The year of the turnaround chief

December 1st 2014

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Life at the top of the region’s airlines was generally stable in 2014, with a few notable exceptions. Airlines that have endured the deepest traumas in the last year also were the carriers that suffered upheaval at the top. Read More » In mid-December, Thai Airways International (THAI) finally confirmed a new president, Charamporn Jotikasthira, a former president of the Stock Exchange of Thailand (SET) and highly regarded IT innovator. He arrived at THAI almost 12 months to the day of the decision by the last president, SorajakKasemsuvan, to resign “for health reasons”.

John Slosar

Christoph Mueller

Lucio Tan

James Hogan

During the 12-month leadership vacuum, which spanned extended political unrest in Bangkok and a military coup in May, two acting presidents failed to stem the carrier’s financial losing streak. The new president, a Massachusetts Institute of Technology graduate in electrical engineering and computer science, is credited with tripling the turnover of SET during his tenure. Analysts attribute THAI’s poor performance to tourist’s general lack of confidence in Thailand as a safe haven leisure destination and the costs of maintaining a bloated work force.

At Malaysia Airlines (MAS), the incumbent managing director, Ahmad Jauhari Yahya, has endured months of critical media coverage about MAS’s management of the losses of MH370 and MH17. Despite the speculation, the university trained engineer and iron man competitor will remain with the airline during the transition to his recently announced successor, Christoph Mueller, who turned around Aer Lingus.

At TransAsia Airways, a Taiwanese carrier that was enjoying a feisty revival, the airline’s president, Chooi Yee-chong, resigned in the aftermath of a July crash that killed 48 people. Chooi had tendered his resignation before the crash but stayed on to assist the families of passengers who had lost their lives. Fred Wu was appointed acting president.

Some familiar faces also returned to airline’s executive offices and boardrooms in 2014, with octogenarian Lucio Tan taking the prize for the most emotional buyout of the year. Tan retook full control of Philippine Airlines (PAL)in September, following his sale of 49% of the airline to San Miguel Brewery two years earlier. “Like many of you, this is where I belong,” he told staff. “I love PAL and PAL loves me back.” Popular Jaime Bautista, the airline’s former president, is revamping PAL’s fleet and strategy since accepting Tan’s offer of rejoining PAL as general manager.

Giovanni Bisignani, who retired as director general and CEO of the International Air Transport Association in 2011, after a decade leading the association, has also come back home – as a non-executive director of the “new” Alitalia. Bisignani, who has a many a tale to tell about the “old” Alitalia has served as a CEO of the Italian carrier.

In March, Ivan Chu, the airline’s former chief operating officer, succeeded John Slosar as chief executive of Cathay Pacific Airways, only the second Hong Konger to run the carrier in its 68-year history. Slosar is chairman of the carrier as part of his remit as chairman of John Swire and Sons and the group’s trading, property and engineering arms. The scholarly Chris Pratt, Slosar’s predecessor, took himself off to London for 12 months of the student life.

Etihad Airways boss, James Hogan, announced several appointments across the region as he used his influential equity in Jet Airways and Alitalia to revitalize the C-suite line up of the carriers. Australian Cramer Ball, formerly in charge of Air Seychelles and an Etihad veteran, took the top job at Jet, while three former Etihad executives, Duncan Naysmith, Aubrey Tiedt and John Shepley are CFO, chief customer officer and chief planning and strategy officer respectively moved to Alitalia.