IN THE third and final part of the Financial Gleaner's extensive interview with Gordon 'Butch' Stewart, the former chairman of Air Jamaica continues to expand on what he intended to do with the national carrier and now that he has ceded control to the Government, takes a look at the operation of the airline under Government control.
DETRACTORS
There are those people who say that Mr. Stewart was far too ambitious in his dreams for Air Jamaica; that he should have stuck to core routes; his pilots were overpaid; he kept going to the Government cap-in-hand; that the airline was simply being used to supply airlift to his Sandals chain of hotels. There are many detractors. What does he say to them all?
"Everybody thinks they can do it better and that running an airline is no different than running any other business, but they are wrong."
There is a big difference in the theory of running an airline and how an airline works and the things you have to do to make it work. It's easy talk. Journalists do not necessarily do their homework and, more often than not, they simply comment. What is important is having the conviction of your business model and not allowing yourself to be swayed by detractors, who know very little about the airline business.
INADEQUATE CAPITAL
The reason why Air Jamaica lost money is because it never had adequate capital in the first place. If you look at British Airways, it has great real estate, marked down aircraft and other assets. It is important to have a strong asset base, so that in turbulent times you do not go bankrupt. Air Jamaica was less fortunate, we started with nothing. I do not think that the Government should have lent more assistance, rather, we were a little naive because all we saw was this was an opportunity to stimulate the tourism industry. If you look over the last ten years, despite inflation and currency devaluation, tourism has grown in Jamaica with more operators coming into the market. What one has to remember is that Air Jamaica has been flying with its country in negative growth for all but the last two years. Jamaica now has a great airline and the Government has the pockets to deal with it, but it must have a clear vision of what it expects the airline to be."
In 2001, the airline was well positioned to make a profit and place itself on a sound footing, but then the events of September 11 put the industry in a tailspin, so much so that three years later, the commercial airline industry is reporting losses of US$4 billion.
Did Air Jamaica under Butch Stewart's stewardship simply need more time?
"I do not cry over spilt milk. When you are in business, you take your beatings and move on, tomorrow is another day. You win some, you lose some, that's the way it is. We rolled the dice with Air Jamaica and I leave it with my mission accomplished. I have handed the baton to the Government and it is a winner. The Government's job is to support the national carrier.
ATTRACTING INVESTORS
We come from a history where we think some great investor will come and take on our problems and provide all the answers. Investors will only come if we make it attractive for them to come. The airline provides the country's true independence, and that must not be forgotten. No longer can anyone come in, hold you to ransom and force you to sell at rates below value. I have not really left Air Jamaica, because it is still my responsibility to see to it that the people who now run it succeed in doing so."
Dr. Vincent Lawrence enjoys a reputation of being the best 'Mr. Fix-It' in corporate Jamaica today. The Government has, time and time again, reposed a lot of faith in his abilities and, once again, it turns to him to ensure the airline has a safe landing. What are Mr. Stewart's views on his successor?
"Vin Lawrence is a very bright, capable man with an enormous capacity for work. Let us see where he goes. I have every confidence in him and I wish him the very best of luck. I have worked with Aubyn Hill before and I have a bias when it comes to him, because I want to see him succeed. You can be determined to get things done, but you must know what you are doing. Aubyn has a learning curve and he will have to learn quickly. The airline business is a complex mix of engineering, services, marketing, equipment maintenance. There are a lot of bright people there and you will see it soar to even greater heights."
-A.E.
