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 August 17 Edition Click here to open

Rod Oram goes under the covers of Fletcher Building's results for Newsroom and finds the source of its financial problems with project cost blowouts: corporate governance.

The table below from Fletcher Building’s results presentation on Wednesday clearly shows the company’s incompetent corporate governance.

Five years into the biggest, longest construction boom this country has ever seen our largest construction company has lost almost $300m on its $2.65bn order book for commercial buildings.

Two big projects – the Justice Precinct in Christchurch and the Sky City convention centre in Auckland totalling $737m of work -- account for the bulk of the losses.

This, though, is not a simple story of two bad projects.

Fletcher has written down the value of the rest of the order book of Building + Interiors, the commercial building business in its construction division. Breakeven is the best it hopes for on this $1.49bn of business, it announced at its results briefing.

Nor is this bad news a bolt out of the blue. B+I eked out EBIT of only $16m a year over the 12 years to fiscal 2016. Add in the infrastructure business, the other main part of the construction division, and Fletcher’s EBIT on all construction averaged only $32m a year over the 12 years.

That insight is on slide 30 of Fletcher’s results’ presentation to analysts. Anyone wondering how Fletcher could achieve only a 6.76% total return to shareholders over the past six years of booming construction and stock markets will find the 1hour 24 minutes’ briefing revealing.

Continue to read the full article here

| A Newsroom release by Rod Oram  ||  August 20,  2017   |||

Dunedin will get a new $1 billion plus hospital, in what will be the largest build of its type in New Zealand’s history, Health Minister Jonathan Coleman says.

Dr Coleman made the announcement with Prime Minister Bill English at Dunedin Hospital today.

“The Government is committed to ensuring the people of Dunedin and the wider Southern community receive quality hospital care,” Dr Coleman says.

“We have been assessing the options around refurbishing the existing site and building a new hospital. The decision has been made to rebuild.

“This would maximise the opportunity of having a purpose-built, state-of-the-art facility, while also minimising disruption to patients and staff.

“Given the scale of the project it is estimated to cost between $1.2 billion - $1.4 billion, making it the largest hospital rebuild in New Zealand history.

“The original plan was to simply rebuild the services block, but the indicative business case has determined that the ward block also needs replacing and that has increased the cost significantly from the original $300 million estimate.

“The Ministry of Health is working to secure an appropriate site for the new hospital, with a strong preference for a central city location. Depending on the location the new hospital will be opened in 7 – 10 years.

“Given the size of the project the Government will consider all funding options including a Private Public Partnership model.

“We are also taking steps to support the existing Dunedin Hospital while the rebuild takes place with an extra $4.7 million being invested into the Interim Works programme, taking the fund to $27.2 million.

“The programme includes the expansion of ICU to 22 bed spaces over the next 12 months. Taking the unit to eight ICU beds, 10 High Dependency beds and 4 beds which are flexible to be either as demand requires.

“Increasing the number of co-located beds in ICU will greatly improve efficiency and enable more effective care of patients.

“The programme also includes the expansion of the Gastroenterology Unit, which will support the roll-out of the National Bowel Screening Programme to the DHB.

“This is a once in a generation opportunity to build modern and sustainable health facilities that will meet the future needs of Dunedin and the wider Southern community.”

The new Dunedin Hospital will follow on from the completion of the new $77.8 million Grey Base Hospital on the West Coast, as well as the almost $1 billion hospital redevelopment programme in Canterbury.

The Indicative Business Case for Dunedin Hospital can be accessed here.

| A Beehive release  ||  August 19,  2017   |||

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Virgin Australia has claimed that it will be the first Australian airline to offer Wi-Fi on international flights. The airline, which has invested in installing Gogo’s 2Ku service, also announced that it will offer a base-level free Wi-Fi service to all of its passengers on domestic flights.

Once the rollout is complete, more than 90% of Virgin Australia’s fleet will be fitted with the 2Ku solution on both domestic and international aircraft. Passengers will be able to check emails and social media, send text messages, catch up on the day’s news, or stream movies and TV shows.

The airline is now rolling out connectivity on its Boeing 737 aircraft, with Boeing 777 aircraft to commence in October. By the end of 2018, Virgin Australia expects to have inflight Wi-Fi on all Boeing 777 aircraft and the majority of Boeing 737 aircraft, with the Airbus A330 aircraft due for completion by the second half of 2019.

