Ansett vows to keep discounting

Ansett Airlines has raised hopes of a continuation of savage airfare discounting despite the demise of Impulse Airlines. The airline says it will not accept the deal lying down and will take on Qantas with the same aggressive discounting seen over recent months.

Ansett yesterday offered a rival bid to Qantas for Impulse Airlines with CEO Gary Toomey saying : “You haven't seen the end of the airfare war or Impulse. You also haven't seen the end of budget airline operations, just because Qantas is trying to swallow Impulse. We will fight them in the market, on product and price.”

Ansett plans to meet today with the Australian Competition and Consumer Commission (ACCC) to present their alternative to the Qantas proposal.

Meanwhile, Impulse and Qantas are determined for their deal to be struck and do not agree with any of Ansett's arguments as to why this deal should not go ahead.

The ACCC has been bombarded with objections to the Impulse-Qantas deal. Chairman Allan Fels said the “real possibility” was that Qantas's bid would be approved with conditions – and that a decision would be made urgently.

Sydney Morning Herald, p2, May 3, 2001

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