Ansett is as unhealthy as Qantas is healthy. Its domestic operating costs approach 15 Australian cents per ASK while Qantas, which has trimmed about A$1.5 billion from group operating costs over two years, has passed on significant cost reductions to its domestic network. Over the same period, its strong brand image and frequent flier programme have wrested back almost 10 percentage points of market share from Ansett. The consequent slide in Ansett's domestic yields and loads, combined with Ansett International's exposure to Asia, have the group barely breaking even with a margin of less than 1%. After a near two-year review, Ansett chief executive Rod Eddington has announced the first wave of changes. A number of Australian east coast regional ports will be handed to low-cost subsidiary Kendell, which will buy regional jets for the first time, saving Ansett about A$50 million a year.