Global Business Forum, BA 545

Joel,

Thanks you for coming in and speaking to the class. I found your prsentation to be very informative.

If you’re checking this blog, I have a question for you.

It’s a follow up to your comment about increasing numbers of Chinese tourists coming to the U.S. With Seattle being Hainan’s only current U.S. destination, has the company been successful in setting up codeshares or partnerships with U.S. carriers to get passengers to places like Las Vegas and Aspen? Are customers able to buy tickets to final U.S. destinations directly through Hainan, or do they need to make second transaction with a U.S. carrier?

Thank you.

hello, Joel

Thanks for your fascinating speech. As Hainan Airline has opened a direct fight from Seattle to Beijing, is there a futher expansion for more direct flights from China major cities( etc.Shanghai, Chengdu) to seattle? Any particular challenges for the further expansion as oil fuel goes up dramatically?

Joel,

Thank you so much again for taking the time to speak to our class.

I have a follow up question for you. You mentioned the problem with bad translation services in China that often make business less efficient, slowing down transactions or causing confusion. Do you see the Chinese government or the Chinese business community acknowledging this problem? Do you see this being improved in the near future?

Thank You!

Philip, airlines have “interline” relationships in addition to the more intensive codeshare and alliances arrangements. Hainan has interline agreements with many carriers, including Alaska, American, Continental so we can issue a single ticket for the through travel from China to Denver, for example. The ski interest from China is quite extraordinary. If the group does materialize, we’ll give it some publicity as it may be a first. Thanks for your kind comments.

Hi Yue, flights between China and the US are regulated by a bilateral agreement between the two countries. New gateways in the US have opened up in recent years, but not so in China (Shanghai, Beijing, Guangzhou are the only ones, although China Eastern briefly served Harbin.) The three cities have US consulates; I don’t think there are any others, and this influences where travel demand comes from. Fuel prices, for now, are on the decline, which is good. I think that if the demand rose between China and the US dramatically, you’d see places like Shenzhen and even Chengdu possibly added, and service between Shanghai and Seattle would be a possibility, but the current global economic slowdown is inhibiting that for now.

Michelle, the Olympics really encouraged the Chinese government to try and stamp out Chinglish, but alas, it was only partly successful. I suspect that good translation companies are still hard to find. Anyone who learns a few words of English thinks they can translate, but that’s the same as the automated translation programs – awful. So it’s a niche that has opportunity for people who can do it well. My most recent experience with Hainan’s frequent flyer group shows that they want to produce materials in proper English. I do get to see the copy, and it requires less editing than before. It amazes me to see how much Chinglish still exists. For a laugh, go to http://www.engrish.com.

Hi Joel,

First I’d like to say thank you for taking the time to speak to us. You mentioned before about the cultural issues you’ve faced while doing business in China. Situations you’ve mentioned were the general management style in China.

My question focuses on the hiring practices at Hainam Airlines or other corporations you’ve worked for in China (or hiring trends in China in general). When evaluating candidates, do Chinese businesses usually place more value on people with international education (US degrees) than they would with a local with a local tertiary education? In China, is an MBA from the States seen as more valuable as an MBA from the top school in China? I ask this because this is the general practice and trend seen in the emerging countries that I’ve lived in.

Again, thanks so much for your time.

- Tri Tran

Hi Tri – from what I’ve seen, the international MBA is more highly prized than a local one in China. Hainan hires a number of new graduates each year, but I can’t say if most or some have an overseas degree. Several of the middle management executives appear to have earned degrees abroad. A command of English is also quite important. Joel