Jetstar executives questioned in Vietnam over $34 million

[samh004]

They should just fly all the jets to Thailand and shut down ops in Vietnam, they wont like it, but if they want to play hardball

 

[ethernet]

Jetstar spent 50 million USD getting it up, and years of losses before it turned a dime profit. Jetstar creates a jet stir in Vietnam – Crikey says more.If true the brand name 'issue' is covered in a binding contract.In Vietnam, Jetstar had a very good reputation because of price, and whatever reason, 90% of travel agents pushed Jetstar.The second thing is in .vn a bribe is often called a 'fee'. After AWB, they can't afford to go there, and culturally, this streak of hard nosed honestly probably is a new concept = Mexican standoff. It is fully proper of the venture partner to expect the deal to be kept.From feedback, backpacker experiences in .vn were les than .vn's neighbours and Thailand. Given fat spending expat US tourists are giving .vn a berth, devaluation issues - its a bad idea to turn tourists away or off.

 

[medhead]

.The second thing is in .vn a bribe is often called a 'fee'. After AWB, they can't afford to go there, and

There was a pretty fundamental difference with AWB, they were paying money that broke UN sanctions. The whole world was trying to break Saddam and there was AWB making a complete joke out of Australian foreign policy, and this was of the government that gave them a nice little monopoly on the export of wheat. There is not worldwide ban on vietnam, jetstar doesn't have such an obvious government supported monopoly.

 

[samh004]

I wasn’t suggesting ditching all operations, I was suggesting leaving Vietnam for a better base where the government doesn’t try screw you out of the deal after you achieve profitability

Obviously, tongue-in-cheek though as I’d imagine such a move could be devastating for Qantas and relations between Australia and Vietnam, but you can’t let them get away with everything.

Interesting article on using Vietnam as a base for Europe flights, but seeing as they’re already competing with the flag carrier Vietnam Airlines as pointed out in the article, I doubt the Vietnamese government would be too happy about what that’d do to Vietnam Airlines.

Hence, withdraw from Vietnam. They might not get their money back and as the planes are ageing, how about just disabling them so Qantas has the last laugh. Vietnam is clearly the wrong place to do business.

As for the two executives, I’m sure there’s no solution to get them home, unless they change the brand back to something the government wants.

 

[ethernet]

Now that AirAsia bought 'in' - I wonder if they remember the 'strike' where the airport would not refuel planes. Nguyen Tan Dung had to intervene.
Now there is a political shuffle the wind may change again. Bottom line is the generals don't like competition, as part of .vn airlines contributes to their budget - well so claims crikey.

As for AWB - they got dobbed in - while the other gentlemen on much fatter facilitated contracts escaped. And UK was denied - on security excuses. There was a report the US Freetrade deal being a lemon for Australia - interesting reading.

Back to Jetstar. The 'Party' wants more domestic tourism other than SGN. Jetstar could offer to shift a flight to DAD, and give out some loss leaders to rural spots. The owner of VinaPearl would be the right person to consult.

 

[medhead]

As for AWB - they got dobbed in - while the other gentlemen on much fatter facilitated contracts escaped. And UK was denied - on security excuses. There was a report the US Freetrade deal being a lemon for Australia - interesting reading.

I'm having great difficulty understanding what your trying to say with your cryptic half sentences. But it seems that we agree that the AWB situation is a lot different from Jetstar. AWB bribed the wrong person, in a highly politically sensitive situation that had been going on for years and also undercut the politically powerful US farmers. If Jetstar were to bribe anyone there just isn't the same political sensitivities involved.

Also given that the veitnam government owns 70% of the jetstar operation I don't think they're going to be very concerned about it making money. They stand to get paid either way.