Fed: Ansett grounding costs its $2 million plus image: Toomey

AAP General News (Australia)
04-16-2001
Fed: Ansett grounding costs its $2 million plus image: Toomey

Chief executive GARY TOOMEY says Ansett had spent little on upgrading its fleet until
it was taken over by Air New Zealand last year.

Mr TOOMEY says the airline was squeezed before the sale, not in terms of safety, but
in terms of capital investment.

On the Nine Network this morning, Mr Toomey said the previous owners - Ansett and News
Corp - obviously were in a sale mode and not spending a lot of money on upgrading the
airline.

He defended Ansett's current management, saying it is not to blame for the problems
which grounded Ansett's fleet of 767s over Easter.

Mr TOOMEY says it seems a little unfair that in some quarters the current management
has been blamed for the problem.

He says current management had identified the problem which forced this weekend's grounding
of the fleet.

He says Ansett has taken the initiative.

Mr TOOMEY estimates the grounding of 10 Boeing 767s has cost the airline $2 million
but that is insignificant compared to its damaged reputation.





The aircraft were grounded after engineers last Thursday found cracks in engine mounts
on three planes, and another flew eight times without any emergency escape chutes working.

AAP RTV fh/maur/bwl/mjm

KEYWORD: ANSETT TOOMEY (CANBERRA)

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