Case study:

Ansett Airlines and Air New Zealand

A flight to oblivion ?

Prepared and submitted by:

Olila, Mariel Ann.

Caliguia, Elijah.
Ferrera, Fred.
Esguerra, Franchesca
Nuevo, Ria

Submitted to:
PROF. Steve De Torres
 Introduction
This case analysis are base on the Ansett and Air Newzeland airline are being to oblivion in the Market
industry under Rod Eddington . The objective of this case is to develop understanding of governance and
strategy within ANZ (Air New Zealand ) as it progressed through sequential forms of ownership. We use
a basic format in this case analysis to identify the core of the problem, solution that we recommend and
also to implement.

Backgound
The history of Ansett Airline began in Victoria in 1936 and founded by Reginald Ansett . In 1937 the
company was incorporated in order to fund to purchase of new aircraft equipment and expansion for
flight services. After 10years ansett are able to expand business and its facilities. Ansett Airlines renamed
Ansett Transport Industries Ltd (ATI) and build subsidiary operation. The operations of ansett are stable
when Peter Abeles, took over as chairman after Reginald Ansett death in 1981. Under Peter Abeles the
Ansett Airlines relaunced with a new logo, new livery, refurbished terminals and upgraded in-flights
services. Abeles invested in wide range of new aircraft for the airline and posses almost every available
model aircraft.As a result , it was forced to spend far more on servicing, maintaining and flying aircraft
than its competitors and facing an increase in competitive pressure from opponents and the growing of
new entrants in the Australia market. The Ansett almost lose to its competitors in the market and in 1992
Ables resign and the Air New Zealand purchase the stake of Ansett Holdings Ltd. Rod Eddington
became chief executive and lauched his Great Bussiness plan to improve profitability ,and began merging
Ansett operations with Air New Zealand.

Summary
In the year 2001 , a year after purchasing the remaining stake of Ansett by Air New Zealand and for them
it was an opportunity to expand into the Australian domestic market but for Ansett, they are still
struggling,learning on financial and operational support to compete in the deregulation markets and both
of this Airlines are member in the Star alliance network, a global marketing and travel logistic alliance
and ansett now was to improve competitiveness in the Australian market, improving the group’s
domestic, regional and global presence and the Top management of ansett/Air New Zealand would
determine not only whether to achieve the benefits expected from the merger, but whether in the fact they
could continue in what had now a highly competitive industry.