The Collapse of Ansett Airlines

Aviation 1
THE COLLAPSE OF ANSETT AIRLINES
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Aviation 2
TABLE OF CONTENTS
ABSTRACT
Introduction to the report......................................................................3
Literature Review................................................................................3
Ansett Airline......................................................................................5
History......................................................................................5
Downfall.....................................................................................6
Failings......................................................................................6
Consequences..............................................................................7
Marketing Strategy......................................................................7
Lessons.....................................................................................8
Conclusion..........................................................................................9
References..........................................................................................10

Aviation 3
INTRODUCTION
The Australian airline industry has had stormy times in the recent past which resulted in a
reduction in international tourism after the September 2001 terrorist attacks in the United States.
Since the late 1990s, the industry has gone through key changes like the famous domestic trunk
routes which had four airlines now having only two. Currently, the industry’s two main airlines
are Qantas Airways that took over Impulse Airlines in 2001 and the Virgin Blue which is rapidly
building its market share though it still has less than a third in the market.
Australian airline and the aviation industry has experienced upheavals including the
absorption of the Impulse Airlines into Qantas and the collapse of the Ansett group. In the past
decade, there has been a change in the aviation infrastructure industry with the transfer of all the
main Australia’s important airports to privately owned companies for lasting leases from the
Commonwealth. This is a report about the Ansett airline that ceased its operation in Australia.
Literature Review
Several airlines have been in operation around the globe. Some of the airlines that were
once in operations are now out of business for different reasons. The collapse of some of the
airlines does not prevent other players in the aviation industry from entering the market (Albers,
Baum, Auerbach, and Delfmann, 2017). Clearly, aviation services in the world will not end due
to the fact that people have to travel and explore.
More than 70 airlines in the recent past have ceased their operations due to bankruptcy,
mergers and takeovers, receivership and liquidation. There was a review of the Domestic Air
Policy Transport in 1978 in Australia. At the time of the review only two main domestic airlines
were in operation; Ansett and Trans Australia Airlines. Currently, none of these airlines are still
in operation. The cost of starting an airline is very costly making it hard for entry of new airlines.