"Exploiting Asian Markets" - Irish Suicide.
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Sunfish.
You are right, I didn't consider those points. Perhaps the same way that AJ is not considering them.
Joyce is going to go ahead anyhow. He wants to be seen as 'the big man' that broke the pilots. You can bet there will have been phone calls of encouragement from Dixon and others to him telling him to 'hold his nerve'.
Either way we are stuffed
You are right, I didn't consider those points. Perhaps the same way that AJ is not considering them.
Joyce is going to go ahead anyhow. He wants to be seen as 'the big man' that broke the pilots. You can bet there will have been phone calls of encouragement from Dixon and others to him telling him to 'hold his nerve'.
Either way we are stuffed
Sunfish,
You seem a little asiaphobic about investing in Asia.
You have highlighted two examples of Australian 'individuals' that 'may' have contravened local laws. What you have failed to grasp is that these companies continue to trade in these countries and continue to return profits to their relevant shareholders.
Why don't you pay a little visit to some large multinationals that have invested in Asia and see what they have to say? Ford, GM, Fiat, Citibank, Volkswagen, ANZ, NAB all seem to be comfortable with their positions in Asia. AirAsia has now established two companies, one in Malaysia and the other in Thailand which now covers a large section of Asia. Thailand still has ownership restrictions but Malaysia is quite open to investment, maybe that's where AJ will be parking some airplanes?
In the words of a friend who works with Merrill Lynch in Asia "Asia with all it's faults is too big to ignore."
To finish off with here is a little article I found:
You seem a little asiaphobic about investing in Asia.
You have highlighted two examples of Australian 'individuals' that 'may' have contravened local laws. What you have failed to grasp is that these companies continue to trade in these countries and continue to return profits to their relevant shareholders.
Why don't you pay a little visit to some large multinationals that have invested in Asia and see what they have to say? Ford, GM, Fiat, Citibank, Volkswagen, ANZ, NAB all seem to be comfortable with their positions in Asia. AirAsia has now established two companies, one in Malaysia and the other in Thailand which now covers a large section of Asia. Thailand still has ownership restrictions but Malaysia is quite open to investment, maybe that's where AJ will be parking some airplanes?
In the words of a friend who works with Merrill Lynch in Asia "Asia with all it's faults is too big to ignore."
To finish off with here is a little article I found:
In modern years, multinational companies have accelerated their large investment in China. McDonald’s forlorn has built 52 factories in China. ABB Group established 20 common ventures. Volkswagen AG set up four large seam ventures and one solely-invested enterprise with a compute investment of U.S.$ 2 billion. In addition, Boeing has three large united ventures, and the key components of 3100 Boeing planes now hurried worldwide were made in China. Moreover, with the relocation fever, multinational companies are intensifying their localization stratagem of the “origin in China.”
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I would rather work for Garuda. Their rep is terrible, but at least they have a forward looking CEO, with balls and brains, and a plan to improve the airline.
Not gut it into some kind of low cost quasi long haul hedge fund.
Not gut it into some kind of low cost quasi long haul hedge fund.
Thread Starter
Kaboy:
Kaboy, I'm not Asiaphobic at all. After all Asian trading paid my school fees 
My Dad traded in Asia from 1935 to the mid 1970's. We did very nicely thank you.
What I am on about is the lunacy of waking up one morning and saying; "Hey! Look at all these huge Asian markets! I want to get me some of that today!" This is what Qantas appears to have done.
As you may know, Asian business is about relationships that don't just develop overnight. It takes years of patient cultivation to get to the point where someone might decide they like the idea of doing business with you. I know for a fact that some Chinese companies have waited for overseas reps to make Five straight years of sales visits before they got their first order just to see whether they are "serious" about doing business in Asia. They take a long view and "Face" is also everything.
So how much "face" does Qantas have in Asia? How much "Face" do the members of the Qantas Board and Senior management have? Where is the Qantas commitment to Asia, or are they just another Western company that smells a new market and wants to get rich quick by screwing over Asians?