Virgin Australia becomes the second carrier to confirm that it will offer 2Ku-powered Wi-Fi access for free on domestic flights, following in the footsteps of Japan Airlines.

Fellow Australian carrier Qantas is currently trialling free Wi-Fi on some domestic flights, having signed a deal with ViaSat for in-flight connectivity.

| An FTE release  ||  August 19,  2017   |||

Jaclyn Sienna India, president and founder of the decade-old travel consultancy Sienna Charles talks to Industry Week about their role in the world of business travel for the elite.

Private jets for execs and their families are almost always reimbursable corporate expenses. Why? Transportation is considered a matter of security, and most CEOs plan travel in tandem with work trips, taking their family with them to Dubai for a few days before jetting off to the Maldives.

In the era of the humble brag, it’s harder than ever to know how your boss travels. Assuming he or she is the type that likes to share, you might see a suggestion of a private jet or a swanky beach resort on Instagram—or hear one unassuming story about the sea turtles that swam under the paddleboard in St. Barthelemy.

Unfortunately for your water cooler conversations, no chief executive officer is ever going to spill the beans on his favorite private island, the extent of his security detail, or the lengths his assistant went to procure Coke Zero in Madagascar.

For that, we turned to Jaclyn Sienna India, president and founder of the decade-old travel consultancy Sienna Charles. Almost immediately after hanging a shingle on West Palm Beach’s ritzy Worth Avenue in 2008, India got her lucky break: An unexpectedly productive, $25 ad with the Explorer’s Club turned out her first billionaire client, and word of mouth turned one into many.

Now India is a go-to for the finance world’s jet set, regularly organizing trips for at least two dozen CEOs, along with other titans of industry and a handful of former U.S. presidents. Her clients range from Morgan Stanley higher ups and former top-level executives at American Express, to billionaires and real estate tycoons.

Of the hundreds of trips she plans each year, 90% are for high-ranking finance types—some with budgets that climb into the millions. Chatting about restaurants, she says, is the best way to let these power brokers know she’s playing on their level.

“People can be all over the map,” she said, explaining that often clients are looking for a vibe or set of experiences rather than an exact destination. To help them wade through their options, she prefers face-to-face lunch meetings (typically at such power spots as Le Bernardin) over cursory phone calls. “A lot of agents can B.S. over the phone or have notes all prepared, but I could never do that. That’s not how you build up trust with the world’s wealthiest people,” she told Bloomberg.

Here’s what she had to say about her C-suite customers—the good, the bad, and the hyper-demanding.

A Private Jet Is a Business Expense

Private jets for execs and their families are almost always reimbursable corporate expenses. Why? Transportation is considered a matter of security, and most CEOs plan travel in tandem with work trips, taking their family with them to Dubai for a few days before jetting off to the Maldives.

“Safety” is a card more legitimately played by former presidents, says India, who has organized trips to Africa for George W. Bush and his 30 secret service agents. But CEOS are productive on planes—she joked that “if you can be offline for 10 hours, then you aren’t really that important.” (In the era of laptop bans, private planes are a good way to ensure that work gets done.)

Privacy also important. “CEOs like to stay under the radar and want to focus on their family rather than who they are,” India said. Speaking of family time: They often travel with their pets, “just because they can.”

Little else gets expensed. “CEOs can splurge big time on hotels, yachts, and experiences when they’re saving a minimum of $75,000 to transport a family of four,” India observed, noting the rough cost of a private jet.

It Takes a Village

For every VIP itinerary, there are “layers of experts” coordinating the logistics, says India. “They have us, an air department [or a team dedicated to booking air travel], and an executive assistant working in unison to make sure everything is exactly they way they like to travel every step of the way.” But having too many cooks in the kitchen isn’t something she worries about. A CEO’s personal assistants prove extra-valuable: One client drinks only O’Douls and has frequent hankerings for crunchy peanut butter; others might like their entire minibar stocked with a particular beverage (think: Coke Zero).

Preferences for air travel can be among the most important to consider. India says some of her regulars might want a particular make and model for their airport transfer (for vanity), some want to be picked up right next to the aircraft (for speed), and others are particular about having two pilots even on a tiny helicopter (for paranoia).

