Everyone talks about the Asian strategy and they say ‘look, why don’t you do a JV with someone in China or Malaysia or the Philippines’ and my reply is always ‘why?’ Why would we do that? What is it that that would do for our core business?
The obvious question is, well hang on - what is your core business? Our core business is domestic travel in Australia, so tell me how doing a JV in some part of Asia will actually help that core business and to date I haven’t seen an answer that would attract me to that.
One has to be careful in not taking your eye of the strategy you have - you have to be consistent to your strategy, and not taking off your core reason to being, and that to me would be a distraction and I don’t see the value in it so you won’t see us doing that in the foreseeable future.
People always say ‘well China is a great market, why don’t you fly there directly?' and you say ‘yep, great idea but again tell me why we would do that?’ we have a terrific, probably the best partner you could have in terms of Asian network, with Singapore Airlines - why would we do something different? We can feed that China traffic over Singapore with Singapore Airlines and thats as good as it gets.
Why is everyone focused on China? America is still by far the biggest market and I think whats happened in the last year or two or three is people have forgotten about the importance of the US for inbound travel to Australia and everyone is looking towards Asia and thats terrific because its a very big market and its growing… But lets not forget that the bread and butter of inbound travel really comes from America and New Zealand to a certain extent, and thats one reason why were present in both markets. I think the Asia strategy we have makes sense, its cost effective, it provides benefits for the domestic market we have and there’s no better partner than Singapore Airlines.