These are the questions that Asians will be asking about Qantas, and if all they get is Olivia Wirth Bullshyte, they will draw the right conclusions.
The companies who are making money in China have invested decades of their time, let alone capital, in producing something that is mutually beneficial to both parties. I would argue that not only is Qantas incapable of exhibiting that attitude, it has nothing to offer Asia that Asians cannot provide cheaper and better for themselves.
You seem a little asiaphobic about investing in Asia.
You have highlighted two examples of Australian 'individuals' that 'may' have contravened local laws. What you have failed to grasp is that these companies continue to trade in these countries and continue to return profits to their relevant shareholders.
Why don't you pay a little visit to some large multinationals that have invested in Asia and see what they have to say? Ford, GM, Fiat, Citibank, Volkswagen, ANZ, NAB all seem to be comfortable with their positions in Asia. AirAsia has now established two companies, one in Malaysia and the other in Thailand which now covers a large section of Asia. Thailand still has ownership restrictions but Malaysia is quite open to investment, maybe that's where AJ will be parking some airplanes?
In the words of a friend who works with Merrill Lynch in Asia "Asia with all it's faults is too big to ignore."
You have highlighted two examples of Australian 'individuals' that 'may' have contravened local laws. What you have failed to grasp is that these companies continue to trade in these countries and continue to return profits to their relevant shareholders.
Why don't you pay a little visit to some large multinationals that have invested in Asia and see what they have to say? Ford, GM, Fiat, Citibank, Volkswagen, ANZ, NAB all seem to be comfortable with their positions in Asia. AirAsia has now established two companies, one in Malaysia and the other in Thailand which now covers a large section of Asia. Thailand still has ownership restrictions but Malaysia is quite open to investment, maybe that's where AJ will be parking some airplanes?
In the words of a friend who works with Merrill Lynch in Asia "Asia with all it's faults is too big to ignore."
My Dad traded in Asia from 1935 to the mid 1970's. We did very nicely thank you.What I am on about is the lunacy of waking up one morning and saying; "Hey! Look at all these huge Asian markets! I want to get me some of that today!" This is what Qantas appears to have done.
As you may know, Asian business is about relationships that don't just develop overnight. It takes years of patient cultivation to get to the point where someone might decide they like the idea of doing business with you. I know for a fact that some Chinese companies have waited for overseas reps to make Five straight years of sales visits before they got their first order just to see whether they are "serious" about doing business in Asia. They take a long view and "Face" is also everything.
So how much "face" does Qantas have in Asia? How much "Face" do the members of the Qantas Board and Senior management have? Where is the Qantas commitment to Asia, or are they just another Western company that smells a new market and wants to get rich quick by screwing over Asians?
These are the questions that Asians will be asking about Qantas, and if all they get is Olivia Wirth Bullshyte, they will draw the right conclusions.
The companies who are making money in China have invested decades of their time, let alone capital, in producing something that is mutually beneficial to both parties. I would argue that not only is Qantas incapable of exhibiting that attitude, it has nothing to offer Asia that Asians cannot provide cheaper and better for themselves.
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Spot on Airborne.
I mean really,what are they thinking. As somebody posted earlier, Asia is sown up. You've got fantastic airlines serving the region and beyond along with the new low-cost arrivals catering to the masses. Why would 'Joe Wong' even contemplate ditching his zealously accrued status with the Asian majors so he can go across to "Qantasia". This new "premium" airline fascinates me. What on earth are they going to call it?? Doesn't the sale act forbid the word Qantas being used on such a venture?? I dont know... It just doesn't make sense on so many levels. I reckon this can't/won't fly.
Bring on 24th of August.
And on that point, it shows the contempt the company has for it's people to make them hang on like this. Who DOES this sort of stuff???
It really beggars belief!!
I mean really,what are they thinking. As somebody posted earlier, Asia is sown up. You've got fantastic airlines serving the region and beyond along with the new low-cost arrivals catering to the masses. Why would 'Joe Wong' even contemplate ditching his zealously accrued status with the Asian majors so he can go across to "Qantasia". This new "premium" airline fascinates me. What on earth are they going to call it?? Doesn't the sale act forbid the word Qantas being used on such a venture?? I dont know... It just doesn't make sense on so many levels. I reckon this can't/won't fly.
