The boss of Virgin Australia, John Borghetti, was a happy chief executive at yesterday's annual gathering in Singapore of airline bosses from around the world.
Borghetti and his "good friend" from Singapore Airlines, Goh Choon Phong, had just announced an alliance that will cause endless headaches at Qantas.
But the keen car racer and Porsche owner also had other reasons to smile. Asked whether the alliance could help snare even more corporate customers from Qantas, Borghetti said: "We are happy with 20 per cent of the corporate share. Could it lead to more? Well, gee, I hope so - my bonus will look good if it does." Realising what he had just said, he quickly added: "Don't write that."
The former senior Qantas executive was also asked whether he had any advice for Qantas's boss, Alan Joyce. "I am sure that his board gives him advice. I don't need to do that," he said with a straight face. "It's the role of boards - so don't read anything into that."
NO MO FOR SIR ROD
This column has long had a fascination with powerful business identities who indulge in facial hair.
So you can imagine CBD's shock when Sir Rod Eddington was spotted yesterday minus his trademark soup-strainer.
"I shaved it off for Movember," he explained to surprised reporters yesterday after speaking at an Australian British Chamber of Commerce lunch in Melbourne.
The admission shows he has either kept a very low profile for the past six months or has successfully passed among us incognito without his mo.
"I was rather hoping I could grow it back but my wife had other ideas," said the not-so-brave knight.
Sir Rod's fresh-faced appearance put him in the mood for reminiscing about his younger days with "she-who-must-be-obeyed", Young Sook Park.
"When I went to Hong Kong in the late 1970s, I was a bachelor and everything I owned fitted in two small steel trunks - one of them had sports gear in them and the other my meagre clothes," he said.
"I left after 18 years with a wife, two kids, and everything I owned wouldn't fit in a 40-foot container."
Back to more contemporary matters, Sir Rod said he was dared to shave off his moustache for "a significant donation to charity".
So significant was the donation, apparently, that Sir Rod says he will "grow it back for Movember this year and take it off again".
Pity he couldn't pull this trick off while on the board of the corporate fiasco Allco Finance.
CHANGE OF MIND
Support appears to be running low for Shawn "Shawny Cash" Richard, the Trio Capital stooge awaiting sentencing on charges related to his role at the fraudulent hedge fund manager. No trace has been found of the $125 million that went missing from Australian superannuation accounts.
So it was no surprise yesterday when the head of the Association of Independently Owned Financial Planners, Peter Johnston, told InvestorDaily it was a comfort that Trio and Astarra Asset Management were deemed "a blatant fraud".
"The advisers are tired of being blamed for product failure. These products should not have been
in the market in the first place," Johnston said.
But it was not always thus, says the Bronte Capital blogger John Hempton, who was instrumental in uncovering the fraud.
Hempton recalls that most of the Astarra victims were clients of AIOFP members.
"Astarra and its principals were regular attendees at AIOFP conferences and AIOFP members received kickbacks from Astarra - some disclosed, some not disclosed," Hempton blogged.
"It is funny how Peter conveniently forgets that he vouched for Shawn Richard. He did so repeatedly (although not publicly since Shawn admitted guilt)."
Hempton reported previously how Johnston agreed to a $100,000 bet with him on the innocence of Shawny Cash and whether the money would be found where Johnston thought it was. Alas, Hempton never saw the cash as Johnston later backed out.
BANK BOOSTER
Steven Munchenberg, the head of the banking industry mouthpiece, the Australian Bankers Association, came clean to a business audience in Sydney yesterday on just how much flack our big four are taking to protect ordinary Australians from the Reserve Bank.
He made the point that "you are paying just what the Reserve Bank wants you to pay, to fight inflation" and if the banks cut their rates by 1 per cent tomorrow the Reserve Bank would presumably be "horrified" and would be likely to raise the cash rate "dramatically" to the level needed to fight inflation.
Who knew the Reserve Bank has been holding our big four to ransom like this and let them cop the blame for raising rates well above the Reserve Bank increases?
Not only is it useless for the banks to cut their rates in the face of such intimidation from the Reserve Bank, even competition is useless, Munchenberg argues, since any significant cut in mortgage rates from competition will only lead the Reserve Bank to drive rates back up once again.
