Fed: Lew, Fox back from European trip

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Fed: Lew, Fox back from European trip

MELBOURNE, Feb 12 AAP - Ansett's provisional owners touched down at Melbourne airporttoday, just in time for a Federal Court ruling crucial to the beleaguered airline's future.

Ansett administrators have applied to the court to rule on the legality of their decisionto continue to trade while losing $6 million a week, with Justice Alan Goldberg reservinghis decision until today.

The court heard Ansett had to stay in the air to be sold to the Tesna syndicate - headedby Melbourne businessmen Lindsay Fox and Solomon Lew - as a going concern.

Mr Fox and Mr Lew arrived back in Australia today after a five-day trip to Europe inwhich they signed a deal for new planes and met rival Richard Branson of Virgin.

Mr Lew told reporters at the airport he was confident Tesna would officially be Ansett'snew owner very soon.

"At the moment we're concentrating very, very heavily on finalising the deal with theadministrators," Mr Lew said.

"We should be in a position to close that deal over the next few days.

"Of course, we're still waiting for Sydney Airport (Corporation Ltd) to sign off (onthe terminal leases).

"Hopefully the (federal) government will give them a little push and help that alonga bit and that will make a big difference to Ansett."

Mr Fox said they signed the contract for new airbuses in France before flying to Englandto meet Sir Richard, but was coy on the details.

"His beautiful ducks on the pond, he's got a magnificent pond. I've never seen so manyducks and didn't have a gun," Mr Fox replied when asked about the meeting.

The discussions have been the subject of intense media scrutiny, including speculationthey involved merger or takeover talks.

"He's (Sir Richard's) been one of the first people in good discount aviation, it waswell worth having a chat with him," Mr Fox said.

Meanwhile, the Sydney Airports Corporation Ltd (SACL) said a conclusion to the negotiationsover the vital Sydney terminal lease was near after talks took a positive turn last week.

"Other issues had taken away the focus since then ... (but) we believe they (Tesna)has come around to seeing things our way," SACL spokesman Peter Gibbs said.

But on another front, Ansett still faces some problems.

Canberra Airport yesterday reportedly filed legal proceedings in the Federal Courtto seize back Ansett's terminals and convert them to a common-user facilities after thebreakdown of negotiations.

But Ansett administrator Mark Mentha said the new developments would not affect Tesna'sin-principle sale agreement signed last November.

Mr Mentha said Tesna's February 28 sale deadline remained absolute because administratorscontinued to lose $6 million a week to keep the airline flying.

AAP jlw/las/bwl

KEYWORD: ANSETT SECOND DAYLEAD