Bring on 24th of August.
And on that point, it shows the contempt the company has for it's people to make them hang on like this. Who DOES this sort of stuff???
It really beggars belief!!
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These are the questions that Asians will be asking about Qantas, and if all they get is Olivia Wirth Bullshyte, they will draw the right conclusions.
The companies who are making money in China have invested decades of their time, let alone capital, in producing something that is mutually beneficial to both parties. I would argue that not only is Qantas incapable of exhibiting that attitude, it has nothing to offer Asia that Asians cannot provide cheaper and better for themselves.
The companies who are making money in China have invested decades of their time, let alone capital, in producing something that is mutually beneficial to both parties. I would argue that not only is Qantas incapable of exhibiting that attitude, it has nothing to offer Asia that Asians cannot provide cheaper and better for themselves.
Sunfish's last post speaks volumes but I fear it's all too late for Qantas.
Qf management will ignore this type of common sense and blindly forge ahead because they are, after all, the "smartest guys in the room".
Qf management will ignore this type of common sense and blindly forge ahead because they are, after all, the "smartest guys in the room".
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AirborneSoon hit the nail on the head!
What is frustrating is that we can all see it is doomed to failure but we are not even getting paid to know it! Don't worry Alan will get his 11 Million incentive bonus then go to AirNZ. Oh god!
What is frustrating is that we can all see it is doomed to failure but we are not even getting paid to know it! Don't worry Alan will get his 11 Million incentive bonus then go to AirNZ. Oh god!
The Age
Jetstar pan-Asia plan has flights to Beijing
"JETSTAR is expected to begin flights to Beijing after finally gaining airport landing slots but will have to wait longer before it can fly on to Europe because it lacks the necessary traffic rights.
Jetstar's expansion in Asia comes as speculation grows about the loss-making routes its parent, Qantas, will cut as part of a review of its international operations.
Analysts believe the routes most likely to be ditched include those to Buenos Aires and Bangkok.
Advertisement: Story continues below
Qantas flies to Europe via Singapore and Bangkok and it is considered Jetstar will take over services to the Thai capital.
Jetstar chief executive Bruce Buchanan is due to make a ''significant announcement'' in Beijing today about the no-frills airline's pan-Asia network.
It was unclear yesterday whether Jetstar would be offering direct flights between Australia and Beijing or its Singapore affiliate, Jetstar Asia, widening its reach into the fast-growing Chinese market. Jetstar Asia's chief, Chong Phit Lian, is also due in Beijing for the ''network announcement''.
Jetstar does not offer direct flights between Australia and China but Jetstar Asia has services from its Singapore base to destinations on the Chinese mainland, including Shanghai and Guilin. Jetstar has been seeking landing slots in Beijing for the past three years.
In March, the Australian and Chinese governments agreed to increase the cap on the number of seats on flights between the two countries. Chinese airlines have boosted flights to Australia over the past year.
Qantas has previously flagged interest in building a base in China as part of a launch pad for flights by itself or Jetstar to Europe. The group does have the necessary air rights from Chinese authorities to fly to Europe but it is yet to gain approval from European regulators.
Qantas operates six flights a week, using Airbus A330s, between Sydney and Shanghai. The airline does not fly to Beijing.
Shares in Qantas fell the most in four months yesterday, closing down 9.5¢ at $1.84."
Read more: Jetstar pan-Asia plan has flights to Beijing
"JETSTAR is expected to begin flights to Beijing after finally gaining airport landing slots but will have to wait longer before it can fly on to Europe because it lacks the necessary traffic rights.
Jetstar's expansion in Asia comes as speculation grows about the loss-making routes its parent, Qantas, will cut as part of a review of its international operations.
Analysts believe the routes most likely to be ditched include those to Buenos Aires and Bangkok.
