The Conrad Hotel - 18 September 2003
Industry Leader Luncheon
"Getting Gulf Air Back Into Shape - Hogan Tells How".
When James Hogan was headhunted to become the first non-Arab to be CEO of Gulf Air in May last year, the loss-making carrier was being written off and under great pressure to fold its tent. However by next year, the Melbourne-born Hogan forecasts Gulf Air will break even – or better – and in the following year make money. And all this despite the Iraq War, the SARS outbreak and operating in a region inevitably clouded as unsafe.
How did this happen? Hogan gave some fascinating insights into how the carrier achieved its comeback at the Aerospace Forum Asia’s 128th Industry Leader lunch, this time co-hosted with PATA. As AFA President Martin Craigs said in introducing Hogan to speak on the subject “Innovation during Adverse Times” the airline – and indeed the industry as a whole – was going through a period of great change and exciting growth. And, he might have added, nerve-racking.
Hogan recalled that his first extraordinary board meeting with the three Gulf Air owners -- the governments of Bahrain, the United Arab Emirates and Oman – lasted eight hours and was conducted in Arabic.
Hogan was asked if he could turn Gulf Air into a world-class carrier and he replied: Yes. Any business can be world class, if among other things there are no strings, it is not politicized or hamstrung by governments and flies to destinations where the customer wants to go. He was given the mandate to “go for it”.
And “go for it” he did with apparent gusto, introducing a proper management team to run the airline instead of a consultancy, freshening the airline’s brand with new colours and, above all talking to its staff who were in fear of their jobs. “When you have an airline where the staff are worried about their survival and looking at their toes, and not looking ahead, the key issue was to kick-start the management and motivate and energise the people.”
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