The rise and fall of Ansett

Yet while two decades have passed since Ansett’s last flight, the legacy of the airline lives on. Chris Frame spoke to members of the Sir Reginald Ansett Transport Museum and Historic Aircraft Restoration Society (HARS), to explore the rich history of Ansett and discover why the airline is so fondly remembered by so many. 

Founding an icon 

Ansett Airways was a successor to Sir Reginald Ansett’s successful road freight business. Ansett’s success in competing with state owned railways led to clashes with the Victorian government; causing Sir Reg to look skyward for his next venture. 

Australian air services fell under Commonwealth government jurisdiction, meaning airlines were able to bypass state legislators; removing one of the barriers faced by the road transport business. 

Thus, Sir Reg formed Ansett Airways in January 1936. But starting a new airline is no mean feat, and the new carrier faced many challenges in its early years. 

Just a few weeks after its formation, Ansett received its first aircraft: A Fokker Universal. Powered by a single-piston engine, the aircraft allowed Ansett Airways to carry up to six people per flight. The aircraft took to the sky on 17 February 1936, linking Hamilton, Victoria, with Essendon Airport. 

In 1937, the airline established its main headquarters at Essendon Airport, an aerodrome that was quickly becoming a major hub for Victorian air services. This move positioned the airline for future expansion. 

That same year, Ansett became a public company. This provided additional funds needed for expansion. The airline purchased larger Lockheed L-10Bs, which offered a 10-person passenger cabin, as well as the ability to carry as much as 340 kilograms of mail, baggage or other cargo. 

These aircraft allowed Ansett to enter new markets, including Mildura, Broken Hill and Sydney. The latter expansion saw the fledgling airline go head-to-head with Australia’s then-largest carrier, Australian National Airways (ANA). 

Australian Aviation spoke with Ansett historian Fred Niven in July. Niven spent 37 years at Ansett, undertaking various roles, and was regarded as the unofficial company historian. 

“The start of MelbourneSydney operations by Ansett Airways Pty Ltd in April 1938 provided the first serious competition to Australian National Airways and Airlines of Australia Ltd,” Niven said of the airline’s expansion. 

The airline’s services proved popular, leading some to consider Ansett an early success. But there were significant competitive hurdles associated with going head-to-head with ANA. 

“I’m not sure that Ansett’s early operations were quickly deemed a success,” Niven notes, adding that: “By August 1938: ‘Times were tough and Ansett Airways continued to lose money. Its £1 shares dropped in value to less than 8/- [shillings]’.” 

For Ansett, ANA was a big hurdle. The larger carrier attempted to acquire its smaller rival – a strategy it had employed successfully when faced with new competition in the past. 

While the Ansett board considered selling, Sir Reg was uninterested in the offer. Ansett was his airline – and he was determined for it to succeed. So determined, he went so far as to buy-back shares in the airline; securing its ongoing independence. 

Going to war

With Ansett secured as an independent company, the airline focused on expanding its east coast footprint, until the outbreak of World War II. 

Initially, the Ansett route map was unaffected by the war. However, as the conflict approached Australia, the situation changed. 

“During June 1942, Ansett Airways stopped all commercial flights, except the Melbourne to Hamilton service,” Niven says, adding: “[Ansett] began flying under contract to the USAAF [United States Army Air Force].”

“The airline lost money until the federal government provided a £22,500 annual subsidy for the services”

Niven told Australian Aviation that during the wartime years, Ansett advertising included: ‘You’ve given your seat to a soldier. Every day the Ansett organisation gives ‘all-out’ support to Australia’s war effort.’ This was a significant and patriotic change from the usual customer-centric advertising seen in the 1930s. Ansett worked closely with the military during the war years, winning contracts with the Royal Australian Air Force and USAAF to provide maintenance support to their fleets of aircraft. 

Ansett’s commercial interstate services resumed in February 1945, after lengthy negotiation for licences. Niven says flights included daily (except Sunday) services from Melbourne to Canberra via Wagga Wagga, and Melbourne to Adelaide via Mt Gambier. These flights utilised Lockheed L-10Bs and were scheduled to facilitate connections between Adelaide and Canberra. 

