Kendell Airlines is to order 12 new 50-seat regional jets and take over a number of Ansett routes in south-eastern Australia and Queensland, beginning in November 1999. Ansett will withdraw services to Launceston, Hobart (except for a daily Melbourne-Hobart service), Rockhampton, Mackay, Coffs Harbour, and Ballina; between Canberra-Brisbane and Canberra-Adelaide; and reduce flights between Canberra and Melbourne/Sydney. Ansett has been losing more than A$1 million a week on these services. These moves will enable the airline to retire four BAe 146-300s and two Boeing 737-300s. Earlier, consideration had been given to transferring Ansett’s BAe 146s and the routes they served to regional operators such as Kendell. The decision to go for smaller jets will enable service frequency to be increased. The Embraer ERJ-145 and Canadair CRJ-200 are being considered for the Kendell order. Kendell currently operates Saab 340s and Metro 23s.