Dennise Williams, Staff Reporter
O.K Melhado. - RUDOLPH BROWN/CHIEF PHOTOGRAPHER
IN AN era of spiralling fuel costs, aggressive competition and budget-conscious travellers, Air Jamaica has the added burdens of a battered public image, heavy debts and the need for Government support.
And yet, there is a fresh sense of optimism by the senior management of the airline.
The determination is clear - Jamaica needs a national carrier. The way forward is clear - strengthen the balance sheet and attract international expertise.
Air Jamaica has already announced a new board of directors that will carry forward the reorganisation work of the previous board that was led by Dr. Vincent Lawrence.
To acquaint the public with the strategic vision of the company, O.K Melhado, the new chairman of the Air Jamaica board, gave an exclusive interview to the Financial Gleaner.
FG: Before we talk about Air Jamaica, tell us something about yourself. The name Melhado is well known, but you have been pretty quiet for the past few years. What have you been up to?
Melhado: In 1993, I left Desnoes & Geddes when we sold it to a major international firm. Then I got more involved in Manufacturers Merchant Bank until it merged with Pan Caribbean Merchant Bank.
I am on several boards including being the Vice Chairman of the Red Stripe board and Vice Chairman of the Cricket World Cup 2007 board.
And I have been on the Air Jamaica board since 1994 when Butch Stewart invited me.
FG: Then it was this intimacy with Air Jamaica that led you to accept this new post?
M: Yes. When the interim board, led by Dr. Lawrence, ended, the Minister of Finance, Dr. Omar Davies, asked me to become chairman of the Air Jamaica board. And I accepted because I have a passionate belief that Air Jamaica contributes to tourism and the economy in general and I have been a part of the brand over the last ten years.
However, right now Air Jamaica is at a cross roads; and so I told the Minster that I would only accept the post on one condition. A qualified airline manager had to be hired as the chief executive officer.
FG: It has been announced that Mike Conway has been hired as CEO. How do you plan to play your role as chairman?
M: A chairman is generally responsible for policies and governance so, I will not be running the business day-to-day. But I have the experience to give support to Air Jamaica management.
FG: Then let us address one of the more frequently asked questions. Does Jamaica really need an airline? Isn't it just a drain on the economy?
M: No, I don't accept that it is a drain on the economy. There is a net value to the economy brought by Air Jamaica. And the Government and the Opposition have bought in on the support of Air Jamaica.
A very senior Ritz Carlton Hotel manager made the importance of the airline clear to me. He said that Jamaica is very special because of the airlift that we have. And this shows a direct correlation between direct airlift and the growth of the tourism product.
Jamaica will have 5,000 (additional) rooms in the next couple of years. How do they plan to get tourists here? Its not like they can drive.
The confidence that coming to Jamaica has is underpinned by a national airline that flies with regular frequency out of international gateways.
And remember that every time Air Jamaica flies into a market, we are selling Jamaica. It is a very powerful marketing and distribution tool.
FG: Then what is the specific strategic focus for Air Jamaica going forward?
M: We intend to compete on several platforms. First, let it be abundantly clear, this airline benefits from the loyal support from Jamaicans here and abroad. We don't take that for granted. However, the growth of the airline will come from visitors.
So while Jamaicans provide support for the airline, we are not solely focused on that.
We have to get people on Air Jamaica by saying that the planes are a little piece of Jamaica that flies.
For Jamaicans, we want them to feel like they are at home and for visitors we want them to feel like their vacation has begun. This will not only be done with champagne but through the warmth of the flight crew. That is a special Jamaican trait that differentiates us from the other airlines.
Next, we will improve our reliability. We came through a difficult ten month period because of our financial problems. We had half our fleet grounded because of the accelerated maintenance programme. Now that is behind us and we have our full fleet available. We also have built up a spare parts inventory.
This leads us to our next platform, which is cost containment. That includes reducing the cost of maintaining our planes, which is what the spare part inventory does.
Also part of our cost containment is our route selection. Every empty seat is a cost so we only fly routes that have higher loads.
And we will put more effort to build our Internet presence to reduce our distribution costs and increase the effectiveness of our marketing.
We have also gone to staff and our pilots and said 'hold strain' even though this was not our first choice. I want to take this opportunity to say that we appreciate this because people are making personal sacrifices.
FG: In relation to your staff, we understand that there has been an increase in the number of unionised staff members. There is also word that staff morale is low. How will your new team handle this?
M: Let me say that we appreciate what the staff has done. Over the last six to eight months, the staff has taken a battering; especially the front line crew that deals with irate passengers whose flight has been cancelled. I can't say how much I appreciate that.
So joining a union is not relevant to morale. To me, its how you fundamentally deal with people that is important. Part of the job of the new CEO is to bring a greater sense of family and teamwork to the staff. We recognise that there is a need to build back excitement for the staff.
If we can get together as a team we can provide service and a product that does well financially. When we do this, we will provide a certainty for the future to improve the situation of the staff.
FG: Your term of office is for three years. At that time, will Air Jamaica be up for sale?
M: It is my understanding that the Government does not want to have an airline. But a question like that will come about in the future. Right now we are focused on bringing the airline to profitability. That is our mandate.
FG: All right, then at the end of your chairmanship, besides profitability, what will be your benchmark for success?
M: If I can leave here and feel that the over 2,000 employees feel that they are on the winning team and be proud of Air Jamaica, then that will be a good benchmark.