Following the war, Ansett had to adapt to peacetime operations once again. Operations were expensive, with Niven noting: “The airline lost money until the federal government provided a £22,500 annual subsidy for the services.” 

Additional government support came in the way of guaranteed financing for a combined purchase of Douglas C-47s. Niven says these aircraft came from the “US Foreign Liquidation Commission in the Philippines, for use by various Australian airlines. Three of those C-47s were destined for Ansett Airways, eventually replacing the Lockheed 10s”. 

The first three C-47s were acquired by the airline in 1946. The aircraft were converted into civilian DC-3s, capable of carrying 28 passengers. By July 1946, the DC-3s were flying on Ansett’s key Sydney – Melbourne run. 

Growing up

In the post-war years, Ansett developed into a significant force within the Australian aviation landscape. But from 1946, the airline met increased competition thanks to the establishment of Trans-Australia Airlines (TAA). 

Taking to the sky with a fleet of DC-3s, TAA was owned by the Australian federal government and quickly grew throughout the early 1950s. As TAA grew, ANA’s position as the dominant Australian carrier deteriorated, thanks in part to the strong competition provided by Ansett. 

Having acquired Barrier Reef Airways in 1950, Ansett gained experience with flying boats. Barrier Reef Airways was later absorbed into the Ansett brand, with the first Ansett Flying Boat Service taking to the sky in May 1952; a service the airline would offer until the 1970s. 

By 1954, Ansett was reequipping its fleet with Convair 340s. These pressurised piston powered airliners were able to fly faster and higher than the DC-3s, boosting passenger comfort. 

The following year Ansett became embroiled in a legal battle with Victorian Railways. A long-time foe of Sir Reg, the 1955 dispute focused on Ansett’s right to operate flights between Melbourne and Mildura – a right the airline ultimately won.

By 1957, ANA’s position had deteriorated further; with Niven noting the airline was close to bankruptcy. “Their board attempted to sell the airline to TAA, and, failing that, reluctantly accepted a purchase offer by Ansett Transport Industries Ltd. On 21 October, Ansett-ANA commenced operations; combining those of Ansett Airways and ANA.” 

The following year the federal government passed the Airlines Equipment Act. This legislation limited the number of airlines flying on mainline routes to two carriers: Ansett-ANA and TAA. This was an expansion of the two-airline policy that had been introduced in 1952. 

Enforced for over 30 years, the legislation eliminated competition on the busy trunk routes between major cities. However, it also limited the freedom of both Ansett-ANA and TAA; with each carrier required to achieve parity in the aircraft they utilised, and the services they offered. 

“Under the Two Airlines Policy … fleets, crew numbers, and service levels were strictly enforced by the federal government. It was hard for either airline to provide a significantly different passenger experience, other than via superior reservations and check-in systems, gate lounges [and] staff friendliness etc,” Niven explains. 

“That was to prevent either airline becoming dominant to the level that the other potentially went bankrupt, remembering that TAA at the time was not required to make a profit.”

Faster, further

Ansett-ANA continued to grow throughout the late 1950s and 1960s through mainline fleet expansion, as well as the acquisition of regional services. 

During March 1959, the airline introduced both the Vickers Viscount and Lockheed L-188 Electra. While the Electra fleet was fully integrated into the Ansett-ANA operation, some of the airline’s existing DC-6Bs were ‘cross-chartered’ with TAA Viscounts – a move that was mandated by the Two Airlines Policy rules regarding fleet parity. 

Differentiating from TAA was not easy on trunk routes, so Ansett turned its sights on regional markets. It expanded its regional footprint by acquiring several smaller regional airlines,  including Butler Air Transport (rebranded as Airlines of New South Wales), Guinea Airways (renamed Airlines of South Australia) and Mandated Airlines Ltd in New Guinea, forming Ansett-MAL (later Ansett Airlines of Papua New Guinea). 

