A weekly re-cap of the events that have made news in Cairns over the past week.

Monday October 8, 2001 35th Edition

The news is mixed this week, with positive announcements regarding the future of ANSETT in Australia hot on the heels of disastrous news as Malaysian Airlines announces that it will be ceasing flights into Cairns as of February 2001. Thrown into the middle of the current state of turmoil is the announcement of a Federal Election on November 10.

Indications that ANSETT will be back in the sky over Cairns soon
As the impact of the collapse of ANSETT Airlines, Australia's second largest domestic carrier, continues to be felt across the country, restricted services have started flying under an arrangement with the company's administrator and some ANSETT staff. Negotiations are ongoing between various parties to get the financially crippled airline back to maximum capacity as soon as possible.

Parent company Air New Zealand has thrown the airline a lifeline by offering a $200 million cash injection to wipe out ANSETT's debt, allowing any new operators to take the company over with a debt free status. Whilst the exact position of ANSETT is still unclear to the general public there is considerable effort between the administrator, the Government and p to five interested private parties to get the airline back in the air, a peak capacity.

Meanwhile, the impact of the ANSETT collapse has hit Cairns hard, with over 100 tourism operators being forced to wipe off large debts owed by ANSETT, at least in the short term, and the loss of substantial numbers of forward bookings. Accommodation based businesses and Great Barrier Reef Cruise operators have been the hardest hit in Cairns.

Election date called for November 10
All Australians will be going to the polls on November 10. This is a Federal Election, with the two main contenders being the existing Prime Minister, John Howard and the Federal Leader of the Opposition, Kim Beasley. The election has been declared good news, particularly for regional centres like Cairns, that often benefit from pre-election promises to develop infrastructure and jobs. Following the American terrorist attack and the collapse of ANSETT, the future of the tourism industry is uncertain and expected to be a major election issue.

Another blow for Cairns - Malaysian Airlines out
Malaysian Airlines has announced that it will stop flying to Cairns as of February 2002. This announcement has come as a major blow to an already ailing tourist industry that up until several months ago was showing the most positive signs of growth in over five years. Rationalisation of the airline industry in general is being attributed to the announcement as Malaysian airlines pulls out from a further twelve destinations worldwide.

Warm, dry weather set to continue
The tropical North's continuing dry spell is expected to continue for the next three months at least. Short to medium term forecasts released by the Bureau of Meteorology indicate that below average rainfall and higher than normal temperatures will be experienced between now and Christmas. It is worth noting however that the same organization stated that last cyclone season was going to be one of the most active on record, and of course, it was one of the quietest.

A touch of Hollywood in Cairns
Former Sydney-sider, Robert Luketic, has been living in Hollywood for the past few years, working in the movie capital of the world as a Director. In Australia to promote his latest movie, Legally Blonde, Mr Luketic visited Cairns as part of the Australia wide promotional tour. The movie has been a box office smash with gross earnings on the first weekend that it was released in the US at $96 million. The movie has been described as "one of the highest grossing comedies in the history of MGM".

Cairns Regional Gallery continues to attract more visitors
The Cairns Regional Gallery has once again shown an increase in visitor numbers this year, particularly with local residents. This is being attributed to the diverse nature of displays held at the Gallery and the growing awareness regarding the quality of the Gallery and the art displayed.