Brisk Trade In Private Jet Hire And Good Wine
source: http://www.theaustralian.com.au/business/brisk-trade-in-private-jet-hire-and-good-wine/story...
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- toyotabedzrock
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DESPITE the age of corporate austerity, current annual reports reveals a brisk trade in private jet hire, wine and consultancy services.
The reports show the lure of the Learjet is as strong as ever, despite companies such as BHP Billiton and Foster's long ago disposing of their own aircraft because of reputational concerns (although ownership may make perfect economic sense for such far-flung companies).
But there's corporate stewardship and individual ownership, with moguls such as Seven's Kerry Stokes, Toll Holdings' Paul Little, Transpacific's Terry Peabody, Goodman Group's Greg Goodman and Premier Investments' Solomon Lew remaining proud owners of their private airborne retreats.
In the annual reports, the mandatory related-party disclosures pick up only the cases in which use of the aircraft is charged back to the company. Still, it's a rough guide to the level of activity.
Paul Little Aviation billed $108,040 to the Paul Little-led Toll Holdings. Over at Asciano, chief executive Mark Rowsthorn's Marcplan Charter charged Asciano $268,000 for jet hire -- at a generous 10 per cent discount.
Waste manager Transpacific paid $356,744 to Peabody's entity Brenzil "to fly group executives in connection with the acquisition of businesses, business negotiations and investor relations".
At Seven, the media operator turned earthmover purveyor incurred $756,000 in related-party aviation costs -- but not from getting a lift in Mr Stokes' Gulf Stream. According to a Seven spokesman, all but 0.5 per cent of the cost relates to total planes for Westrac, which is treated as a related party for the purpose of the accounts.
US-centric shopping mall owner Westfield is unapologetic about owning two aircraft -- a wise investment given the ordeal of an everyday US customs frisking. In quiet moments, one of the craft was hired by director Peter Lowy, on an arm's-length basis, for a total of $163,868.
As well as displaying a John Travolta-esque enthusiasm for private aviation, the top echelons continue to be seduced by the romance of winemaking, despite the sector's dismal economics.
Perhaps this is why Toolangi Vineyard in Victoria's Yarra Valley -- owned by Qantas director Gary Hounsell -- was more than happy to supply its finest pinot noir and chardonnay to Qantas's business-class quaffers.
Or why the Mornington Peninsula's Yabby Lake, Village Roadshow director Robert Kirby's family winery, supplied $364,868 of plonk for thirsty patrons of Village's Gold Class and Europa cinemas.
The Village report also bares all about Garyson Nominees, a swimwear concern linked to chief executive Graham Burke. During the year Garyson sold $56,710 of cozzies on a bikini-length basis to Village, for resale by its theme parks (presumably Wet n' Wild). In a cultural vein, a Robert Kirby company relieved Village of $16,722 of artwork, all valued on an arm's-length method.
The web of Packer-linked companies were happy to help each other out with an array of services -- all at an appropriate charge of course.
Consolidated Media Holdings charged $500,000 of rent to its major holder, James Packer's private Consolidated Press Holdings, while CPH charged $400,000 for car parking and consulting services.
Casino operator Crown -- 40 per cent CPH owned -- charged CPH $32,000 for "banqueting services". But then Crown incurred a $200,000 fee from CPH for administrative services.
The disclosures also reveal that companies are more than willing to tap their directors' well of knowledge -- for a suitable fee of course. Leighton Holdings director Dieter Adamsas's Frenjune provided $2.289 million in "strategic consultancy services" to the contractor as the construction contractor nutted out the path forward without veteran chief executive Wal King.
Notably the sum was considerably less than the previous year's $3.56m, so maybe the way forward isn't so vexed after all.
While it's tempting to presume that related-party deals are all about jet setting, wine quaffing and lucrative consultancies, spare a thought for eight Boral employees and their families dispatched to Outward Bound outdoor courses on the company's dime. Boral had to disclose the family bonding scholarships as Outward Bound is chaired by former Boral chief Rod Pearse.