Advertisement: Story continues below
Qantas flies to Europe via Singapore and Bangkok and it is considered Jetstar will take over services to the Thai capital.
Jetstar chief executive Bruce Buchanan is due to make a ''significant announcement'' in Beijing today about the no-frills airline's pan-Asia network.
It was unclear yesterday whether Jetstar would be offering direct flights between Australia and Beijing or its Singapore affiliate, Jetstar Asia, widening its reach into the fast-growing Chinese market. Jetstar Asia's chief, Chong Phit Lian, is also due in Beijing for the ''network announcement''.
Jetstar does not offer direct flights between Australia and China but Jetstar Asia has services from its Singapore base to destinations on the Chinese mainland, including Shanghai and Guilin. Jetstar has been seeking landing slots in Beijing for the past three years.
In March, the Australian and Chinese governments agreed to increase the cap on the number of seats on flights between the two countries. Chinese airlines have boosted flights to Australia over the past year.
Qantas has previously flagged interest in building a base in China as part of a launch pad for flights by itself or Jetstar to Europe. The group does have the necessary air rights from Chinese authorities to fly to Europe but it is yet to gain approval from European regulators.
Qantas operates six flights a week, using Airbus A330s, between Sydney and Shanghai. The airline does not fly to Beijing.
Shares in Qantas fell the most in four months yesterday, closing down 9.5¢ at $1.84."
Read more: Jetstar pan-Asia plan has flights to Beijing
and the key components of 3100 Boeing planes now hurried worldwide were made in China.
Updated: 4:14 pm PDT July 11, 2011
SEATTLE -- Boeing has put its 787 assembly line in Everett on hold for about a month because of parts shortages and "engineering changes,"
SEATTLE -- Boeing has put its 787 assembly line in Everett on hold for about a month because of parts shortages and "engineering changes,"
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Ok then let's move all the mining jobs overseas! They can Fly in, Fly out probably cheaper than now! If you want to make us global let's do it and it won't be just mining it will be construction, truck drivers, you name it!
By the way DS products failed so you can't really take advice from him
By the way DS products failed so you can't really take advice from him
Good news for Thai if they scrap bkk. I think most would agree the airport at bkk is far far better than sin. Is there really that much direct traffic from australia to sin, i would have thought it a high percentage would be flying onward. Where as bkk is a tourist holiday destination as well.
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"If they (Qantas) don't move virtually everything up into Asia call centres, maintenance, any overhead they can they will go broke."
I can't for the life of me understand this corporate fetish where all AJ, BB and others want to do is ship everything off shore. In less than 10 years when this current lot are long gone with millions of dollars in golden handshakes, someone will have to come in an clean the whole cock rotting mess up, and they'll be very lucky if there's anything left to salvage.
On a good note though, I hear AJ and the rest of his buddies is going to lead by example and move to Singapore or Beijing first. This is so they can understand better the impact of their imbicillic ideas on the business. They will be working under local conditions, with local rates of pay in local currency, under local labour laws. Good onya boys and girls!
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Dick Smith Foods: Australian Made Food, Australian, Foreign, Import, Export, Geographic, Electronics | BuyAustralianMade.com.au
Zero credibility
Dick Smith Foods supports products which are produced by Australian owned businesses, which are Australian grown and made, and those Australian owned companies which operate in a highly ethical manner.
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"If they (Qantas) don't move virtually everything up into Asia call centres, maintenance, any overhead they can they will go broke." (Dick Smith's article).
Funnly enough, plenty of Australian businesses are moving away from overseas call centres because, Da Da Da Dah (drum roll)... they piss the customers off.
Having recently re-located Worrals HQ I've had cause to ring about fifteen different multi million dollar Australian service providers. Two banks, insurers, telcos, energy providers, the list went on (and on
). They all had Aussie call centres and all the staff were helpful. These companies have learned the hard way that if you don't have call centre staff that speak English and have a basic grasp of the service they're supposed to provide the customers quickly move elsewhere. One of the major banks is even using 'talk to a real person' in their sales pitch. They're not quite saying 'We've got real Orstrayans on the blowers' but the inference is obvious.
