Stewart
Al Edwards, Financial Editor
LAST WEEK, one of the Caribbean's leading entrepreneurs, Gordon 'Butch' Stewart, relinquished control of the national carrier, Air Jamaica, ceding his 75 per cent holding to the Jamaican Government.
After 10 years, the Air Jamaica Acquisition Group (AJAG) headed by Mr. Stewart returns Air Jamaica to state ownership. In order to maintain the airline's viability AJAG has agreed to make a contribution of US$20 million to its operations with the Government coming in with US$25 million worth of credit.
Earlier this month at a Rotary Club luncheon, Mr. Stewart said that despite the national carrier's financial woes it cannot be allowed to go under, stressing that it would need additional funding over the next two years.
MARKETING
He declared: "If Air Jamaica fails at this time, it would be a catastrophe of the proportions that would make FINSAC look like petty cash. The bigger picture is that the losses of Air Jamaica is small change in comparison to what it contributes to the Jamaican economy."
In the first part of an exclusive interview granted to the Financial Gleaner, Mr. Stewart reflects on his tenure at the helm of Air Jamaica.
"I had a distinct idea of how Air Jamaica should be marketed. The marketing of Air Jamaica had to be very scientific. Knowledge of the market and personalities would, in my opinion, go a long way, and beyond that you have to let people know what it is you are selling. It was vitally important that the airline received the support of Jamaican communities throughout its routes. Now they will only support you if you are providing a genuine product that fits what they want.
"Therefore, we placed a lot of emphasis on advertising and rebranding the airline and offering a totally new business model. I think Air Jamaica has come a long way and is a hell of an airline."
What does Butch Stewart see as Air Jamaica's unique strengths?
"We had a unique staff who always went beyond the call of duty. When flights were late and having to deal with angry passengers they never ran and hid away from the task at hand. Chris Zacca is a fantastic motivator and he was able to pull a committed staff together. He placed a great deal of emphasis on training and it paid off. I mean, just to train a pilot costs millions of dollars."
ACCOMPLISHMENTS
Looking back over 10 years what accomplishments is he particularly proud of?
"We inherited the typical
government-run airline which was unreliable with obsolete equipment anda terrible on time performance, and turned it around to where today there are 20 airplanes and it has the most modern fleet that flies the Caribbean. It now has a most comprehensive and groomed management and staff complement with a multitude of routes. There are now 12 United States routes that are fully developed and we have added flights to Manchester on our U.K. route, thus now servicing the entire Jamaican community over there. For a third world airline to go up against the best of the best is a remarkable achievement. We took on Delta, American Airlines and British Airways and won many battles. We went into Philadelphia and came out with better loads than airlines that are based there. We have flown to England with better loads and yields than the flag carrier of that country. We were the catalyst that stimulated traffic to Jamaica."
See Part Two next week.