Ansett Transport Industries also set its sights westward, acquiring a controlling stake of MacRobertson Miller Airlines (MMA) in 1963. Niven notes: “MMA had previously had commercial links with both Ansett and TAA,” adding: “Whilst some of the intrastate operators were marginal financially, they did provide very useful interstate on carriage.” 

October 1964 saw jet services commence on Australia’s domestic network. Introduced to the public at Essendon Airport, two Boeing 727-100s (one from Ansett-ANA and the other from TAA) arrived at the airport; to be greeted and inspected by onlookers and the media. 

Three years later, Ansett-ANA welcomed the smaller Douglas DC-9 into its fleet. This move allowed the Lockheed L-188s to be gradually replaced on passenger flights, while the ageing Douglas DC-3s and DC-6Bs were retired. 

Former Ansett pilot and HARS member Peter Tomkinson flew L-188s in the 1970s – which by that stage had transitioned to operate as freighters – and he recalls some of the complexities of flying the 1950s-era aircraft. 

“The Electra was older, but much more complex and came with a forward-facing engineer. Automated engine starting, electrical bus switching and generator control with no computers, only relays,” Tomkinson says of flying the Lockheed Turboprop. 

As freighters, the L-188s and their air crew were known within Ansett ranks as ‘The Wombat Squadron’, due to the freight operation keeping the same hours as the nocturnal marsupial. Tomkinson adds: “Even ATC at night accepted Wombat One, Two or Three, as the call sign.” 

Tomkinson later moved to the DC-9, where he served as a first officer between 1975 and 1978. He notes that the DC-9 was “a bit faster” than the L-188A. Despite the DC-9 being outlived at Ansett by its Lockheed predecessor (which enjoyed a lengthy career as a freighter), Tomkinson speaks fondly of the Douglas twin jet, and its capabilities. 

“[It was] one of the best aircraft in its day, which only needed a pat and a promise to go,” Tomkinson recalls, adding the DC-9 offered “consistent 25-minute turn-abounds including refuelling with a comfortable cabin if a little smaller than Boeing’s and a bit noisy in only the last rows”. 

During the late 1960s, Ansett also expanded and developed its regional network. Queensland Airlines’ Fokker F27s were absorbed into the Ansett-ANA fleet in December 1966, while a de Havilland Twin Otter commenced services for West Australian subsidiary MMA in 1967. 

The following year, the ANA name was dropped from Ansett’s branding, and the airline relaunched as Ansett Airlines of Australia. This rebrand included a new livery, sporting a bold ‘Ansett Orange’-tail and delta-shaped stylised ‘A’ icon as the logo. 

Ansett subsidiary MMA welcomed Fokker F28 jets into its fleet in the final months of 1969, and, over the next few years, ongoing change was common within the Ansett fleet and operations. 

Vickers Viscounts were withdrawn in 1970, followed by the final L-188 Electra passenger flights the following year. The airline relocated from Essendon Airport to (then new) Melbourne Tullamarine in June 1971, while Ansett’s Boeing 727-200s took to Australian skies in 1973. 

The 727-200s were larger and more efficient than the earlier -100 series, but their arrival coincided with the 1970s oil crisis. Higher prices drove down demand for air travel. 

Subsequently, Ansett (and TAA) requested a delay in the delivery of their new 727s. However, once Ansett 727- 200s entered Australian service, they would remain part of the domestic passenger fleet until 1997. 

“Many of our competitors’ best customers were golden wing members and Ansett’s domestic market share had risen”

The new guard

In January 1980, Ansett came under the control of TNT and News Corp. The result of a lengthy acquisition battle (which originally included Robert Holmes à Court’s Bell Group); Ansett was now owned 50/50 by the new owners. 

Rupert Murdoch of News Corp and Peter Abeles of TNT became joint managing directors, with Sir Reg remaining as chairman until his death in 1981. The News Corp/TNT era was characterised by further expansion, through both asset acquisition and product enhancement. 

High on the agenda was fleet renewal, with Ansett placing a significant order with Boeing in April 1980. This included new four 727-200LRs, 12 737-200s, as well as five 767-200 wide bodies – the latter of which would go head-to-head with TAA’s newly-announced fleet of Airbus A300-B4s (the fleet parity rules of the two airlines policy having been relaxed somewhat). 