Most customers who call a call centre are stupid and/or in a tizz because something has gone horribly wrong. That's why they needed to call in the first place. A lousy call centre experience simply ensures that next time the stupid/freaked out person needs that particular product they'll go elsewhere., particularly if it's an allegedly premium product. For a LCC (or a really cheap internet provider) people will sometimes put up with a bit of a runaround, but Qantas Intl isn't a low cost product by any reckoning.
They'll also tell everyone they know, meet or sit next to on the bus that Company X sucks, because their call centre people couldn't help. Even Telstra figured this out eventually.
Last edited by Worrals in the wilds; 12th Jul 2011 at 21:39. Reason: missed a Da
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To Alan and Friends...
I do not know who wrote this, but ALL must see. An absolutely beautiful piece that truly dictates what will happen to QF. To the person that wrote it, apologies, but I do take my hat off to you. Brilliant.....
Jetstar "Exploiting Asian Market" - Alan Joyce's Irish suicide - an analysis"- sent to AH$ for posting...
Please let everyone see this. The end of the Q as we all know it.....unless....
Jetstar "Exploiting Asian Market" - Alan Joyce's Irish suicide - an analysis"- sent to AH$ for posting...
"Exploiting Asian Markets" - Irish Suicide.
The CEO of Qantas has apparently said words to the effect that Qantas is going to "Exploit rapidly growing Asian markets."
I am so incensed by the lunacy of The Qantas Board and Management that I will go on record now and say that there is not a snowballs chance in hell that Qantas is going to: "Exploit rapidly growing Asian markets."
That is an Asian market and it is going to be exploited by Asians for Asians and to the benefit of Asian shareholders.
The only "impact" that Qantas is going to make on that market is a small stain on an Asian mattress someplace where Qantas shareholders cried themselves to sleep after losing their entire capital on an unprofitable failed Asian joint venture.
Pardon my French, but FFS, the history of Western investment in "Asian Markets" is a ******* cemetery of failed business ventures where the West has been efficiently skinned by their erstwhile Asian partners. Jetstars adventures in Vietnam should have been an absolute warning to them.
It takes what are called "Old China Hands" at least Thirty years of trading experience to engage profitably with China and the East, and this little Irish bowel movement thinks he can just walk in and make off with some profits?
Here is what is going to happen to you Alan;
1) You are going to be encouraged by your Asian partners to invest every bit of spare cash you have, or you can borrow, in your Asian operations.
2) You are going to be encouraged to invest your management time in your Asian operations to the exclusion of everything else.
3) You will be encouraged to move as much of your operations and employees to Asia as is physically possible.
4) In support of this strategy, you will be wined and dined by everyone from the Asian Government and business community from the top down. The continuous mantra being thrown in your direction will be "huge Asian markets."
5) At some point a few years from now, a stock market analyst will sound a warning that Qantas is now balls deep in Asia and that any downturn or disturbance in Asian markets will severely impact not just the Qantas International markets, but the Qantas Domestic market, which by then will have been "rearranged" to have synergies with the new you beaut Qantasia International (read deep discounts for Asian travelers plus Asian maintenance and crews, etc.).
6) The warnings won't be heeded. Remaining institutional investors who were wondering exactly what the Qantas sustainable competitive advantage in Asia really was will quietly exit. Qantas will start borrowing from the banks, who are always too stupid to see where companies are heading.
7) Within a year the cupboard is bare. Qantas is in hock to its eye teeth and still waiting for profits to be generated by the "huge Asian Markets". The revenue will be there, its just that everyone (the Asian partner, airports, lessors, maintenance organisations, manufacturers, finance houses, fuel suppliers, catering, ATC, etc. etc) seems to be making a dollar or two of profit except Qantas. Funny that.
8) Getting desperate for cash, Qantas tries to rearrange its finances and perhaps repatriate some funds to Australia.... and runs smack into a concrete wall of uncompromising Asian Governments, regulators, financial institutions and a less than helpful but"Oh so sorry" Asian "Partner".
