At the risk of assigning patterns to randomness, perhaps there are a few clues for the preliminary post-mortem.
Post #
1195
Originally Posted by Capt Kremin
I recall pilots recounting a conversation with Dixon, where stated that his accountants told him, to the week, when AN would go broke.
- Borghetti "knows" this - he understands the thinking in QF HQ. He knows how they break out the figures on competitors. In short, he knows QF's "know knows".
- Borgehetti probably has a good idea of the QF accounts & can reverse engineer the annual ASX figures to assess the true state of QF internals, again, knowing their thinking.
- Borghetti "knows" that Joyce would hold the 65% line in the sand and fight to the death.
- Borghetti knows that any over-capacity hurts QF more than Virgin (QANTAS Domestic chief executive Lyell Strambi has thrown down the gauntlet to competitor Virgin Australia, warning that he will add two planes for each one the smaller airline adds to protect the flying kangaroo's patch). ie every unit of over-capacity hurts QF twice as much.
- Borghetti probably hypothesises that Joyce wants to see Virgin killed Ansett style. Oldmate nails it:
Originally Posted by Oldmate
Plan was to run Virgin out of cash, create a monopoly, make big profits.
- Recalling Sun Tzu “Appear weak when you are strong, and strong when you are weak.” he just has to appear like things are grim. Of course, Borghetti has already tapped his shareholders for pre-approval, but not implemented the capital raising.
- Borghetti has set the trap for Joyce, sits back and waits. Joyce keeps punching, burning the cash pile. Just when Virgin appears to be out of cash, it raises capital.
- Joyce realises the trap, spits the dummy & cries foul. He then realised he has been outfoxed by Borghetti.
Revenge is a dish best served cold.