During 1981, Ansett Airlines of Australia was rebranded as Ansett. – with a new livery introduced. Consisting of a white fuselage and blue ‘Ansett.’ wordmark, the tail of each aircraft was painted in a striking and colourful design featuring the Southern Cross. 

Ansett pioneered the creation of airline amenities and loyalty programs throughout the 1980s, with the establishment of Ansett Golden Wing.

Sir Reginald Ansett Transport Museum spokesperson and former member of Ansett management Tony Bracy managed the creation of Ansett’s lounge network from 1981. He spoke with Australian Aviation in June. 

“Although the project had no name [at the time], its objective was to create a dedicated service delivery channel to take our best customers out of the check-in and other queues in recognition of their value to Ansett,” Bracy explains. 

By year’s end, the project had evolved into the Ansett Golden Wing – a name that was later refined to the Golden Wing Club. For $50 a year [$251 adjusted for inflation] – or $550 [$2,371 adjusted for inflation] for a lifetime membership – customers had access to “professionally designed terminal lounges at Melbourne, Sydney and Brisbane airports and a host of skilled customer-oriented people to run them”. 

Bracy says that “a few senior Ansett people did not like the idea”, adding: “They saw it as an unnecessary additional cost, but when they saw the flood of membership monies rolling in, one of the most senior people was kind enough to admit that it was the ‘best idea he never had’.”

“While Ansett could get away with the Australian flag livery domestically, it was already confusing the international market.”

 The move to offer high tier flyers exclusive amenities and a streamlined customer experience paid off. Bracy notes: “Many of our competitors’ best customers were Golden Wing members and Ansett’s domestic market share had risen from around 47 per cent to more than 53 per cent.” 

Competitor TAA was taken by surprise. However, they reciprocated with the creation of the ‘TAA Flight Deck Lounge’ in August 1982. Bracy notes that this launch included “a lounge guide that was a word-for-word copy of the Ansett Golden Wing production. As they say, imitation is the sincerest form of flattery!” 

While Ansett had led the way with airport lounges, TAA was the first domestic carrier to offer Business Class. Pitched at a lower price than the existing First-Class offering – but offering substantially better seat pitch and meals than Economy – Business Class was a hit with travellers, leading Ansett to introduce a similar product in 1985. 

Ansett’s fleet further evolved when the airline welcomed BAe 146 jets to its fleet in 1985. The type was utilised by regional subsidiaries. Ansett introduced Fokker 50s two years later, with the newer turboprops gradually replacing older Fokker F27s. 

That same year, Ansett New Zealand began flying between New Zealand cities utilising a fleet of Boeing 737-100s – including some of the earliest production models of the 737 series. Later, Ansett New Zealand replaced the 737s with BAe-146s and remained part of the Ansett family until 2000. 

In 1986, Boeing 737-300s commenced domestic Australian flights, allowing Ansett to withdraw its 737-200 fleet. From 1988 the first Ansett Airbus A320s began to fly a variety of key domestic routes across Australia. 

Ansett continued its acquisition strategy throughout the 1980s and 1990s. This included the takeover of Aeropelican in 1980, Skywest in 1983, East-West Airlines in 1987, and Kendell Airlines in 1990. 

Towards the new millennium 

Ansett launched another new livery in 1990, and once again tweaked its name: this time to Ansett Australia. The new livery saw the Australian flag draped on the aircraft’s tail, replacing the more stylised Southern Cross design – while the name change sought to ensure the airline’s Australian heritage was easily identified for planned international expansion. 

The ’90s were dominated by deregulation in the Australian aviation market, which impacted both airlines and airports. It ended the Two Airlines Policy, and allowed competitors into Australian skies. 

As Ansett Australia and Australian Airlines (formerly TAA) adjusted to the new landscape, competition arrived. Compass took to the sky in December 1990, with the new domestic carrier selling low-cost flights on a fleet of Airbus A300-600Rs. 

