Ansett Aviation Asia - Case Study
Richard Anderson, Former Chairman
From the Asialink Business Taiwan Starter Pack
“Taiwan is small enough to be digestible yet large enough for a market of potential to exist.”
With Ansett Aviation Asia’s official opening in Taoyuan in July of 2016, Ansett Aviation Training, the southern hemisphere’s largest aviation training centre located in Melbourne, successfully launched its first international operation. From selecting a site to opening the centre for training, the entire process only took 241 days. Richard Anderson, the Chairman at Ansett Aviation Training was impressed by how quickly this all happened “It was incredibly fast . . . I would say, general speaking, Taiwan is a business friendly place to start up.”
Ansett Aviation Asia was established as a joint venture between Ansett Aviation Training and Apex Flight Academy, the first and only Taiwan Civil Aeronautics Administration certified flight training school in Taiwan. “We felt that they were a good and trusted partner for us to enter the market”, says Richard. He also recommends having a JV partner when entering Taiwan, especially if you are unable to find much information on doing business there as a foreign investor.
Ansett Aviation Training’s initial interest in Taiwan came from its strategic location and business environment. “Taiwan has vastly improved on the ease of doing business, particularly compared to other markets”, commented Richard. “Geographically, Taiwan is in a great location . . . there is the potential for a commercial hub in Taiwan”. This vision is shared by the Taoyuan City Council, which has the long-term goal of making the city an aviation hub in Asia.
While the arrival of Ansett Aviation Asia was welcomed by the Taiwanese government, this does not mean they did not face challenges when setting up there. Language and cultural differences, such as the concept of face, required patience and flexibility at times. Taiwanese businesses also tend be less legalistic than Australian ones, with contracts being less detailed.
Ansett Aviation Training found Austrade to be of great assistance when expanding into Taiwan. Austrade set up meetings with high level representatives from the Taiwanese government, contacts which helped Ansett Aviation Training get through the regulatory hurdles and processes in what is a highly regulated industry. To get more information on doing business in Taiwan, Richard recommends getting in touch with Australian businesses that have done it before. “Don’t be shy and try to reach out and find out who has been there before and what their experiences were”, he advises.
The increasing number of commercial flights in Asia has resulted in a growing demand for quality pilots training in recent years. With its 40 years of expertise and world-class training standard, Ansett Aviation Training looks set to grow in line with the region’s aviation industry. In order to achieve this Richard shares another important insight, “Even if your product is needed and it’s world-class, you got to be culturally malleable. The worst you can do is you think you are superior.”