Ansett Airlines was started by Sir Reginald Miles in the year 1935. In the year 1940 many airlines in Australia were trying to seek governmental permission to increase their airfares, Ansett Airlines however decided to take a different approach of decreasing its in-flight services and making it a no-frill carrier and this strategy gained profitability for the airline. Many airlines were competing in this Australian market at the time of Ansett’s existence such as Australian National Airways (ANA) ans Trans Australian Airlines (TAA) and Qantas. To deal with the competition Ansett decided to buy shares in ANA, and became known as Ansett-ANA. The years that followed saw Ansett purchase the airline Mandated Air Lines (MAL) changing its name again to Ansett –MAL. The strategy that Ansett was applying to try and remain competitive in the Australian market with carriers like Qantas was, to try and buy out other airlines or shares in the competing airlines. By the year 2000 Ansett was heading to bankruptcy and Air New Zealand decided to buy the airline with the hope that it would get some share of dominance operating in the Australian market. It was in February of 2000 that full ownership of Ansett went to Air New Zealand who had to bid with Singapore Airlines who were also interested in this collapsing airline. Once in the ownership of Air New Zealand the airline became known as Ansett New Zealand. On the 4th of March 2002 after only fifteen months under ownership of Air New Zealand the airline declared bankruptcy and collapsed.

      At the time of purchase of the airline Air New Zealand ranked 39th in the world and Ansett was at the 32nd ranking. This showed that Ansett was actually performing better than Air New Zealand at the time. The financial position of Air New Zealand at the time was unstable, even though it raised money to buy this bankrupt airline it did...