchurch and Queenstown.
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| De Havilland Canada Dash 8 ZK-NEZ at Glentanner on 16 April 1988. Note the lack of terminal facilities |
While
the arrival of the first Whisper Jet was positive news for Ansett New Zealand
the airline still faced major financial woes losing about $6 million in the
previous 12 months. Ansett New Zealand’s chief executive John Buchanan was
reported in the Nelson Evening Mail of the 31st of July 1989 saying that the
airline's biggest mistake was starting up, Mr Buchanan joked. But he told a
weekend newspaper it had been hit hard by the October 1987 share market crash
just three months after its first flight, and Air New Zealand had responded far
more competitively than anyone had expected. Mr Buchanan was brought out of
retirement a year ago. He has been described as Ansett's saviour and has
reshaped the airline's management and direction. His hopes are pinned on the
new fleet of British Aerospace 146 "whisper jets" and an expanded
route structure. with increased frequencies. "We'll still lose some money
but that would have happened anyway" he said, "Re-equipping always
means financial indigestion... new planes and retraining and the like. We have
a lot of costs on this changeover. "We won’t make any money, but we expect
to lose less than last year."
Ansett New Zealand’s second British Aerospace 146-200, ZK-NZB, arrived in Christchurch on the 3rd of August 1989. Named ‘Rotorua’ it entered service on the 8th of August 1989. With the whisper-jet gaining the name ‘Rotorua’ it was necessary to change the name of De Havilland Canada Dash 8 ZK-NEZ and it was renamed ‘City of Invercargill.’
From the 20th of August Ansett New Zealand dramatically increased their main trunk flight frequencies with flights between Christchurch and Auckland increasing from 46 to 87 a week, between Christchurch and Wellington increasing by 15% to 101 a week and between Auckland and Wellington by 21% to 133 a week.
On the 21st of August Airlink, began commercial services between Christchurch and Timaru and Alexandra. While not part of the Tranzair franchise the airline worked in association with Ansett New Zealand. The new air service was not successful and ended 15 weeks later.
For more on Airlink see : https://3rdlevelnz.blogspot.com/2010/10/airlink-to-alexandra-for-15-weeks.html
The airline’s third whisper-jet, British Aerospace BAe 146-200QC ZK-NZC arrived in Christchurch on the 9th of October 1989 after its delivery flight from Britain. The “QC” (quiet convertible) was to fly 77 passengers on daylight flights, then convert in 20 minutes to a cargo-only aircraft for night freight flights. Delivered to New Zealand in British Aerospace livery it entered service in its British registration G-BPBT on the 16th of October 1989. It was placed on the New Zealand register as ZK-NZC on the 25th of January 1990 and later repainted in Ansett New Zealand colours in April 1990 being named City of Manukau.
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| British Aerospace BAe 146-200QC G-BPBT in its UK registration, British Aerospace colours and Ansett New Zealand titles, departing Christchurch on a scheduled service on 2 December 1989 |
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| The same aircraft, ZK-NZC, but now painted in Ansett New Zealand colours at Christchurch on 14 May 1992. Notice the windowless cargo door behind the wing. |
The arrival of the third whisper-jet saw the first removal of a Boeing 737 with 200 series ZK-NEE operating its final Ansett New Zealand revenue service from Auckland to Christchurch on the 31st of October 1989.
With John Buchanan’s stepping down after 16 months as Ansett New Zealand’s chief executive, on the 21st of November the Press reported some of his reflections on Ansett New Zealand’s development. Mr Buchanan says Ansett’s growth has been between 30 per cent and 40 per cent, tar outstripping domestic industry gains, although forward bookings for the next two months indicate 60 per cent more traffic than for the same period last year. “Revenues are well up on last year with the additional traffic and some costs are down. “With our new fleet of British Aerospace 146-200s and 300s in place, there will be substantial savings and we will be much better off financially,” he said. "The rest of the financial year should be very, very good.”
The turnaround can be attributed to Buchanan’s insistence on the BAe 146 to replace Ansett’s original fleet of embarrassingly aged Boeing 737-100 s which were among the first to roll off the Seattle production line. Originally ordered for re-equipment were five new Boeing 737-500s, but soon after he took over from founding chief executive, Mr Ross Keenan, Mr Buchanan convinced Ansett boss, Sir Peter Abeles, to go with the British “Whisper-jet.” “I’d always liked the 146,” he says. “I had looked at them when I was general manager of Airlines of New South Wales and was very impressed. “I persuaded the boss (Sir Peter) to buy two 146-200 s, then did a further study which resulted in cancelling the 737-500 orders and getting five 146-300s, avoiding a mixed fleet and getting better figures.” Mr Buchanan points out that the 146 operating costs are lower than the 737, it uses 15 per cent less fuel in spite of its four jet engines and being a lighter aircraft attracts lower Airways Corporation fees.