DESPITE the age of corporate austerity, current annual reports reveals a brisk trade in private jet hire, wine and consultancy services.
The reports show the lure of the Learjet is as strong as ever, despite companies such as BHP Billiton and Foster's long ago disposing of their own aircraft because of reputational concerns (although ownership may make perfect economic sense for such far-flung companies).
But there's corporate stewardship and individual ownership, with moguls such as Seven's Kerry Stokes, Toll Holdings' Paul Little, Transpacific's Terry Peabody, Goodman Group's Greg Goodman and Premier Investments' Solomon Lew remaining proud owners of their private airborne retreats.
In the annual reports, the mandatory related-party disclosures pick up only the cases in which use of the aircraft is charged back to the company. Still, it's a rough guide to the level of activity.
Paul Little Aviation billed $108,040 to the Paul Little-led Toll Holdings. Over at Asciano, chief executive Mark Rowsthorn's Marcplan Charter charged Asciano $268,000 for jet hire -- at a generous 10 per cent discount.
Waste manager Transpacific paid $356,744 to Peabody's entity Brenzil "to fly group executives in connection with the acquisition of businesses, business negotiations and investor relations".
At Seven, the media operator turned earthmover purveyor incurred $756,000 in related-party aviation costs -- but not from getting a lift in Mr Stokes' Gulf Stream. According to a Seven spokesman, all but 0.5 per cent of the cost relates to total planes for Westrac, which is treated as a related party for the purpose of the accounts.
US-centric shopping mall owner Westfield is unapologetic about owning two aircraft -- a wise investment given the ordeal of an everyday US customs frisking. In quiet moments, one of the craft was hired by director Peter Lowy, on an arm's-length basis, for a total of $163,868.
As well as displaying a John Travolta-esque enthusiasm for private aviation, the top echelons continue to be seduced by the romance of winemaking, despite the sector's dismal economics.
Perhaps this is why Toolangi Vineyard in Victoria's Yarra Valley -- owned by Qantas director Gary Hounsell -- was more than happy to supply its finest pinot noir and chardonnay to Qantas's business-class quaffers.
Or why the Mornington Peninsula's Yabby Lake, Village Roadshow director Robert Kirby's family winery, supplied $364,868 of plonk for thirsty patrons of Village's Gold Class and Europa cinemas.
The Village report also bares all about Garyson Nominees, a swimwear concern linked to chief executive Graham Burke. During the year Garyson sold $56,710 of cozzies on a bikini-length basis to Village, for resale by its theme parks (presumably Wet n' Wild). In a cultural vein, a Robert Kirby company relieved Village of $16,722 of artwork, all valued on an arm's-length method.
The web of Packer-linked companies were happy to help each other out with an array of services -- all at an appropriate charge of course.
Consolidated Media Holdings charged $500,000 of rent to its major holder, James Packer's private Consolidated Press Holdings, while CPH charged $400,000 for car parking and consulting services.
Casino operator Crown -- 40 per cent CPH owned -- charged CPH $32,000 for "banqueting services". But then Crown incurred a $200,000 fee from CPH for administrative services.
The disclosures also reveal that companies are more than willing to tap their directors' well of knowledge -- for a suitable fee of course. Leighton Holdings director Dieter Adamsas's Frenjune provided $2.289 million in "strategic consultancy services" to the contractor as the construction contractor nutted out the path forward without veteran chief executive Wal King.
Notably the sum was considerably less than the previous year's $3.56m, so maybe the way forward isn't so vexed after all.
While it's tempting to presume that related-party deals are all about jet setting, wine quaffing and lucrative consultancies, spare a thought for eight Boral employees and their families dispatched to Outward Bound outdoor courses on the company's dime. Boral had to disclose the family bonding scholarships as Outward Bound is chaired by former Boral chief Rod Pearse.
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toyotabedzrock
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They don't seem to be suffering much do they.
How many people die from hunger for the fuel they use?
Maybe they should be a counter in the plane so they can watch the body count rise as they travel?
- 1 year ago
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toyotabedzrock