Perhaps you like to sell your business? We make you velly good offer?
The Qantas Sale Act will be no help because there is nothing left to sell.
That is what is going to happen to Qantas Alan. You have absolutely no experience whatsoever in operating in Asian markets and neither has Qantas apart from flying in, filling up and departing, yet you think that running an LCC operation in a bog in Ireland is suitable experience for operating to the shores of the Middle Kingdom?
Take the old Asian custom of "gifts" also know in vulgar terms as kickbacks. How are you going to deal with the necessity of those Alan? Australian law prohibits them, but I guess that the Qantas auditors and your own "robust internal processes" will keep you safe.
Well, except that they didn't, did they?
Qantas one of 11 airlines fined $1.1 billion for rigging cargo prices | The Australian
Quote:
The fine comes three years after Qantas was fined $40 million for price-fixing in the North American air cargo market.
In 2008, Qantas also agreed to pay a fine of $20 million under a deal reached with the Australian Competition and Consumer Commission over the European price-fixing cartel.
Never mind Alan, the Board knows how to deal with the thorny problem of Asian business customs. They will keep you safe. Leigh Clifford comes from Rio Tinto. They know all about Chinese corruption don't they?
Rio Tinto mops up after China bribery mess | The Australian.
So how are you going to do the "exploiting" Alan? Tell us about the mass of trained Qantas managers who know instinctively what to do when there appear to be employees on the payroll that have never been seen; when invoices appear that cannot be reconciled. What happens when you discover that the security guards on your stores and property exist to prevent you from accessing them after hours when the real business is being conducted? Do you understand that you had better give your Chinese managers about Ten percent of the shareholding lest they be enticed away to your loss? Have you ever had to write on a Six million dollar invoice "Please do not ask for credit as refusal often offends", Alan? Alan? Tell us about your vast experience of the orient! Do you like Chinese food? Is that it?
Somebody should tell this bog Irish idiot that he is not doing business with another Belgium or Holland. He knows nothing about the East - where business is played by rather different rules. Just ask Cathay and Swire, they have only been in the game for what? Two hundred years? ..And you are going to encroach on their territory?
It is perfectly clear who is going to do the "exploiting" in this transaction, and it won't be Qantas. You come to this market with zero expertise, and you are too stupid to understand that you have no understanding of what is required.
....and finally. The Board and management of Qantas keep harping about generating an "acceptable" return on Capital invested in the international business.......
Asia is the home of the concept of "Patient Capital"; exactly how does the long term Asian time horizon sit with your need to generate "Acceptable Returns" every year?
I can tell you right now that it doesn't. Wait till your business partner says: "Yes Alan, I know we are making a loss now, but in Ten years time!"
The CEO of Qantas has apparently said words to the effect that Qantas is going to "Exploit rapidly growing Asian markets."
I am so incensed by the lunacy of The Qantas Board and Management that I will go on record now and say that there is not a snowballs chance in hell that Qantas is going to: "Exploit rapidly growing Asian markets."
That is an Asian market and it is going to be exploited by Asians for Asians and to the benefit of Asian shareholders.
The only "impact" that Qantas is going to make on that market is a small stain on an Asian mattress someplace where Qantas shareholders cried themselves to sleep after losing their entire capital on an unprofitable failed Asian joint venture.
Pardon my French, but FFS, the history of Western investment in "Asian Markets" is a ******* cemetery of failed business ventures where the West has been efficiently skinned by their erstwhile Asian partners. Jetstars adventures in Vietnam should have been an absolute warning to them.
It takes what are called "Old China Hands" at least Thirty years of trading experience to engage profitably with China and the East, and this little Irish bowel movement thinks he can just walk in and make off with some profits?
Here is what is going to happen to you Alan;
1) You are going to be encouraged by your Asian partners to invest every bit of spare cash you have, or you can borrow, in your Asian operations.
2) You are going to be encouraged to invest your management time in your Asian operations to the exclusion of everything else.
3) You will be encouraged to move as much of your operations and employees to Asia as is physically possible.