Ansett New Zealand is now operating its four Boeing 737-100s, two 75-seat 146-200s, two Dash-8 turboprops, and a 146-200QC on a six-month trial from the manufacturers. The QC Quick Change flies passengers by day and converts to a freighter for nightly cargo services between Auckland and Christchurch. A decision on buying the $30 million aircraft will be made when the trial ends in March. The old Boeings will be phased out as Ansett’s new 100-seat 146-300s are delivered between December 4 and the end of January — in time to carry the Queen and Duke of Edinburgh to Queenstown and Taupo during their 1990 Royal Tour. Ansett New Zealand will have half the trunk route frequency with the entire fleet in place, 43 per cent if it does not buy the 146-QC. With the five 737s, Ansett’s frequency share was 32 per cent, and traffic suffered, Mr Buchanan said. The airline will then operate 10 Auckland-Wellington flights and seven Auckland-Christchurch flights a day. With new aircraft, their enormous passenger appeal, and superior service, there is no reason why we should not get better than 50 per cent of the trunk traffic.”
A few days later, on the 25th of November the second Boeing 737-200 ZK-NEF operated its final revenue service between Wellington and Christchurch.
The first of Ansett New Zealand’s larger 300 series British Aerospace BAe-146 whisper-jets ZK-NZF arrived in Christchurch on the 10th of December 1989. Named ‘City of Wellington’ it operated its first Ansett New Zealand service on the 13th of December 1989.
In the weeks following the remaining four British Aerospace 146-300s arrived. ZK-NZG arrived on the 15th of December and entered service on the 17th as ‘City of Christchurch.’ ZK-NZI arrived on the 23rd of December and entered service of the 28th as 'City of Dunedin.' ZK-NZH arrived on the 3rd of January 1990 and entered service on the 11th as ‘City of Auckland.’ ZK-NZJ arrived on the 24th of February 1990 and operated its first service on the 1st of March as ‘City of Nelson.’
The arrival of the whisper-jets saw the retirement from the fleet of the old Boeing 737-100s. ZK-NEB was withdrawn from service on the 13th of December, ZK-NEC on the 17th and ZK-NEA and ZK-NED on the 28th. ZK-NEA operated Ansett New Zealand’s last Boeing 737 flight. ZK-NED was kept as a spare aircraft if needed until the end of January 1990.
With the equipment programme completed Ansett New Zealand entered into a period of regional expansion in the early 1990s. In the NZ Herald on the 13th of February 1990 Sir Peter Abeles, managing director of Ansett New Zealand's Australian parent company, said he plans to boost the local fleet of jets this year to allow further expansion of routes and frequency. A big New Zealand engineering base will be established, probably in Christchurch, to service all British Aerospace 146s in Australia and New Zealand. Four more "whisper jets," already on order, will increase the number of BAe 146s in the New Zealand fleet to 12 by the end of the year. Sir Peter would not say which new areas would be served, but they will be in the North Island, with Napier, New Plymouth and Hamilton most likely. The introduction of more aircraft would in turn lead to a need for a large engineering base which would become the BAe 146 service centre for Australia and New Zealand. By the end of the year there will be more than 30 of this type of aircraft flying in the region. "I think what we have in mind will surprise the Government and others because it is going to be much more than they ever expected," he said. "We will be doing this not because it suits us. It would be presumptuous of me to say it will be built in Christchurch, but I would personally be in favour of the South Island because of its very stable work force," he said. Sir Peter conceded that Ansett's New Zealand operation has suffered substantial losses (estimated by some observers to have exceeded $55 million) over the past two years. "But we expected them," he said. "We knew it would take time to get our new product accepted - fortunately the airline has a very strong financial base." He would give no indication when the airline become profitable but added it would not be this financial year.
Following Air New Zealand withdrawing its Fokker Friendship services Ansett New Zealand introduced a number of new commuter routes in association with smaller commuter airlines. On the 5th of March 1990 Bell Air began a new relationship with Ansett New Zealand on its Whakatane-Auckland services whereby Ansett provided terminal services in Auckland, baggage handling, ZQ (Ansett) flight numbers, "through fares" to Ansett's destinations beyond Auckland, access to their reservations system and marketing support but continuing to operate under the Bell Air name. From the 9th of April 1990 Air Wanganui operated the Wanganui-Wellington route 3 days a week under the Ansett New Zealand’s commuter banner, Tranzair, banner. The service was short-lived. A week later, from the 16th of April, Northern Commuter Airlines operated a Whangarei-Auckland service with Piper Chieftain ZK-NCA which was painted in Tranzair colour scheme. Ansett also had a connection with Queenstown-based Waterwings Airways. The company was not formally part of Tranzair but operated flights connecting Te Anau and Milford Sound to Ansett New Zealand's services to and from Queenstown from 1987 to 1998. Cessna 207 and GAF N22 Nomad aircraft were used.
