Michael Conway, CEO of Air Jamaica ... "Giving up is not my style, no matter the difficulty of the task!"
1. Can an economy, like ours, which is highly vulnerable to rising energy costs and especially against a background of increased competition within the airline business, afford to be subsidising Air Jamaica?
Air transportation is a critical component of Jamaica's GDP (Gross Domestic Product) and, as such, should not be left to the priorities of outside parties. Today, Air Jamaica carries almost half of all traffic to Kingston and over one-third of traffic to Montego Bay. This is not to say that the country's support of Air Jamaica should be without limit; it should be commensurate with the benefits derived. It is not at all unusual for airlines of smaller countries to receive government assistance, particularly where accessible and affordable air transportation is vital to the local economy.
2. Based on the global operating environment and the negative impact such an environment has on the airline industry, does Air Jamaica have the capacity of a viable concern?
There are only a few airlines operating today at a profit because of record high fuel prices. Air Jamaica certainly has the potential to be a viable concern, but it must change some of the fundamental ways it does business. For example, Air Jamaica must optimise its geographic positioning as an ideal gateway throughout the Caribbean region, and as an ideal transit point between North and South America.
3. What blueprint do you have to make the airline profitable?
No matter how complex the challenge, there is all too often a tendency to believe that there is a simple and quick solution right around the corner; rarely is this the case. Air Jamaica needs to adapt its operations to effectively compete in the rapidly changing airline environment. We must have an open mind to change and have the resolve to implement change where required. Everything we do and how we go about it is under review at the company. This includes the markets we serve, the equipment we utilise, the alliances we have and are seeking with other carriers, and putting in place operational checks and balances that will ensure sustained schedule reliability and on time performance.
4. Have you been using any profitable airline as a benchmark and, if so, which airline?
We do not believe we have all the answers to everything that ails the industry and, accordingly, we do our best to stay abreast of what other carriers are doing successfully in solving problems that are common to what we face at Air Jamaica. For example, we have much to learn from a carrier such as Southwest in terms of efficiency, and we are constantly looking at innovations being introduced by other international carriers with respect to the Internet and on-board amenities.
5. Why did you accept the job as CEO of a money-losing airline?
My decision to accept the position was essentially based on the following two factors: (1) I believe Air Jamaica has tremendous potential, and (2) I believe I can help the airline in getting there.
6. What would make you give up this job?
"Giving up" is not my style, no matter the difficulty of the task! I am prepared to stay the course for as long as I believe I can provide benefit to the organisation.
7. Should the government reprivatise the airline?
I am certainly not in a position, nor do I have the expertise to opine on complex matters of State that such a decision would entail. However, it should be noted that the airline industry is a capital intensive business that necessitates that a carrier have access to traditional sources of capital in order for it to be a viable competitor. Accordingly, a carrier's ownership structure should be that which provides it with the best chance for success balanced with the cost of ownership and benefits derived.
8. Any surprises since taking up the job as CEO of Air Jamaica?
Yes, there have been some pleasant and some not so pleasant, but none so profound as to sway my view as to the airline's potential. As an aside, I would add that in my 35-year career in the industry, I have never seen the likes of the baggage that our passengers bring to the airport!
9. How is Air Jamaica positioning itself to benefit from Cricket World Cup 2007?
We have recently been awarded the bid in conjunction with our regional airline partners to transport the "Teams, Officials, Media and Sponsors" on the behalf of CWC 2007. In that regard, we are actively meeting with various Cricket Clubs in order to facilitate as many group movements as possible. Additionally, we are working closely with all "Official Travel Agencies" for CWC 2007 to fulfill their travel needs, and where necessary, we intend to put on additional flights.
10. For Cricket World Cup, will fans be able to stay in Montego Bay and travel hassle-free into Kingston for matches and without going through immigration?
We recognize the need to provide efficient and hassle free air transportation between MBJ and KIN, and we are working with the airport authority, immigration and customs to ensure that this requirement is met, notwithstanding the unprecedented level of demand that will occur.
11. Why are there so many delays and cancellations of flights?
During the past November to March winter season, our schedule reliability and on time performance ranked among the best in the industry. It was off this performance level that we aggressively scheduled the airline for the summer season, and in retrospect, this decision proved too aggressive, and we apologize for the inconveniences experienced by our passengers. Some of the causes were beyond our control as we experienced our own delays in receiving back aircraft from overseas companies that perform the bulk of our major airframe maintenance and logistical challenges we faced during the renovation of NMIA. Our fall schedule will be more conservative, and we are confident we will return to the performance levels demonstrated earlier in the year.
12. Would you support a merger of say BWIA and LIAT with Air Jamaica to create one regional airline?
Over the years there has been no end of pundits advocating that the challenges faced by many can be resolved by putting all the problems in a bigger basket. This view is a sweeping generalization that is rarely accompanied by any underlying basis or sound reasoning. The vast, vast majority of airline mergers have been unsuccessful as proponents seek simple and quick solutions to complex matters. There are, however, substantive areas in which individual carriers can achieve meaningful benefits from route rationalization (alliances and code-share agreements) and collaborative undertakings such as the successful bid by Air Jamaica, BWIA, Star and LIAT with respect to CWC 2007.
