Australia’s Bankstown Airport Corporation Development Company (BAC Devco) reportedly announced the appointment of KordaMentha as receiver and administrator to the company with USD50.8 million owing to the Commonwealth Bank of Australia (The Australian, 03-Jun-2010). BAC Devco is a joint venture of Mirvac, Leighton Holdings and Westscheme superannuation fund, established seven years ago. The three companies own equal shares in BAC Devco, a company that initially owned up to 104ha of land surrounding Bankstown Airport. The actual Bankstown Airport is not in receivership. The airport is separately owned by another consortium that includes James Fielding, controlled by Mirvac, and a fund managed by Colonial First State and Westscheme.
Receiver and administrator appointed for Bankstown Airport development
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Why so unprepared? It seems inconceivable that the structure of an industry with so many artificial constraints can remain intact much past 70 years, while all around it has changed.
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In all cases disrespectful startups, usually applying relatively simple but sophisticated IT solutions, have taken on legacy operations. The legacy industries under attack typically involve extensive capital investment, and are often characterised by significant, unhelpful, and highly intrusive government regulation that restricts competition.
Certainly the legacy airlines have had to deal with a new breed of low cost operations, long and short haul. But almost without exception those legacy operators are still there, fundamentally unchanged.
In terms of other industries, this is no more than fiddling around the margins. And time is running out.
Lion Air Group begins international expansion from Indonesia with Batik Air Australia & India routes
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International expansion is becoming strategically necessary for Lion as Indonesia’s international market is now growing faster than the much larger domestic market. AirAsia and Garuda have already been focusing more on international expansion, widening their lead over Lion in Indonesia’s international market.