NEW NO-FRILLS ANSETT MAY EXTEND FLIGHTS UNTIL CHRISTMAS.

SYDNEY, Oct 1 Asia Pulse - Ansett's administrators have indicated they may extend their 12-week ticket guarantee deal with the federal government to take advantage of Christmas/New Year travel demand.

Administrator Mark Korda today flagged an extension to the three-month arrangement ahead of talks tomorrow with five potential buyers for the collapsed airline.

Ansett yesterday resumed flights on the Sydney-Melbourne route, to the delight of staff left without work when the airline was grounded a fortnight ago.

Flights on the no-frills service were running at just under 50 per cent capacity, with passengers served only water.

Mr Korda said Ansett needed 62 per cent passenger capacity to break even. He expected Ansett to break even or run at a "small loss" at the end of the 12 weeks.

He said ticket sales over the next two weeks would be assessed and the deal under which the federal government guarantees a flight or a ticket refund could be extended beyond the current 12 weeks.

"We'd like to see how we go the next two weeks and then what we would hope would be a rolling 12 weeks, always taking bookings in advance and then we'll roll that for 12 weeks or we could fly without that guarantee," Mr Korda told the Nine Network.