iscover
EWA will greatly benefit from being able to amortise its assets better and by utilising the vast engineering, training, logistics, terminal and CRS systems of the Ansett Group.
Ansett Increases Market Share with East-West Purchase
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Ansett Group Move to Dominate Domestic Market With Acquisition of East-West Airlines.
For the second time in less than a month, East-West Airlines has been sold.
Never has a major Australian airline gone through a more convulsive period. During early July Perth millionaire, Mr Stan Perron acquired EWA from Ric Stowe’s Griffin Group and then on July 31 Sir Peter Abeles’s announced that TNT/News Corp had duly purchased the whole of the carrier’s assets from Mr Perron.
Mr Perron did not technically even get to control East-West, as officially his ownership of the carrier was not to have taken effect till August 1st. He thus set out to sell the airline to the Ansett Group once the initial Perron sale was announced earlier in July. Sir Peter had originally discussed part purchase of the airline with Ric Stowe back in late 1986, though at this time the discussions centred more around ATI being a non majority partner, something that ATI did not consider a viable proposition. When these discussions ended, Ric Stowe’s Griffin Group, which was losing heavily on East-West and facing an eroding revenue base through reduced coal prices, decided to go public and float the airline. At the time of the Perron sale it is believed that negotiations for a substantial share purchase were well down the track with a number of companies including Bob Ansett’s Budget group, Ariadne, Mayne Nickless and even Air New Zealand. Known in the finance world as Mr Ten Percent, Stan Perron had obviously done his homework well.
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