On the 2nd of June 1990 the NZ Herald reported Ansett New Zealand had an annual loss of $36.8 million to the end of June 1989 compounded to a $68.7 million loss since the start of operations.
From the 30th of June 1990 Ansett New Zealand introduced direct whisper-jet flights between Wellington and Dunedin.
Further regional changes occurred from the 30th of September 1990. Direct whisper-jet flights operated southbound from Rotorua to Queenstown, the northbound service operating via Christchurch. Also new Dash 8 flights were introduced from Rotorua to Wellington. The 29th of September saw the last Invercargill-Christchurch direct flights operated. Invercargill was left with a daily morning whisper-jet service to Dunedin allowing connections to Christchurch or Wellington with the return flight operated in the evening. On the commuter operations Tranzair commenced flying between Wellington and both Blenheim and Palmerston North using Embraer Bandeirantes. At the same time Ansett New Zealand Dash 8s operated a twice daily service from Wellington to Nelson a weekday service between Wellington and Palmerston North. At the same the direct Christchurch-Palmerston North Dash 8 service was cut.
In terms of air freight operations Rex Aviation also inaugurated a freight service from Wellington to Blenheim, Nelson and Christchurch on behalf of Ansett Air Freight. Two Cessna 208 Caravans were added to the fleet, ZK-REY in September 1990 and ZK-REZ in November 1990. Fokker Friendship ZK-RTA arrived in November 1990 and this operated scheduled cargo services for NZ Post between Wellington and Christchurch six days a week. The Friendship was also used, as needed to Blenheim and Nelson. All these aircraft wore Rex Aviation titles but by early 1992 the Fokker Friendship freighter had its Rex Aviation titles replaced with Ansett Air Freight titles. Meanwhile the BAe 146-200QC ZK-NZC was used to operate a Monday to Thursday Auckland-Christchurch return service for Ansett Air Freight.
For more on Ansett New Zealand freight operations see : https://3rdlevelnz.blogspot.com/2019/01/rex-aviations-tranzair-and-freight.html
In mid-February 1991 the Ansett joint chairman, Sir Peter Abeles, confirmed, "We are here to stay." Losses on Ansett New Zealand were exceeding forecasts and plans for the airline to go international were on hold. In the last June year, Ansett New Zealand had a $43.8 million loss, bringing to $98 million the accumulated losses since the airline started in 1987. Asked when it would attain profitability, Sir Peter said: "I hope tomorrow, but the reality is that it will be some time." Ansett had expected losses in the first "few years" of operation but these had been compounded by economic recession. The New Zealand airline is a subsidiary of Ansett Australia, which is owned equally by partners TNT and News Corporation. Ansett New Zealand's financial performance would be improved when the benefits of re-equipping with BAe146 "whisper jets" were felt and it was now near a target share of the domestic traffic market of 40 per cent.
On the 5th of May 1991 Astral Air Services began operating scheduled services between Napier and Auckland and Napier and Wellington using 3 Dornier Do228s under the Tranzair banner. The unpressurised aircraft which were no competition for the pressurised aircraft operated by Air New Zealand Boeing 737s and Air Nelson Saab 340s and the airline closed 53 days later.
For more information on the Astral Air Services operation see : https://3rdlevelnz.blogspot.com/2019/03/dorniers-over-hawkes-bay-astral-air.html
Ansett New Zealand’s results in the year to the 30th of June 1991 showed it had made some progress in slowing its loss-making trajectory by cutting its loss before tax to $19.26 million in the June 30, 1991 year. This was down on a loss of $43.8 million posted in the June 1990 year which then took the airline's accumulated losses since it started in 1987 to $98 million. In addition, an abnormal taxation write-off of $29.76 million was brought to account in the 1990-1991 year, being the write-off of accumulated deferred tax benefits for previous years. The directors said that while the result was not as satisfactory as expected, they had been encouraged by the significant improvement in the performance of the airline. They said further operating loss improvements were expected as the airline continued to increase market penetration.
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| British Aerospace BAe 146-200 ZK-NZB at Dunedin on 9 October 1991 |
1992 saw the introduction of two more British Aerospace BAe146-300s previously operated by East West Airlines in Australia. ZK-NZK, City of Invercargill, arrived from Australia on the 26th of January 1992. It did a promotional flight to Invercargill on the 8th of February 1982 before entering service on the 10th flying from Christchurch to Rotorua as ANSETT 884. Invercargill was giving an increased schedule from the 9th of February with two direct services being operated to Invercargill from Christchurch in addition to the flight via Dunedin. From the 9th of February the airline was operating direct weekday whisper-jet flights from Auckland to Christchurch 8 times a day, to Dunedin 3 times a day, to Queenstown 2 times a day and to Wellington 12 times a day. From Christchurch there were direct weekday whisper-jet flights to Dunedin, 4 times a day, to Invercargill 2 times a day, to Queenstown 2 times a day, to Rotorua 2 times a day (1 southbound – the other operating direct to Queenstown) and to Wellington 8 times a day. There was also one direct weekday flight between Dunedin and Wellington.