4) In support of this strategy, you will be wined and dined by everyone from the Asian Government and business community from the top down. The continuous mantra being thrown in your direction will be "huge Asian markets."
5) At some point a few years from now, a stock market analyst will sound a warning that Qantas is now balls deep in Asia and that any downturn or disturbance in Asian markets will severely impact not just the Qantas International markets, but the Qantas Domestic market, which by then will have been "rearranged" to have synergies with the new you beaut Qantasia International (read deep discounts for Asian travelers plus Asian maintenance and crews, etc.).
6) The warnings won't be heeded. Remaining institutional investors who were wondering exactly what the Qantas sustainable competitive advantage in Asia really was will quietly exit. Qantas will start borrowing from the banks, who are always too stupid to see where companies are heading.
7) Within a year the cupboard is bare. Qantas is in hock to its eye teeth and still waiting for profits to be generated by the "huge Asian Markets". The revenue will be there, its just that everyone (the Asian partner, airports, lessors, maintenance organisations, manufacturers, finance houses, fuel suppliers, catering, ATC, etc. etc) seems to be making a dollar or two of profit except Qantas. Funny that.
8) Getting desperate for cash, Qantas tries to rearrange its finances and perhaps repatriate some funds to Australia.... and runs smack into a concrete wall of uncompromising Asian Governments, regulators, financial institutions and a less than helpful but"Oh so sorry" Asian "Partner".
Perhaps you like to sell your business? We make you velly good offer?
The Qantas Sale Act will be no help because there is nothing left to sell.
That is what is going to happen to Qantas Alan. You have absolutely no experience whatsoever in operating in Asian markets and neither has Qantas apart from flying in, filling up and departing, yet you think that running an LCC operation in a bog in Ireland is suitable experience for operating to the shores of the Middle Kingdom?
Take the old Asian custom of "gifts" also know in vulgar terms as kickbacks. How are you going to deal with the necessity of those Alan? Australian law prohibits them, but I guess that the Qantas auditors and your own "robust internal processes" will keep you safe.
Well, except that they didn't, did they?
Qantas one of 11 airlines fined $1.1 billion for rigging cargo prices | The Australian
Quote:
The fine comes three years after Qantas was fined $40 million for price-fixing in the North American air cargo market.
In 2008, Qantas also agreed to pay a fine of $20 million under a deal reached with the Australian Competition and Consumer Commission over the European price-fixing cartel.
Never mind Alan, the Board knows how to deal with the thorny problem of Asian business customs. They will keep you safe. Leigh Clifford comes from Rio Tinto. They know all about Chinese corruption don't they?
Rio Tinto mops up after China bribery mess | The Australian.
So how are you going to do the "exploiting" Alan? Tell us about the mass of trained Qantas managers who know instinctively what to do when there appear to be employees on the payroll that have never been seen; when invoices appear that cannot be reconciled. What happens when you discover that the security guards on your stores and property exist to prevent you from accessing them after hours when the real business is being conducted? Do you understand that you had better give your Chinese managers about Ten percent of the shareholding lest they be enticed away to your loss? Have you ever had to write on a Six million dollar invoice "Please do not ask for credit as refusal often offends", Alan? Alan? Tell us about your vast experience of the orient! Do you like Chinese food? Is that it?
Somebody should tell this bog Irish idiot that he is not doing business with another Belgium or Holland. He knows nothing about the East - where business is played by rather different rules. Just ask Cathay and Swire, they have only been in the game for what? Two hundred years? ..And you are going to encroach on their territory?
It is perfectly clear who is going to do the "exploiting" in this transaction, and it won't be Qantas. You come to this market with zero expertise, and you are too stupid to understand that you have no understanding of what is required.
....and finally. The Board and management of Qantas keep harping about generating an "acceptable" return on Capital invested in the international business.......
Asia is the home of the concept of "Patient Capital"; exactly how does the long term Asian time horizon sit with your need to generate "Acceptable Returns" every year?
I can tell you right now that it doesn't. Wait till your business partner says: "Yes Alan, I know we are making a loss now, but in Ten years time!"