The horse we keep company with suggests the real number of Other People's money blown on the ill conceived, poorly thought out and non compliant foray in Hong Kong by little Napoleon was north of AUD $250,000,000.00
Presently there are two 'associate entities', where Qantas keep the cash flowing from Coward street and the beneficial owner overseas contributes very little if anything, and another where Qantas claim 'control' in order to account for it in the Jetstar Segment. Doing this hides its actual performance, which if it were known would serve as textbook proof of stupidity in action (at least for Qantas shareholders) Doing this disguises its actual cash flow shortfalls. The Singaporean owner has the correct passport to be incorporated in Singapore, but he contributes no capital.
Jetstar Asia in 14 years is yet to make anything like a real profit, fancy accounting aside the business isn't worth a cent. It has cost a lot of money to keep the illusion from collapsing as its accounts attest.
In Vietnam, one ponders what exactly the classified cables from DFAT contained in order to get the two JQ executives out of Vietnam. These cables remain classified and as such, the ransom Qantas shareholders pay (on a continuing basis) is not disclosed.
Japan is interesting too as the 'partner' remains supportive of the business but it is not going to contribute any capital. So does the Qantas shareholder pay 100% of the cost for 49% of the profit?
None of these 'businesses' have ever delivered a tangible profit.
Assuming this one (HK) actually complies with the PPB (Principal Place of Business) requirements, will Qantas attempt as they do with the other businesses, provide all the working capital and continue to source the aircraft presumably at favourable lease rates? They need to sell a lot of seats and distribute a lot of 'profit' to break even! Wonder which ivy league bunch of fools do 'diligence' this time?
Immersed in his own hero myth and loving the face looking back at him, Mr Joyce is only too happy to gain more head time in the media such that despite losing an alleged $250 million last time, they rush in again.
Qantas need a new fleet, something that pays for the fantasy that surrounds the self proclaimed creation of low fare airlines which Mr Joyce whispers when among friends.. Running an airline is hard work and nowhere near as fun as megaphone diplomacy, social engineering and being the big man about town.
Last edited by Rated De; 8th Apr 2018 at 06:45.