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| A couple of BAe 146-300 whisper-jets at Dunedin, ZK-NZK on 12 September 1992... |
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| and ZK-NZJ on 17 September 1992 |
A second whisper-jet, ZK-NZL, arrived in Christchurch on the 24th of July 1992. Named ‘City of Rotorua’ it entered service on the 2nd of August flying from Christchurch to Wellington as ANSETT 736. ZK-NZL saw the departure of British Aerospace 146-200 ZK-NZB from the fleet. It departed New Zealand on the 3rd of August on delivery to Ansett WA in Australia.
The
remainder of 1992 saw little change in the airline, but late in the year the
direct Rotorua-Queenstown southbound service was changed to operate via
Christchurch.
1993 started with the news that Ansett New Zealand had lost another $33,284,000 in the year to the 30th of June 1992. The Ansett New Zealand general manager, Mr Gary Smith, said that could still be some years away. "We are not isolated. We live in the same vacuum as the rest of the New Zealand economy. We are dependent on the domestic earnings. We are dependent on the New Zealand economy getting a kick start," he said. "Some things we have influence over and some we do not," he said, pointing to a $9 million cut in the deficit over the previous year. The New Zealand economy is improving, but mainly for export industries. Analysts say it could be two years, or more, before there is tangible commercial evidence of domestic recovery. "The inbound tourism has shown a very modest increase," Mr Smith said. "The target of three million tourists for New Zealand by the year 2000 is very ambitious a lot of hard work needs to be done by all the players, including our-selves. "In the domestic [airline] market, there is no growth in the market at all. "We share the same optimism as others that 1993 will be better than 1992. It is something we have a reasonable expectation of." The airline was showing double-digit growth in revenue, which was satisfying in a static or declining market, he said.
An unusual aircraft on Ansett New Zealand routes in early 1993 was East West Airlines’ De Havilland Canada Dash 8 VH-XFU which operated services for Ansett New Zealand – It operated its first flights, ANSETT 854 from Christchurch to Wellington and Rotorua on the 24th of January and was used by the airline until the end of February while Ansett New Zealand’s own Dash 8s underwent heavy maintenance.
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| Leased from Flight West Airlines, De Havilland Canada Dash 8 VH-XFU at Nelson on an Ansett New Zealand service on 26 January 1993. Photo MRC Aviation |
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| Boarding pass for my only flight in an Ansett New Zealand BAe 146 whisper jet, ZK-NZK, from Auckland to Christchurch on 11 February 1993 |
The end of financial year to the 30th of June 1993 saw Ansett New Zealand post a further $37.2 million loss taking its total losses to nearly $190 million since it began operating in 1987. The directors were disappointed with the result, said a statement issued on Saturday. But growth in revenue of over 10 per cent in the year ended June was cause for optimism. An airline spokesman, Mr John Cordery, said increased patronage was responsible for the growth. And it included for the first time the full annual cost of the ninth BAe 146 aircraft introduced in February last year.
A year on, at the time of their financial reporting, Ansett New Zealand was talking about being "cash positive." The airline's overall load factor had increased to 70 per cent, from 59 in the previous year, as the number of passenger kilometres flown rose 17 per cent. Overall, there had been a levelling of losses and the airline reported a loss of $10.4 million for the year ended the 30th of June 1994.
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On the 30th of November 1994 Ansett New Zealand announced it was changing its livery.
This saw the stars of the New Zealand flag disappearing and being replaced by the 'Starmark' livery which was also used by Ansett Australia. It combined the Southern Cross on the tail of aircraft, a stylised 'A' acknowledging Ansett's 1960s scheme and the federation star of the Australian flag.
On the 14th of January 1995 British Aerospace 146-300 VH-EWJ was ferried to Christchurch for service with Ansett New Zealand. The aircraft entered service in its Australian registration until it was placed on the New Zealand civil aircraft register as ZK-NZM on the 17th of February 1995.
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| In Australian registration and the Starmark scheme, British Aerospace 146-300 VH-EWJ at Christchurch on 24 January 1995. Photo : M Beaven |
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| British Aerospace 146-300 ZK-NZI at Christchurch on 13 November 1995. |
Joining the Ansett New Zealand fleet in January 1995 was another British Aerospace BAe 146-300 which arrived in the new livery on the 14th. It was placed on the New Zealand register the following month as ZK-NZM and named 'Queenstown.'
A second aircraft joined the fleet on a short-term lease in March. De Havilland Canada Dash 8 arrived in Auckland on the 15th becoming ZK-NEW. In mid-April 1995 Ansett New Zealand started a daily except Saturday service between Christchurch and Nelson. At the same time Dash 8s a direct Dash 8 flight between Christchurch and Palmerston North was reintroduced. This led to all flights between Wellington and Palmerston North being operated by Tranzair Embraer Bandeirantes.
