Dennie Quill, Contributor
CONWAY
MICHAEL CONWAY believes Air Jamaica can make a profit. In a recent newspaper interview, the airline industry veteran says this is why he will take up the job as chief executive officer on November 1. He cautioned though: "I don't know how long it will take us to get there."
Curious as to why our national carrier would choose a veteran to boost its flagging operations in these challenging times, I decided to find out more about Mr. Conway. He served Continental Airlines, was co-founder and chief executive officer of America West Airlines, is an aviation consultant and holds a bachelor's degree in accounting from Baruch College, City University of New York. But the venture that I found most fascinating was his involvement with National Airlines.
National started flying May 27, 1999, and was billed as a hometown carrier that would lure tourists from a dozen cities in America to its Las Vegas hub. It operated with a fleet of 18 leased Boeing 757s. National filed for Chapter 11 bankruptcy in December 2000.
FLAWED BUSINESS PLANS
Years back I did a course called Economics 101, so I know that if a business plan fails within a year, it must have been flawed from the beginning. Mr. Conway was co-founder and president of National Airlines Inc.
Can Mr. Conway drive a turnaround in Air Jamaica's fortunes with sharks like USAIR, Jetblue and Sprint swimming in the waters? Apparently, Mr. Conway has dipped his toe in the Air Jamaica pond before - in 1974. But here we are in 2005, 31 years hence, and I daresay Mr. Conway will find the going much tougher.
As a guest columnist in the Las Vegas Sun, Mr. Conway flayed the Air Transportation Stabilisation Board (ATSB) for denying the Government loan guarantee application of National Airlines for US$51 million which would have kept the airline afloat. The ATSB was created to assist in the industry's recovery from the 9/11 financial fallout.
He wrote: "To date, the ATSB has approved only one applicant (America West for $380 million), and conditionally approved one other (U.S. Airways for $900 million). While I believe these carriers warranted the action taken, I cannot fathom the blatant disregard the ATSB has shown toward smaller, more efficient airlines.
NEW PHENOMENON?
The ATSB is comprised of members from the departments of Treasury and Transportation, and the Federal Reserve. The message they are sending is that if you want something, you better be big and you better have a lot of political juice behind you. Is this a new phenomenon? No. Is it a source of the erosion of confidence in our elected and appointed officials? Of course it is.
"In addition, when the ATSB granted approval of America West's application, they received warrants that, if exercised, would give the Government a one-third ownership stake in that carrier, a carrier that just happens to be National's largest competitor.
"I'm sure there are some who will read this and say, 'Well, this is just sour grapes coming from a company that didn't get approved.' I assure you, this is not the case. As the editorial boards at the Las Vegas Sun, the Las Vegas Review-Journal and the Reno Gazette-Journal can attest, I sat with them several months ago and told them about our concerns regarding the politics and conflicts inherent in the ATSB process.
"The need for people to be accountable for their actions has never been greater. If this is required across-the-board, it will help. More importantly, what is really needed in our corporate boardrooms and governing bodies are leaders who will define a culture where runaway greed and influence peddling have no shot at succeeding."
Today Mr. Conway has a new future. The more relevant question to the people of Jamaica is this: Does Air Jamaica have a new future? No disrespect to Mr. O.K. Melhado, but it doesn't make sense that he has been promoted on the board of Air Jamaica after serving as a member of the Air Jamaica Acquisition Group. What new sparks of wisdom will he bring to the table now?
This got me thinking about the protocol for appointments to boards, committees and commissions. At a King's House ceremony years ago, I overheard the minister with responsibility for Air Jamaica telling a board hopeful that all the seats on that board had been taken. The man had crept up beside him and was apparently whispering about his availability for service. A seat on Air Jamaica's board was a choice offering then, and I suspect it is today. The magnet that pulls people to such service can be summed up in one word - benefit.
CRITERIA FOR BOARD MEMBERS
So when ministers of government sit to consider representation on boards etc., do they think about putting the best minds to work, even those who gave no campaign contributions or who have no known political affiliation? Is there a duty to tap into the wealth of talent and energy that abounds in this country? Should such service be seen as an entry point for future leaders to develop?
There are some new faces on the Air Jamaica board, thank God for that. Let's see if their role will be to simply rubber-stamp the CEO. We wish them and Mr. Conway well.
The Private Sector Organisation of Jamaica (PSOJ) should be as concerned as I am about this issue. I suggest that the PSOJ establish a database of fully independent professionals who are potential director material. Information of this nature could then be used to increase access to citizens who have no known political affiliation but who can offer advice and be engaged in developing public policy.
Dennie Quill is a veteran journalist who can be reached at denniequill@hotmail.com.
