Ansett’s $100m breather

There is now more hope for the failed Australian airline Ansett. On 15 October 2001, the administrators reached an agreement with the Australian Government. The similarly troubled Air New Zealand will give Ansett's administrators $A150 million as a final severance package.

Some $A100 million will be used to keep the streamlined version of Ansett flying. Some $A50 million will be used to fund a portion of the workers' entitlements. The Australian Government has agreed to provide around $A195 million, to fund voluntary redundancy packages for some of Ansett's 16,000 workers.

The agreement has pleased everyone, especially the administrators of Arthur Andersen. Airline tickets will be guaranteed by the Australian Government until 31 January 2002.