In 1936, Reginald Ansett founded Ansett Airways. Ansett Airways began their strive to success flying interstate flight services in 1937 in competition with Airlines of Australia and Australian National Airlines (ANA). In 1945, the ANA commission implemented the ANA act 1945 – the Two-Airline policy which stated that TAA (Trans Atlantic Airways) would be the main interstate airline being able to fly solely interstate (no flights within any one state). Being government owned, the TAA acted as a monopoly in the airline industry as it had a low cost structure compared to Ansett. Later, the commission admitted QANTAS Airways as the sole international airline in and out of Australia.

Ansett decided to differentiate to gain competitive advantage, even though direct competition was not allowed - Ansett started offering lower rates and creating two classes on its aircraft. Ansett bought the ANA and became Australia’s main private airline. In 1981, the new CEO of TNT, Peter Abeles (TNT owned 50% of the shares in Ansett), continued the diversification strategy implemented by Reginald Ansett, and continued exp

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