Thursday, March 1, 2012

Fed: Ansett closes Canberra terminal on Virgin Blue

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Fed: Ansett closes Canberra terminal on Virgin Blue

By Jane Williams and Denis Peters

MELBOURNE, Feb 1 AAP - Virgin Blue's Canberra passengers will be collecting their luggagefrom the kerb outside the capital's airport from today after Ansett kicked the rival airlineout of its terminal, leaving the building locked and empty.

Would-be Ansett owners Tesna warned they would be taking a hard line with competitors.

But Canberra Airport managing director Stephen Byron said he believed the delay insigning the Ansett sale deal would give Virgin Blue breathing space.

Ansett administrators Andersen have continued to run the airline and adopted Tesna'sproposed new flight schedule from today, embracing the company's tough stance as well.

From today, the terminal remained closed as Virgin Blue passengers checked in throughsmaller makeshift terminals set up by the airport for regional airlines.

The number of check-in counters in the regional terminal has been doubled from twoto four but the area does not have a baggage belt and passengers are being forced to waitoutside while bags are brought around by trailer and left on the kerb, Mr Byron said.

He said Australian travellers were noticeably bitter while international visitors wereincredulous they were forced to wait outside a national capital airport for their bagswhile a fully serviced terminal lay idle and empty.

"Internationally, airlines don't own terminals, airports do. So a situation like thisjust wouldn't happen," Mr Byron said.

Virgin Blue spokeswoman Amanda Bolger said the regional check-in counters were a short-termsolution as alternative arrangements were sought.

"We're quite willing to pay money for using that facility (but Ansett) are obviouslymore intent on inconveniencing Canberra travellers than looking after the creditors andemployee entitlements," Ms Bolger said.

Comment on the issue was unavailable from Ansett's administrators.

Canberra was not the only area to fall foul of the new Ansett regime, which scrappedall services in and out of Tasmania.

The Tesna schedule has increased the number of Ansett's weekly flights from 424 to530 between Sydney, Melbourne, Adelaide, Brisbane and Perth.

Ansett administrators Andersen had no choice but to introduce the flights which havebeen open for booking since Tesna signed an in-principle agreement in November last year.

The extra flights along with the delay in finalising the Fox-Lew sale deal is costingabout $6 million a week in trading costs and computer leasing.

Aviation experts today warned that the delay would increase public scepticism of theairline's future and could harm sales.

Meanwhile Civil Aviation Safety Authority (CASA) spokesman Peter Gibson said he was"disappointed" Tesna had not been open about how far behind the sale preparations were.

"We're disappointed we put a lot of effort into overtime and extra work on behalf ofa large number of people to meet this (February 1) deadline and then they changed thedeadline," Mr Gibson said.

The new sale date will depend on how quickly the airline can finalise the transferof airport leases, particularly the lease over terminals and property at Sydney's Kingsford'sSmith Airport.

Administrators Mark Mentha and Mark Korda and a team of lawyers have been working 20-hourdays and would be working over the weekend to try to finalise the lease, the spokesmansaid.

AAP jmw/gfr/jnb/sb

KEYWORD: ANSETT (PIX AVAILABLE)

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