This argument fitted in with his other theme, which was how the growing frenzy around bank regulation was making a mountain out of a molehill. "Whether it is price signalling, credit card debt or interest rate rises, the problems do not seem to be anywhere near as big as they are presented," Munchenberg told those attending the Banking Regulations Forum.
He even resorted to verse to make his point.
"After a bit, you feel that some of these problems are like the man in the children's rhyme:
Yesterday upon the stair
I met a man who wasn't there
He wasn't there again today
Oh, how I wish he'd go away."
IN MEMORIAM
On a more respectful note, one of the property industry's stalwarts, Peter Hartigan, has passed away at 60. He was a long-time friend and colleague of Andrew Parsons and the team at Resolution Capital. He had worked for Resolution Capital and its predecessor company for more than 15 years. Before that he worked in project management roles at Lend Lease in Sydney and Singapore from 1976 to 1994.
Andrew Parsons at Resolution Capital said Peter "made an amazing contribution to the firm and lived his life with great dignity through adversity".
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Frequently Asked Questions about this Article…
What was announced between Virgin Australia and Singapore Airlines and why does it matter for investors?
The article says Virgin Australia and Singapore Airlines announced an alliance — a partnership their chiefs, John Borghetti and Goh Choon Phong, described at an airline conference. For investors, such alliances can reshape competitive dynamics, especially on corporate and international routes, which may affect market share, yields and the strategic outlook for carriers involved.
Could the Virgin Australia–Singapore Airlines alliance win corporate customers from Qantas?
According to the article, John Borghetti said Virgin Australia is happy with a 20% corporate share and suggested the alliance could help win more corporate customers from Qantas. He even joked that increased corporate wins would make his bonus 'look good.' This signals management is focused on growing corporate market share, which investors often watch as a sign of revenue quality.
Did John Borghetti offer advice to Qantas or its CEO, and what does that mean for airline competition?
Borghetti was asked if he had advice for Qantas chief Alan Joyce and replied that he trusted company boards to give advice, saying he didn't need to provide it. The comment reflects a competitive tone but stops short of direct criticism — a reminder that executives publicly manage rivalry while leaving strategy to boards and management teams.
What did the article say about the Trio Capital and Astarra Asset Management fraud and the missing $125 million?
The article reports that Shawn 'Shawny Cash' Richard, linked to Trio Capital, is awaiting sentencing in relation to the fraudulent hedge fund manager and that $125 million went missing from Australian superannuation accounts. It also notes debate in the industry: the head of the Association of Independently Owned Financial Planners called it 'a comfort' that the funds were deemed 'a blatant fraud,' while blogger John Hempton said many victims were clients of AIOFP members and alleged undisclosed kickbacks.
What lessons for everyday investors were highlighted by the Trio/Astarra fallout?
The article highlights concerns about product due diligence and conflicts of interest: advisers are reportedly 'tired of being blamed for product failure,' and critics say products like Astarra should not have been in the market. For investors, this underscores the importance of understanding how complex funds are vetted, checking adviser disclosures, and being alert to potential conflicts or unusual fee arrangements.
How did the article describe the relationship between banks, the Reserve Bank and mortgage rates?
Steven Munchenberg of the Australian Bankers Association said the big four banks have been constrained by the Reserve Bank — arguing that if banks cut rates substantially, the Reserve Bank would likely raise the cash rate to fight inflation. He suggested competition among banks may be ineffective when the central bank adjusts policy, a point investors in bank stocks or mortgage-dependent sectors might consider.
Who was Peter Hartigan and why was his passing mentioned in the article?
Peter Hartigan was described as a property‑industry stalwart who worked more than 15 years with Resolution Capital (and its predecessor) and earlier held project management roles at Lend Lease in Sydney and Singapore. The article notes his death at 60 and quotes a colleague praising his contribution — relevant to investors who follow property-sector leadership and institutional experience in real estate management.
Why was Sir Rod Eddington in the news and what anecdote about him was shared?
The article notes Sir Rod Eddington surprised people by shaving off his trademark moustache for Movember, saying he did it for a 'significant donation to charity' and plans to grow it back. He also reminisced about his early career overseas. The anecdote humanises a corporate figure and shows leaders sometimes engage in public charity and personal storytelling.
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