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| De Havilland Canada Dash 8 ZK-NEW at Christchurch on 28 August 1995 |
In the first half of 1995 News Corporation Ltd was in negotiations with New Zealand about selling its 50 per cent stake in Ansett Australia. At the same time News Corp was negotiating details of a management agreement between Ansett's other parent, TNT Ltd, and Air New Zealand in order for the sale to proceed. Newspaper coverage reported that the fate of Ansett New Zealand would also have to be decided. Ansett's New Zealand arm could be turned into an independently controlled venture at arm's length from the parent board to satisfy the Commerce Commission that competition would continue. The alternative would be a sale of Ansett New Zealand, which might open the door for Qantas Airways to move into trunk routes in New Zealand, said the newspaper.
The prospect of Ansett New Zealand being sold to either Air New Zealand or Qantas was problematic for the Consumers Institute in New Zealand, The chief executive, David Russell, said that either option bore little hope of better services for the average New Zealander. He thought Air New Zealand was unlikely to be able to persuade the Commerce Commission that its purchase of Ansett New Zealand would not give it a lucrative monopoly. Air New Zealand has argued that it will maintain Ansett's independence, but Mr Russell was sceptical of such promises. Ideally, he said, Ansett could be sidelined or sold to another company completely. Qantas ownership, probably the more likely and more acceptable of the two options for the Commerce Commission, would probably lead to cutbacks in provincial services. "All we can do is hope and pray there will be sufficient smaller airlines that are going to provide a competitive service to the other provincial centres," said Mr Russell.
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Tragedy hit the airline on the 9th of June 1995. De Havilland Canada Dash 8-100 ZK-NEY was operating Ansett New Zealand flight 703 from Auckland to Palmerston North with three crew and 18 passengers. The flight proceeded normally commencing a VOR/DME approach over the Tararua Range on descent into Palmerston North. On the instrument approach the undercarriage was lowered but the main right the aircraft's right main landing gear failed to lock. The captain elected to continue the approach as the he and his First Officer sought to resolve the undercarriage problem. Five seconds after the ground proximity warning system sounded the aircraft struck the Tararua Ranges. Sadly, the flight attendant and three passengers were killed.
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| The ill-fated DHC Dash 8 ZK-NEY at Wellington in the Starmark colour scheme on 11 February 1995. Photo : M J Richardson |
Following the tragic loss of ZK-NEY another De Havilland Canada Dash 8 was leased. VH-XFU had previously been used by Ansett New Zealand. It arrived on the 28th of June 1995 and was placed on the New Zealand aircraft register as ZK-NEV, operating its first Ansett New Zealand service of the 15th of July. It was operated on Ansett New Zealand services until the 20th of December 1995 when it was replaced by another De Havilland Canada Dash 8 ZK-NEU which was named 'City of Invercargill.'
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| De Havilland Canada Dash 8 ZK-NEV 17 September 1995 |
Meanwhile Ansett New Zealand reported its first profit in 1995 with a $2.6 million operating profit for the June year. Ansett New Zealand chief executive, Mr Rick Ellis, said revenues were now approaching $250 million. Nearly two million passengers were carried in the last year.
A further rebranding occurred on the 29th of February 1996 when Tranzair was renamed Ansett New Zealand Regional. Initially Ansett New Zealand Regional used the Embraer Bandeirantes Tranzair had operated but these were later replaced with British Aerospace Jetstream 32s.
For more on Ansett New Zealand Regional see : https://3rdlevelnz.blogspot.com/2019/01/the-ansett-new-zealand-regional.html
In January 1996 a preliminary report from the Commerce Commission gave a thumbs down to Air New Zealand's bid to buy into Ansett Holdings. The commission chairman, Dr Alan Bollard, said, the acquisition would result in the acquisition or strengthening of dominance in domestic passenger markets. And the potential for higher air fares, fewer flights and worse service, outweighed the benefits Air New Zealand had claimed. Air New Zealand had proposed to ring fence Ansett New Zealand's management as a means of preserving it as a competitor.
In February 1996 Dash 8 ZK-NEW departed the fleet and returned to Flight West in Australia at the end of its lease. Its departure was facilitated by the arrival of De Havilland Canada DHC-8 Dash 8 ZK-NET on the 1st of February 1996. ZK-NET was named 'City of Nelson.' A second De Havilland Canada DHC-8 Dash 8 arrived on the 5th of April 1996. Becoming ZK-NES and named 'City of Palmerston North.'