The incumbents responded by slashing their own fares, and restricting Compass’ access to domestic terminals. Compass failed just one year later. A revised Compass “Mk II” commenced flying in August 1992 – this time utilising smaller McDonnell Douglas MD-80s. However, history repeated itself, with the airline ceasing operations again; this time after just seven months. 

The 1990s also saw a change of the guard, with both Murdoch and Abeles stepping down as chief executives during 1992. 

Ansett and Australian Airlines both launched frequent flyer programs in August 1991. At Ansett, this program complemented the already successful Golden Wing lounges. 

In September 1992, Qantas and Australian Airlines formally merged, creating Australia’s largest carrier. The new airline had a significant footprint both at home and abroad. At the same time, Ansett was granted permission to fly internationally under its own right. 

Thus, Ansett set its sights overseas – launching Ansett International. Remarkably this resulted in another livery – known as the Starmark – replacing the Australian flag branding that had been introduced just four years earlier. 

But there was sound logic behind this change, which Bracy explains: “The research said that while Ansett could get away with the Australian flag livery domestically, it was already confusing the international market. By then [we were] running international services to Bali with domestic equipment and many overseas research respondents asked: ‘Why would an Australian airline have the flag of Bermuda on its tail?’ – the red Bermuda ensign features a Union Flag in the upper left corner.”

To overcome this confusion, Bracy says that work was done on selecting a design consultant to reinvent Ansett International’s image – with Ansett domestically not yet on the agenda. 

“The homework started with Landor. But when we looked at Landor none of the people who had made that brand consultancy world-famous were still there. Not even John Diefenbach. So, we went looking. We found that John had his own design business – a consultancy called Diefenbach Elkins – with offices in San Francisco and New York – and we invited them to prepare a submission for us,” Bracy continues. 

“We also asked Lippincott & Margulies Inc. of New York to do the same and I wrote a design brief for both to consider. Lippincott had done outstanding work for Continental, which survives today as United’s tail.” 

While the Ansett team had great respect for both designers, Bracy says the final choice of Diefenbach Elkins was unanimous, adding: “A logotype consisting of a specially drawn proprietary rendition of the name ‘Ansett Australia’ was approved, the ‘Starmark’ was born.” 

Bracy says when the Starmark branding was presented to Ansett’s existing customers, the feedback was “fantastic”, leading the airline to adopt the new branding across its entire fleet – international, domestic and regional. 

Ansett International’s first Boeing 747-300 service took wing on 4 September 1994 – linking Sydney to Osaka. From 1999, the International Division would upgrade to 747-400s – with the entire fleet of 747s leased from Singapore Airlines. 

Former international cabin manager Michael Jones remembers his time at Ansett International as a happy time, noting the various destinations that he visited while working with the airline. 

“Japan, Hong Kong, Taiwan, Seoul, Indonesia – Jakarta and Bali – Malaysia, Auckland, Fiji, Perth, Brisbane, Melbourne… I was fortunate to be a part of the inaugural Shanghai flight on 8 June 1997. The ongoing expansion of Ansett International was a proud and impelling momentum,” Jones says. 

“The product was our point of differentiation and competitive edge in the international market as we had just a few aircraft. Inflight chefs in First and Business Class from 6-star restaurants and warmed sake in the economy cabin, cocktail service on Osaka flights. And we began ice cream and movie snack services in 1994. Ansett was known for being a decade ahead of its time and that continued with Ansett International.” 

Approaching minimums 

TNT bowed out of Ansett ownership in 1996, selling its 50 per cent stake of the airline to Air New Zealand. This arrangement continued until early 2000, when Air New Zealand purchased the remaining 50 per cent from News Corp. 

In the years leading up to 2000, Ansett had gradually lost ground against Qantas at home – witnessing a reduction in both market share and profit share when compared with its larger competitor. 

Ansett’s ageing fleet of Boeing 767-200s came into focus in late 2000 when a series of maintenance oversights were identified, leading to several aircraft being grounded. The 767 issues escalated over the coming months, with CASA, the Australian regulator, grounding the entire Ansett 767 fleet in April 2001. 

