case study Ansett and Air New Zealand
Introduction This project is to analyze the case of Ansett and Air New Zealand. Ansett was an airline company that opened in 1931. ... It was wholly owned by Air New Zealand. ... In this paper, we will first introduce the history of Ansett and Air New Zealand. ... Lastly, we will add some recommendations that Ansett and Air New Zealand can do to improve the business. ... Case Profile From: www.ansett. ... au/ This case is about the airline industry of Ansett and Air New Zealand. ... l Reginald Ansett operated Ansett in 1931. ... Ansett then registered as Ansett Airways, recruited a pilot (Vern Cerche) and an engineer (John Davies). l In May 1946, Ansett Airways became Ansett Transport Industries. Ansett set up a number of hotels across Australia. l In 1979 a takeover of Ansett Transport Industries began with major share acquisitions. In early 1980 ATI came under the ownership of TNT and Newscorp, and during 1980 a totally separate company, Ansett Air Freight, was formed. In December, Sir Reginald Myles Ansett died at the age of 72. l In the financial year 1988-89, Ansett reported a profit of AUS$67. ... l In 1996, Ansetts major shareholder (News Corporation) became sole owner of Ansett New Zealand. Air NZ purchased TNTs interest in Ansett. l In 2000, Ansett Australia became wholly owned by Air New Zealand as part of the Air New Zealand - Ansett Group. l Later, Ansett takes over the Hazelton Airlines. Finally, Ansett closed down from midnight on 4 March 2002. ... Therefore, Ansett can expend to international market, for example, operated Asian airlines and differentiate the services. ... Global Ansett and Air New Zealand began to open international market such as Asian airlines. ... Competitors rivalry There were many new airline companies, like Qantas, Impulse, Virgin Blue and Spirit that compete intensively with Ansett and New Zealand. ... Substitutes There were little substitutes to air industry as the distances between cities of Australia were very long. ... Suppliers Some of the planes of Ansett were leased from the Singapore Airlines. Ansett relied heavily on the Singapore airlines. ... Competitive environment Analysis Ansett had a highly competitive environment. ... SWOT Strengths Air New Zealand totally owned Ansett and so they can share resources and core competencies. ... Weaknesses Ansett delayed check on engine and did not concern on safety of planes. ... Ansett did not have safety checks of the plane engines. ... The owners of Ansett, Air New Zealand, and in some cases the previous owners, were accused of denying Ansett necessary capital, and Air New Zealand flights were delayed by industrial action. ... Ansett subsidiaries Hazelton Airlines, Kendell, Skywest and Aeropelican were also grounded. And so, Ansett lost reputation. ... Ansett was not managed well by its board and the involvement of Air New Zealand in running down Ansetts funding to the point that it is no longer able to operate.