The arrival of ZK-NES arrival enabled Ansett New Zealand to add Hamilton to its network with thrice daily Dash 8 flights to and from Wellington beginning on the 13th of April 1996. On that day a new terminal was blessed and the first flight was made under the command of Captain Stuart Graham and First Officer Jeromy Adair with Keitha Parkes looking after the cabin. An Ansett spokesman said the decision to fly into Hamilton was made on the basis of expected economic buoyancy. To honour the new destination on the Ansett route structure De Havilland Canada Dash 8 ZK-NEZ was renamed ‘City of Hamilton.’
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| De Havilland Canada Dash 8 ZK-NEZ, City of Hamilton, wearing the colours of the Waikato rugby team at Christchurch on 30 May 1996 |
Ansett New Zealand made a further profit in 1996 with
reporting a $9.05 million profit in the June year. The chief
executive, Mr Kevin Doddrell, said cost controls, improved yield management
practices and increased passenger volumes were behind the rise. "The
number of customers we carried exceeded two million for the first time in our
nine-year history," he said. Mr Doddrell said he was confident that Ansett
could sustain the increase in operating profit but there were potential
pressures on revenues and operating margins. These included a levelling off in
the growth of overseas visitor numbers, potential air traffic controller
industrial action and environmental factors, such as the Mt Ruapehu eruptions.
"Moreover, the New Zealand air travel market will remain highly
competitive." Ansett's operations would be reinforced by expanded
Christchurch workshops late this year and another BAe 146 Whisper Jet.
Meanwhile Air New Zealand had announced a $550 million deal to buy TNT's half-share in Ansett Australia. To satisfy Commerce Commission concerns about competition, News Ltd, the other Ansett Australia owner, became the full owner of Ansett New Zealand.
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| De Havilland Canada Dash 8 ZK-NEU on a charter to Hokitika on 9 August 1996 |
The Christchurch-Nelson service didn't live up to expectations and was removed from the schedule by September 1996. The latter half of 1996 also saw the introduction of a new Auckland-Rotorua service which was operated daily with a whisper-jet. This link wasn’t successful and was removed from Ansett New Zealand’s September 1997 timetable. Meanwhile, Tranzair flights between Whakatane and Auckland ceased on the 3rd of November 1996.
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| British Aerospace 146-300 ZK-NZK at Christchurch on 11 November 1996 |
Ansett New Zealand’s final British Aerospace 146-300 whisper-jet ZK-NZN arrived in New Zealand on the 6th of February 1997. It entered service with the airline on the 8th.
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| British Aerospace BAe 146-300 ZK-NZH at Auckland on 9 October 1999 |
1997 saw the airline report a $7 million operating profit for the year ended the 30th of June. Chief executive, Kevin Doddrell, warned of rough times ahead, saying the airline was operating in a tough market. "From July 1997, it has been a different story for us, unfortunately. We are operating for the moment in a very soft market. Running a domestic airline, you are the first to see the impact of a lack of confidence as soon as it hits business or the consumer market. That has certainly been our experience this year," he said. For the year just ended, Ansett NZ, which is 100 per cent-owned by Rupert Murdoch's News Corp, turned in revenue of $264 million. Passenger numbers grew 7.7 per cent to give the company a 36 per cent share of the total market. On the main trunks, Ansett's share has risen to some 50 per cent, Mr Doddrell said, adding that the airline had a toehold in the business sector. News Corp, he said, was happy with the performance of Ansett NZ for 1996/97. He declined to comment on speculation that News was looking at a leasing or franchise arrangement with Qantas, or selling Ansett NZ to New Zealand investors. Another option reportedly being considered as a way out for News Corp was a float of the airline, which has accumulated losses of over $200 million since 1987. Last year's result dropped due to, among other things, higher fuel costs coupled with a softening of the market in the latter part of the year. In the first three months of this year, Ansett NZ saw passenger growth slow, while yields fell, he said. November numbers were looking a bit better, reflecting the traditional rise in demand during the peak season. "We are seeing an improvement in the second quarter but not a substantial improvement from last year. The outlook for this year is substantially more difficult than last year. We are expecting to see a reduction in profit," he said, adding the airline would still make money. On whether there was more room for price cuts to induce leisure travel, he said prices were not likely to fall further. In fact, with cost pressures building, there could be some increases in prices, he said.
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| De Havilland Canada Dash 8 ZK-NET departs Dunedin on 7 April 1999 |
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| British Aerospace 146-300 ZK-NZL at Auckland on 16 April 1999 |
On the 11th of July 1999 the British Aerospace 146-200QC ZK-NZC was flew its last service with Ansett New Zealand, ANSETT 789 from Wellington to Christchurch.
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| British Aerospace BAe 146-200QC ZK-NZC at Christchurch on 6 February 1997 |
From the 26th of October 1998 Air National took over operating Ansett New Zealand's Dash 8 flights between Rotorua and Wellington. Using BAe Jetstream 32 ZK-ECN which was named 'City of Rotorua' four return flights were operated on weekdays and three Saturdays and Sundays.