As a result, Ansett’s domestic workhorse was out of action over both Christmas and Easter, causing not only considerable public relations damage to the airline, but also significant financial hardship. 

Remarkably, as the 767 drama was unfolding, Ansett was still pursuing its acquisition strategy, taking control of regional carrier Hazelton Airlines in May 2001. 

In August, Ansett took delivery of the first of its 767-300s – leased from Air Canada – intended to replace the troublesome 767-200s. At the same time, behind the scenes, the financial situations at both Ansett and Air New Zealand were reaching a critical juncture. 

Air New Zealand had been in purchase negotiations with both Qantas and Singapore Airlines, but ultimately these negotiations broke down. In Australia, newcomer Virgin Blue was causing headaches for Ansett, leading to an offer being made to purchase the low-cost carrier – an offer that was rejected. 

By September 2001, things were looking dire. Ansett’s reputation had not recovered from the 767 debacles and there was little hope of capital injection, with Singapore Airlines officially withdrawing from purchase negotiations early that month.

On 10 September 2001, Air New Zealand offered Ansett to Qantas for a token price of $1. One day later, the September 11 terrorist attacks shook the world. Aviation, globally, would take years to rebound. 

End of Ansett

Qantas declined to purchase Ansett on 12 September. Ansett was subsequently put into voluntary administration with Pricewaterhouse Coopers. Two days later, the administrators grounded the entire Ansett operation. 

Chaos ensued, with thousands of travellers stranded, and thousands of workers no longer employed. 

Several days later, administration of Ansett was passed over to Mark Korda and Mark Mentha. On 27 September, the new administrators announced that Ansett would resume flying domestically.

“The product was our point of differentiation and competitive edge in the international market”

Utilising some of its Airbus A320 fleet, the revived Ansett offered a no-frills service on domestic trunk routes. While Ansett international would never fly again, regional subsidiaries were able to resume services. 

For a while in late 2001 and early 2002, it looked as if Ansett might survive. Several parties expressed interest in the airline, the most promising being Tesna. However, on 27 February 2002, the Tesna deal fell through.

Time had run out for Ansett. Thus, the final mainline flights took place over the coming days – with the last ever service departing Perth and arriving in Sydney on 5 March. 

Over the coming months, and years, the administrators sold Ansett’s assets, with Ansett branded aircraft gradually disappearing from airport aprons, and terminals gradually sold and rebranded to suit other carriers. 

A shining light was the ongoing success of Ansett’s regional subsidiaries. Kendell and Hazelton were sold to become Regional Express. Skywest went on to become a major regional carrier in Western Australia, and was later acquired by Virgin Australia, while Aeropelican continues services to this day as FlyPelican. 

Another star was Ansett Aviation Training, which was formed after the sale of the Ansett Simulator Centre in Melbourne. Twenty years later, it still utilises the iconic Starmark and custom font on its branding. 

So, after 20 years, why is Ansett still so fondly remembered? It comes down to the passion of the people who made Ansett a special experience during its decades of service. 

According to Michael Jones, “Life changes, yet the superb class and the standards of Ansett has never been replicated by any airline in Australia. It was a terrific 15-year chapter, and to the person that wrote, ‘you can’t have the best airline in the world without the best people, never a more accurate word could be said about Ansett people.” 

Fred Niven echoes these sentiments, noting: “In a word, it was ‘superb’. The culture was extremely positive, and staff were proud to work for a great airline, which was well ahead of its competition in so many ways. Customers were loyal, as we gave them what they wanted. Even in the final days, amid uncertainty, most staff remained proud members of the ‘Ansett Family’.” 

It is for this reason that Ansett, while gone, will never be forgotten. 

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Australian Aviation would like to acknowledge the support of the Sir Reginald Ansett Transport Museum secretary/ treasurer, Heather Kruger, and Historic Aircraft Restoration Society president Bob De La Hunty, as well as Tony Bracy, Fred Niven, Peter Tomkinson, Michael Jones, Bruce Waxman and Michael Rossiter.