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Air Jamaica revamped - New board named, David Banmiller tipped to be new Air Jamaica CEO.
published: Thursday | July 3, 2008

Arthur Hall, Senior Staff Reporter

Newbies


( L - R ) Derick latibeaudiere, Colin steele, Chris berry

AN EXPERIENCED airline veteran, who recently led a Hawaiian carrier through Chapter 11 bankruptcy, could soon be returning to Air Jamaica for a second attempt to lead it to safety, or prepare it to attract private investors.

Minister without portfolio in the finance ministry, Don Wehby, yesterday confirmed that Canadian David Banmiller is one of four or five persons being considered to replace Shirley Williams as the person in charge of the day-to-day operations of Air Jamaica.

Wehby did not name the other persons on the shortlist, but he made it clear that the Government would be looking overseas for someone to fill the vacancy.

According to Wehby, the search is on for a chief executive officer with experience in running an airline, and who will take the firm decisions needed to prop up the ailing Air Jamaica.

That decision should be made before the end of the month and Banmiller is considered the favourite.

He served as executive vice-president and chief operating officer at Air Jamaica from 2003 to 2004, but did not have the authority to take the carrier in the direction he wanted.

Banmiller has earned a reputation as a tough customer who makes hard decisions, and is known in the industry as a mover and shaker.

He left Air Jamaica to take on the top job at Aloha Airlines in Hawaii.

Less than one month into that assignment, Banmiller reduced the company's top management by 36 per cent, firing some employees and freezing open management positions.

It could take similar decisions to turn around Air Jamaica, particularly at this time when rising fuel prices have depressed the airline industry worldwide.

Air Jamaica is also struggling to fly with a mountain of debt on its wings.

The Government has already made it clear that it can no longer afford the airline, and Wehby told journalists that this was one of the reasons the decision was made to ask the former board members to resign and appoint a new, leaner board.

"I believe that we need a more focused board with a level of expertise of turning around and making some tough decisions for the airline," Wehby said.

According to him, the decision did not reflect negatively on the members of the previous board, and six have been asked to serve on the new body.

"The previous board was simply too large to ensure that quick and immediate actions were taken," he said.

Williams will continue to lead the board, but the executive role which she assumed last year has been taken away, although Wehby was adamant that this does not represent a demotion.

The primary objective of the new board will be the divestment of the airline and the board members will get support from international airline consultants, GRA Incorporated.

arthur.hall@gleanerjm.com

Air Jamaica's debt sheet

  • Last year, the airline lost US$171 million (J$12.14 billion)

  • For the first five months of this year, it is estimated that Air Jamaica racked up US$85 million (J$6.035 billion) in losses.

  • The carrier's accumulated losses is now about US$1.2 billion or J$86 billion.

  • Fact file

    ✔ Banmiller has expertise in finance, marketing, aviation-related mergers and acquisitions and labour union.

    ✔ President/CEO, Pan Am Airways (1997-1998); Sun Jet (1996-97).

    ✔ Vice-president, American Airlines, International Division (1986-89).

    ✔ President/COO, Air Cal (1978-1986).

    ✔ MBA, Loyola Marymount University and BA in business administration from Villanova University.

    ✔ Served on the boards of Air Cal, Furon, Pan Am and Petro.

    Dumped


    ( L - R ) Rex nettleford, Millicent hughes, Marcia forbes


    ( L - R )Ian kerr, Kevin lue, Basil lindo, John lynch

    Retained


    ( L - R ) Shirley williams (chair), Omar Parkins, Dennis lalor


    ( L - R ) Richard byles, Carolyn Hayle, Wilfred Bagaloo

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