The following year Air National started operating more flights for Ansett New Zealand. On the 25th of July 1999 Embraer EMB-110P1 Bandeirante (c/n 110383) ZK-ECM was used to operate thrice daily flights between Auckland and Rotorua on behalf of Ansett New Zealand.
After two years of small profit Ansett New Zealand lurched back into the red with over $10 million per year losses in the next two years. In October 1999, while in the midst of an industrial dispute with the airline’s pilots, the NZ Herald had an interview with Ansett New Zealand's chief executive Kevin Doddrell. The rude wake-up call for Mr Doddrell was when the Asian crisis hit. The airline's fragile position was exposed. If nothing was done, the books would continue to stay in the red for the next five years. "After we had made two years of small profits, we had planned showing steady profit growth over the next few years. We realised after the Asian crisis that our profits over the two years were so fragile, that our plan wasn't so robust - that we would see a loss for the next five years."
It wasn't until the airline started benchmarking itself against others that it realised how inefficient it had been, Mr Doddrell said. Ansett NZ compared the cost of its jet pilots per seat and found them to be 25 per cent above its nearest competitor. Its jet pilots cost 15-17 per cent above foreign pilots, Mr Doddrell said. To make matters worse, the current contract was a legacy the company inherited from Australia. Mr Doddrell is fully aware that Ansett Australia took seven months to get rid of the same rigid contract he is trying to ditch. He is prepared to fight it out. For the 15-20 odd pilots that have signed on the new contract, Mr Doddrell said their productivity has turned into one of the highest in the world. The other 85 or so pilots the airline wants to re-hire have been locked out until they agree to the terms. In the meantime, the airline is operating only a third of its scheduled flights.
The contract with the pilots is but one of the many components going through overhaul in the entire airline, Mr Doddrell said. The engineering division has also seen drastic revamp. Because of the way the maintenance of the aircraft was redesigned, the company was able to sell one of its 10 aircraft, saving an annual $10 million in costs. It also took a look at its inflight service to see how things could be improved or more cost savings made. Off peak for instance, the number of flight attendants were reduced to three from four, to save money.
Leslie Brown, law lecturer at Victoria University, said, for those who have wondered why Ansett NZ is still in business, Mr Brown said: "Industry watchers have wondered from the start how long they'd be here. Those rare ones who said they will be around for a while have been proven right." For News Corp, which has been said to be interested in selling Ansett NZ since it acquired the airline, Mr Brown said: "News Corp have shown in their attitude towards Singapore Airlines (which was trying to buy News Corp's 50 per cent in Ansett Australia), they are prepared to take their time. It is the same with Ansett NZ. The indicators are they are still here - both in terms of not having sold to anybody, and also in terms of not having closed. They know the financial figures and they are still here."
By the end of November 1999, the word was out that Ansett New Zealand could well be sold and a consortium made an offer to Ansett's owner News Corporation following the failure of not making a deal with Qantas and the protracted staff lockout which virtually grounded the carrier for months.
After months of negotiation, in March 2000, Rupert Murdoch’s News Corporation sold Ansett New Zealand to a local consortium of businessmen. The consortium included New Zealand businessmen David Belcher, Sir Clifford Skeggs, Alan Gibbs, Trevor Farmer, Chris Coon, Ian Hendry and Greg Lancaster, and Australians Ken Cowley (through his company R M Williams) and Kerry Stokes. In late June 2000 the operating company, Tasman Pacific Airlines of New Zealand, announced Ansett New Zealand was to be rebranded as Qantas New Zealand, flying domestic routes as a franchise operation of the Australian carrier.
