Warbird Information Exchange

Early in 1936 Ivan Holyman approached the Adelaide Steamship Company, owners of Adelaide Airways, with a view to an amalgamation aiming to become Australia's most powerful airline. Adelaide Airways had recently taken over West Australian Airways and the new combine would thus effectively control airline traffic between Perth, Adelaide, Melbourne and Sydney. With funding from the Orient Steam Navigation Company a new Australian National Airways was registered on 13 May 1936, and began services under its new name on 1 July 1936. It acquired a second DC-2 VH-UXJ Loongana that began a twice-weekly service between Melbourne and Perth on 21 December 1936.

Meanwhile efforts to expand operation northwards to Queensland were being thwarted by Airlines of Australia (AoA), its main competitor. Established in 1931 as New England Airways by G.A. Robinson and Keith Virtue of Lismore, it operated services in northern New South Wales and between Sydney and Brisbane, Queensland, expanding further into Queensland by taking over a number of struggling regional airlines during the mid 1930s. It was restructured as AoA in 1934 with funding by an investment group the British Pacific Trust. In 1936 it introduced Stinson Model A airliners in a regular service between Sydney and Brisbane, and later acquired Douglas DC-2s and Douglas DC-3s. After several months of fruitless negotiations with its financiers, ANA managed to gain a controlling interest in AoA in April 1937, although the two airlines retained separate public identities until 1942. Between them the two airlines operated four DC-2s and four DC-3s by the time of the outbreak of World War II, as well as several other aircraft including two Model As, two D.H.84s, two D.H.86s and nine de Havilland D.H.89 Rapides.