Do Airline CEOs Earn Their Money? What Is The Role Of An Airline CEO? Where – If At All – Do They Make A Difference?

The CAPA Annual Leadership Guinness Dinner Debate Dinner topic: DO AIRLINE CEOs EARN THEIR MONEY? What is the role of an airline CEO? Where – if at all – do they make a difference? Who are the key people in an airline? Perhaps because of their typically large union profiles, airline CEOs tend to be in the spotlight when it comes to pay and other remuneration. In general their income level is pretty much consistent with other industries, both in relation to other CEOs and relative to the average pay levels in their respective organisations. But that aside, it is interesting to look at where an airline CEO can really make a difference and which the levers are that (usually) he can pull. An obvious area is in determining strategic directions: investing in partnerships and alliances, driving cost reduction measures, “leadership” in staff relations, living the brand (Sir Richard Branson and Virgin). In today’s environment, one element stands out as vital – and is one where the CEO and his senior executive team, but mostly the CEO, make a major difference. That is in establishing alliances and partnerships. Partnerships are not just clinical, technically driven entities; those elements are important and they must fit, but if a partnership is to work, there must continue to be the right chemistry at the very top. And, if CEOs can make a difference, how is it to be measured? Is the indicator growth and profitability – and whose interests should take priority? Is it staff, equity investors, lenders, customers….? Much will depend on board membership and especially the chairman’s role. Their effectiveness and relationship with the CEO will be a vital piece of the formula. Often too, with flag carriers particularly, the ability to maintain good and effective relations with the highest levels of government is also a valuable skill. There are some clear examples in the modern era where airline leaders have made an outstanding difference. Among these are men like Herb Kelleher, who effectively created Southwest Airlines’ uniqueness; Maurice Flanagan who, with Tim Clark, created Emirates; Tony Fernandes, who established AirAsia; Stelios Haji-Iannou (and Ray Webster) who created easyJet; Michael O’Leary, who is synonymous with Ryanair’s success. From a branding perspective, there is Richard Branson. But changing the direction of an existing airline can be a much more challenging task in many ways.The number of successes in that area are fewer than might be expected - and to avoid embarrassment, we will not list them here! Moderator: CAPA - Centre for Aviation, Executive Director, Peter Harbison Panel Members:

• AACO, Secretary General, Abdul Wahab Teffaha
• Aer Lingus, Chief Executive Officer, Stephen Kavanagh
• CityJet, Chairman, Patrick Byrne
• Dublin Airport, Managing Director, Vincent Harrison
• Embraer, Chief Commercial Officer, John Slattery
• flynas, Chief Executive Officer, Paul Byrne
• IATA, Director General & CEO, Tony Tyler
• John R. Byerly, Consultant, John Byerly
• PlaneConsult, Managing Director, Conor McCarthy
• TAAG Angola Airlines, Chief Executive Officer, Peter Hill
• Travelport, Chief Executive Officer, Gordon Wilson