Forum Archive Index - May 2002

[B Bourke <bbourke@world-net.co.nz>]

Matthew
The following may not be in the text books, but they have always proven true.

There are some basic rules of business that the Air NZ board (and all their 
senior management)forgot. They are:

1. (When you are in trouble) your first loss is your smallest. ie: dont put 
more money after the first mistake
2. Never - but never - overlook the the basics of the business you are buying 
(ie:with airlines dont forget to check out
the maintence records or route costings, or if its a hotel checking to see if 
people actually stay in the place).
3. And if you can't get those records - then run away as fast as you can 


(history will show that the first 50% purchse of ansett was the smallest loss 
in the whole sorry episode, and
the lack of application of basic business rules explains the rest of the horror 
story.
OH - one more thing - the lack of director liability allowed them to carry on 
the way they did) 

BBourke



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