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TPC Hands Down East-West Decision
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Trade Practices Commission Demands That Ansett Relinquishbulk of East-West Acquisition
The November 10 decision by the Trade Practices Commission that the Ansett group must withdraw from its ownership of much of EWA/Skywest is seen as indicating that in years to come the TPC will not merely be a rubber stamp for any and every airline consolidation within a deregulated Australia.
The TPC found that Ansett’s acquisition of all of the East-West/ Skywest empire plus majority shareholdings in both Kendell Airlines and Lloyd Aviation were contradictory to a competitive market environment. An Ansett owned company, Morael, had acquired all of EWA while another ATI associate company. Bodas, held a controlling interest in both Kendells and Lloyds. Two airlines that for a time were engaged in direct competition against each other in South Australia. Morael will now dispose of much of the EWA/Skywest routes and assets while Bodas will withdraw from Lloyds commuter services. Additionally, ATI or any of its subsidiaries will also be denied shareholdings in any competing air carrier.
Consequently the TPC has advised that ATI must sell off all of the East-West routes in WA. ATI is to also withdraw from the Skywest commuter network in that State but will retain its ownership of the Skywest charter and GA services division which also includes the lucrative Coastwatch contract.
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