page_title: Ansett Australia
section_title: Towards a duopoly
hierarchical_section_title: Ansett Australia / History / Towards a duopoly
context_page_description: Ansett Australia was a major Australian airline group, based in Melbourne. The airline flew domestically within Australia and from the 1990s to destinations in Asia. After operating for 65 years, the airline was placed into administration in 2001 following a financial collapse and subsequent organised liquidation in 2002, subject to deed of company arrangement. The last flight touched down on 5 March 2002.
context_section_description: Ansett Airways remained a big player as ANA and TAA battled for supremacy in the 1940s and 1950s. Ansett operated around the big two, maintaining budget-fare interstate operations with DC-3s and later Convair CV-340s previously operated by Braniff International Airways in the United States. The airline was backed up by extensive road transport operations, including Ansett Freight Express and Ansett Pioneer Coaches, as well as the Ansair coach-building operation.
  The Menzies government, while supporting TAA, because of the excellent dividends it paid to the government, wanted to avoid TAA having a monopoly on domestic services if ANA collapsed, as seemed likely. The only alternative, as it transpired, was for Ansett to buy the ANA operation. Ansett's bid had a number of financial supporters, most prominent of these being the Shell Oil Company. Douglas Aircraft Company was also concerned about ANA's demise, as TAA had ceased to be a customer for their aircraft. The ANA directors fiercely resisted this initially, but in October 1957, succumbed to Ansett's offer of £3.3 million for their airline. The new entity was called Ansett-ANA, the name it retained until 1 November 1968, when it became Ansett Airlines of Australia.
  Ansett-ANA's excellent profit record was, at least in part, courtesy of the Menzies government's Two Airlines Policy. The policy effectively blocked any other domestic interstate operators by way of a ban on importation of aircraft without a government licence. From 1957 until the 1980s, under the strict rules set down by the Two Airlines Policy, Ansett and TAA operated as virtual carbon copies of each other, operating the same aircraft at the same times, to the same destinations, at fares, which were identical (under strict federal government policy). If either airline wished to change its fares, they had to obtain federal government approval.
  Reg Ansett then set out to ensure no other competitors could rise up to challenge his airline. He took control of Adelaide-based Guinea Airways (renamed Airlines of South Australia) and Sydney-based Butler Air Transport (renamed Airlines of New South Wales). The takeover of Butler was achieved with covert support from the Menzies government and by Ansett engineering his employees' purchases of Butler shares (in a similar way as had just been attempted by Butler). He then flew the employees to a general meeting in Sydney and forced a vote in favour of selling out to Ansett.
  Following the takeover of ANA, Reg Ansett lobbied the government to block TAA's purchase of Sud Aviation Caravelle jet aircraft. He was concerned about his airline's ability to finance equivalent jet aircraft, and the major engineering leap required to go from an all-piston fleet direct to pure jet aircraft, TAA had been operating prop-jet Vickers Viscounts since 1954,  so had expertise in jet technology. Ansett was successful in convincing the government to authorise the importation of more Viscounts and the new Lockheed L-188 Electra, marketed as the "Golden Jet" as with other turboprop airliners of the day. This action delayed the introduction of pure jet aircraft to Australian domestic airlines until 1964, when the Boeing 727-100 "Fan Jet" began flying.
  An unusual feature of Ansett's operations was the flying-boat service from Rose Bay in Sydney to Lord Howe Island. This was operated by Ansett Flying Boat Services using Short Sandringham four-engined aircraft. The service ceased in 1974 when the Lord Howe Island Airport was completed.
caption: 1970s logo