Ansett deal in new year

1.00pm

SYDNEY - A deal by Melbourne businessmen Lindsay Fox and Solomon Lew to buy the former Air New Zealand subsidiary Ansett Airlines is expected to be in place by January 31 next year.

The deal still requires the approval of Ansett creditors next month, the ratification of the Federal Court and the support of the federal government.

Federal Transport Minister, John Anderson said there would not be a Government decision on the bid until after the election.

"I do not believe that that can happen ahead of the other creditors working through the issue and then a formal position being put to the government, whoever that might be after the weekend, and then the government considering it," he said.

Messrs Lew and Fox have no aviation experience and will looking for an operator to run the business.

Mr Fox said approaches had been made to Singapore Airlines, with the potential for the Asian carrier to take an equity interest down the track.

The Lew-Fox syndicate will use Ansett's terminals, flight slots and the company's headquarters in Melbourne. It will retain the Ansett name.

The Ansett arrangement is expected to offer jobs for 4,000 Ansett employees.

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