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Issue 32: May/June 1986
Cost Pressures Force Closure Of Ansett Airlines Of South Australia
The State by this July and arrange a transfer of its services to Kendell Airlines which already operates a three State network with Pressurised aircraft.
In announcing the closure of the airline, the General Manager of Airlines of South Australia, Mr Mick Connelly said that this was primarily the result of the high weekly losses being sustained by the airline. These Losses would total $1. 5 million this financial year at current fare levels despite persistent marketing efforts over a long period. Mr Connelly also cited a lack of growth in the total air passenger market in South Australia.
with no prospects for developing new routes and the Air Transport Policy in SA that permitted many third-level operators to fly smaller, lower cost aircraft over routes in competition with ASA’s much larger turboprop F27s
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