adopted a policy of state ownership of airlines. On 22 December 1944, acting prime minister Frank Forde announced the government would legislate to nationalise all interstate airlines. Their prime target was Australian National Airways (ANA). Following the passage of the Australian National Airlines Act on 16 August 1945 the private enterprise airlines mounted a challenge in the High Court. When this was successful the government changed its strategy and formed the Australian National Airlines Commission which was to operate as Trans Australia Airlines (TAA), competing directly with ANA. Postwar Expansion 1946–1956 Faced with being caught in the middle of a titanic struggle between Australian National Airlines and the new government owned airline, he offered to sell Ansett Airways to the Commonwealth government as a going concern. Although the idea had some attraction to the Chifley government, nothing came of the proposed deal. Ansett decided to continue his airline business while building up the Ansett Motors side. As he gradually obtained new routes out of Melbourne, he made the decision to position Ansett Airways as a low cost competitor offering no-frills flights between the major capitals. He cut the standard fare being offered by ANA and TAA by 20 per cent. Douglas DC-3 aircraft normally seated 21 passengers, three abreast. He installed narrower seats to create a four abreast 28 passenger layout. There was little in the way of catering or other amenities. The strategy was a success, although TAA quickly adopted the lower price he was offering. ANA ignored him and suffered for it. TAA introduced the new 'Tourist Class' offer on its Vickers Viscount aircraft in 1955. Both the coachline and road freight businesses were highly successful businesses and by 1962, Pioneer Coaches was running 245 buses throughout the country. In 1956, he established an airfreight business using Aviation Traders Carvairs which were Douglas DC-4s converted to enable cargo to be loaded through the nose. Ansett was the first Australian airline to move into the package holiday business. In 1947, Ansett started offering services to resorts on the Great Barrier Reef using Catalina flying boats. These services established the Great Barrier Reef as a destination for tourists. ATI subsequently took over its rival, Barrier Reef Airways. Ansett developed Hayman Island into a major holiday resort in the Whitsunday region. BRA's Short S.25 Sandringham flying boats were later used by Ansett Flying Boat Services on the Sydney-Lord Howe Island route.