Ansett New Zealand’s last timetable was issued in February 2000. It shows the following non-stop flights being operated;
BAe 146 flights
Auckland-Christchurch
– 10 Monday-Saturday, 12 Sunday
Auckland-Queenstown
– 1 Saturday
Auckland-Wellington
– 16 weekday, 9 Saturday, 13 Sunday
Christchurch-Rotorua
– 1 daily
Christchurch-Queenstown
- 3 Monday-Saturday, 4 Sunday
Christchurch-Wellington
- 10 weekday, 11 Saturday, 12 Sunday
Wellington-Dunedin
– 1 weekday
Dash 8 flights
Auckland-Palmerston
North – 3 weekday, 4 Saturday, 2 Sunday
Christchurch-Dunedin
– 5 weekday, 4 Saturday, 5 Sunday
Christchurch-Invercargill
- 3 weekday, 1 Saturday, 2 Sunday
Christchurch-Palmerston
North – 1 daily
Invercargill-Dunedin
– 1 weekday (northbound only)
Wellington-Hamilton
- 3 weekday, 2 Saturday, 4 Sunday
Ansett Regional
flights
Auckland-Rotorua
– 3 weekday, 1 Saturday, 2 Sunday
Wellington-Blenheim
– 6 Monday-Tuesday, 7 Wednesday-Friday, 5 Saturday-Sunday
Wellington-Hamilton
- 1 Saturday
Wellington-Nelson
- 13 Monday-Tuesday, 14 Wednesday-Friday, 8 Saturday, 9 Sunday
Wellington-Rotorua
- 5 weekday, 3 Saturday-Sunday
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| The final Ansett New Zealand timetable, effective February 2000 |
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| The end is nigh... Stripped of its Ansett New Zealand livery BAe 146-300 ZK-NZM at Christchurch on 9 May 2000. It was repainted in Qantas New Zealand colours in August 2000 |
In the last
months of Ansett New Zealand two De Havilland Canada DHC-8 Dash 8-300s were added
to the fleet. ZK-NER arrived in Christchurch on the 3rd of March 2000. It operated
its first Ansett New Zealand service, ANSETT 690, from Christchurch to Wellington
on the 13th of March 2000. It was repainted in Qantas New Zealand livery on the
28th of July 2000. ZK-NEQ arrived in Christchurch on the 6th of May 2000. It operated
its first Ansett New Zealand service, ANSETT 625 from Christchurch to Dunedin on
the 13th of May 2000. It was repainted in Qantas New Zealand
livery on the 4th of August 2000.
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| The two Ansett New Zealand Bombardier Dash 8-300s that never wore the airline's livery... ZK-NEQ at Christchurch in May 2000 |
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| and ZK-NER at Christchurch on 30 June 2000 |
The repainting of these two aircraft signalled the beginning of the end. With aircraft already painted in Qantas New Zealand colours Ansett New Zealand formally ceased operations on the 3rd of September 2000.
The following day Qantas New Zealand was officially launched.
Aircraft Operated
ZK-NEA Boeing
737-130 (c/n 19013) - City of
Auckland
ZK-NEB Boeing
737-130 (c/n 19015) - City of
Wellington
ZK-NEC Boeing
737-130 (c/n 19016) - City of
Christchurch
ZK-NED Boeing
737-112 (c/n 19770) - City of
Nelson
ZK-NEE Boeing
737-2A6 (c/n 20195) - City of
Manukau
ZK-NEF Boeing
737-2UP (c/n 22575)
ZK-NZA British
Aerospace 146-200 (c/n E2116) - Queenstown
ZK-NZB British
Aerospace 146-200 (c/n E2127) - Rotorua
G-BPBT British
Aerospace 146-200QC (c/n E2119)
ZK-NZC British
Aerospace 146-200QC (c/n E2119) - City
of Manukau
ZK-NZF British
Aerospace 146-300 (c/n E3134) - City
of Wellington
ZK-NZG British
Aerospace 146-300 (c/n E3135) - City
of Christchurch
ZK-NZH British
Aerospace 146-300 (c/n E3137) - City
of Auckland
ZK-NZI British
Aerospace 146-300 (c/n E3143) - City
of Dunedin
ZK-NZJ British
Aerospace 146-300 (c/n E3147) - City
of Nelson
ZK-NZK British
Aerospace 146-300 (c/n E3190) - City
of Invercargill
ZK-NZL British
Aerospace 146-300 (c/n E3175) - City
of Rotorua
VH-EWJ British Aerospace 146-300 (c/n E3173) - Queenstown
ZK-NZM British
Aerospace 146-300 (c/n E3173) - Queenstown
ZK-NZN British
Aerospace 146-300 (c/n E3177)
ZK-NES De
Havilland Canada DHC-8-102 Dash 8 (c/n 125) - City
of Palmerston North
ZK-NET De
Havilland Canada DHC-8-102 Dash 8 (c/n 197) - City
of Nelson
ZK-NEU De
Havilland Canada DHC-8-102 Dash 8 (c/n 218) - City
of Invercargill
VH-XFU De Havilland Canada DHC-8-102 Dash 8 (c/n 151)
ZK-NEV De
Havilland Canada DHC-8-102 Dash 8 (c/n 151)
ZK-NEW De
Havilland Canada DHC-8-102 Dash 8 (c/n 52)
ZK-NEY De
Havilland Canada DHC-8-102 Dash 8 (c/n 55) - Queenstown
- Palmerston North
ZK-NEZ De
Havilland Canada DHC-8-102 Dash 8 (c/n 60) - Rotorua
- City of Invercargill
- City of Hamilton
ZK-NEQ Bombardier
DHC-8-311 Dash 8 (c/n 397)
ZK-NER Bombardier
DHC-8-311 Dash 8 (c/n 374)
Absolutely, undoubtedly top work Steve. What a fantastic read. Thanks so much - JPM
ReplyDeleteFascinating read, thanks for investing the time to research and share.
ReplyDeleteAwesome article. Always seemed bold to me to sport the australian flag on the tail for Ansett "New Zealand".
ReplyDelete