But not every minute is planned. India says her CEOs “like a mix of organized activities and room for spontaneity” on their itineraries, so they have a structured schedule and time to relax.

Loyalty Isn’t Everything

Don’t brag to your boss about your Platinum Elite Marriott Rewards status: Chances are they won’t be impressed. “They don’t care about rewards that offer them amenities or free breakfasts or upgrades—they’d rather book the room they want from the beginning,” explained India.

So does that mean they don’t care about frequent flier miles, either? Sort of. These programs are less valuable for those who tend to fly private, but when the unavoidable commercial flights rolls along, executives “do care about being recognized.” (Privacy, it seems, is less of a concern if it’s what secures a first-class upgrade.)

Bigger Isn’t Better

“Since the way they live normally at home is quite lavish, they love top accommodations,” said India of her guests. The five key things they’re looking for are good light, outdoor space, seamless technology, high-end furniture, and a super-comfortable bed. Specific views (such as the Eiffel Tower or Spanish Steps) might help, too. Square footage is less important: “A good suite is not just about big for the sake of being big,” India explained.

These criteria have shaped India’s shortlist of the best hotels in the world. “In Rome, for example, everyone assumes they should be staying at the Hassler, but I don’t love it personally. It’s great for lunch, but the rooms are highly overpriced.” Instead she books guests into the just-renovated Hotel Eden, where she’s partial to the Aurora Terrace Suite. In Paris, she turns to the penthouses at the Bristol and Plaza Athénée.

As for the rooms and resorts on CEO bucket lists? They include the Brando, a private island resort in Tahiti that was once owned by Marlon Brando; the Four Seasons Bora Bora, whose three-bedroom overwater bungalows are among the best in Polynesia; the AII Royal Suite at the Four Seasons in Lanai, Hawaii; and the private villas at Castiglion Del Bosco, a Tuscan village-turned-Rosewood resort by the fashion mogul Massimo Ferragamo.

From One VIP to Another

India scrutinizes every aspect of an itinerary, from airline routings to the personalities of tour guides. But ultimately she’s not the one executing the services she books. That’s why she assembles a one-sheet of critical details—such things as dietary preferences (allergies, restrictions), an affinity for San Pellegrino over Perrier, a hatred for Jack Daniels, or an addiction to spin classes—and sends them straight to the hotel’s general manager, not the front desk or guest relations team.

“No matter how much hotels say they care about every guest, they tend to lose this type of information,” she explained. This way, she is getting high-powered requests into equally high-powered hands, ensuring that detailed requests such as in-room yoga mats and blenders (for protein shakes) don’t go overlooked. Of her clients’ hyper-specific demands, India says: “I don’t have time for the crap either, so I totally get it.”

Another strategy: booking yachts, villas, and residences instead of traditional hotels. In these cases, she can control the staff-to-guest ratio herself, guarantee privacy, and custom-pick chefs or butlers whom she knows will strike the right chord.

A Predominantly Grateful Crowd

Here’s a shocker: CEOs can be difficult. One hedge fund owner recently sent India a barrage of round-the-clock texts and emails complaining that the weather was too hot in Italy, despite the fact that his family’s activities were all scheduled in the early morning hours. What’s more, India said the 12-year-old kids were as difficult as the parents, with over-the-top criticisms of a luxury spa experience.

This isn’t common, though. India said that by and large, she works with “really nice people who generally appreciate everything.” What is common? Receiving flowers and thank you notes—or even photo books filled with vacation snaps—from happy clients. “It’s thoughtful stuff, not a Ferrari outside my apartment,” she quipped.

Her most appreciative clients prefer a more personal route, opening their homes and inviting India for dinners. “That’s the best thing,” she said. “I never feel looked down upon; I’m being treated as an expert and part of the family instead, and that’s really special. And the next trip we plan for them is even better as a result of getting to know each other.”

| Written by Nikki Ekstein for IndustryWeek  ||  August 17,  2017   |||

Cruising, Pacific Island stays, Sports Tours & more! It's Travel O'Clock 18-8-17 / a snippet of Mondo Travel Deals -

following this link for more details

|  Mondo Travel & The MSCTravel Desk  ||  August 18,  20i7   |||