Air future unclear after Ansett collapse

The domestic aviation market now has an unclear future, but in the short term Virgin Blue will shoulder a bigger burden.
Ansett will keep flying until next Monday and people holding tickets for travel after that date will receive refunds.

Meanwhile, the ACCC has warned that Ansett's collapse may lead to rising air fares within a few days. Qantas says there won't be any immediate increase but wouldn't comment on any future pricing strategy.

Virgin Blue's Brett Godfrey also ruled out any price rises in the immediate term. But the Australian Consumers' Association's Catherine Wolzhuizen says that the collapse of the Tesna deal is a serious blow to consumers. She says that only 24 hours ago they were looking at increased competition and better services and now they're faced with higher fares and possibly diminished services.

The federal Transport Minister John Anderson will await the deliberations of the Australian Competition and Consumer Commission on the collapse of Tesna's bid to revive Ansett before he decides whether to act and grant the watchdog greater powers.

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