Ansett sell-off likely to take two years

SYDNEY - Selling collapsed airline Ansett Australia's assets could take up to two years, but employees can hope to receive the first part of their entitlements within two months, say the airline's administrators.

The 66-year old airline was grounded forever this week after a A$3.5 billion ($4.27 billion) rescue bid ended when the buyers, Melbourne millionaires Lindsay Fox and Solomon Lew, walked away after months of negotiations.

Around 3,000 of Ansett's original 16,000 staff hoped to be re-employed by Fox and Lew's Tesna consortium, but now have to wait four to eight weeks before receiving initial entitlements under a federal Government-backed scheme.

"Any entitlements beyond those to be paid initially would need to wait until the sale of Ansett assets," said administrators from Andersen.

"The sale of assets was expected to take up to two years to complete."

Asset sale talks have so far been held with Richard Branson's Virgin Blue, interested in Ansett's domestic terminal leases and maintenance facilities, and transport group Patrick Corp, which also has a plan to buy 51 per cent of the discount carrier on the table.

"They're in early stages of talks with people who had expressed interest previously," a spokesman for the administrators said.

Australia's biggest carrier, Qantas Airways, is also interested in buying some of Ansett's assets, originally valued at around A$1.6 billion by administrators.

A large number of Ansett's Airbus fleet were leased, and the planes are being returned to their owners.

Administrators have told Ansett's creditors, owed around A$2 billion, not to expect to see any returns.

Ansett was placed in administration by former parent Air New Zealand as it fought for its own survival.

- REUTERS

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