The iPhone era

Still, air travel remains a cornerstone of the modern world. Whether for commerce, humanitarian aid or fundamental interactions across global boundaries, flight has made the world a smaller place. And while the glamour may have faded across the decades and singlet tops replaced suits in some quarters, the ability to bridge our world in hours has grown ever stronger. In many nations, governments subsidise the industry as an essential service, while others would rather risk the taxpayers’ dollars on Keno. Even so, these two airline models line up against each other on what is perceived as a balanced playing field.

It is a difficult situation for governments and airline managers alike as they ponder the pride of a national flag carrier against relatively open skies.

To date the answer varies from country to country with no basic template fitting all situations. Public opinion sways to and fro just as the balance sheets alternate between red and black. At the very core, the employees can only read the headlines and wonder what’s coming next.

Flightcrew, cabin crew and the sea of ground personnel that make an airline run, inherently have a deeply invested interest. It’s an interest that goes beyond many other industries and comes with a huge dose of pride. From the ground up, all parties are aware of the critical nature of the end product – the

Huge loss or bountiful profit, the safety of flight is paramount regardless.

safe conveyance through the skies of family and friends. It’s not necessarily written into any contract of employment, but half-measures just won’t cut it.

They identify with the brand on the tail as if it were a national flag or a banner of their football club. A sense of belonging pervades the airline culture and it is one of the better aspects of the profession.

Even when the headlines predict doom and gloom, or when an airline turns a corner, its impact at staff level is a little different to what may be experienced in other fields. Obviously the company’s fortunes directly impact upon job security, but inherently the share price doesn’t affect the day-to-day operations. The focus on the immediate task reaches beyond the balance sheet and cannot be influenced by trending graphs and speculation.

Huge loss or bountiful profit, the safety of flight is paramount regardless. In fact, media commentary can serve as a distraction – a curiosity over which a flightcrew has no control. To that end, the information is better shelved until it can be consumed over a coffee at a more appropriate time. It is then pondered with a range of responses as the bottom line can seem so far removed from the flightdeck and cabin.

Aircraft can be filled to the brim with passengers and freight from one fiscal quarter to the next and yet the results can vary significantly. Yield, depreciation, fuel prices and a long line of variables can be moved around the chess board with a drastic change in a company’s fortunes. These elements are virtually invisible to the crew, although they continue to strive for improved efficiencies as their operations permit.

Fundamentally, the boardroom and flightdeck are very different places, but both should always strive for the best outcome regardless of the variables in play. For the crew it may be weather and terrain, while the board must conquer its own mountains. Added to the mix is the government of the day’s influence and legislation. Seemingly every level of aviation is subject to significant influences outside its own sphere and often success is truly measured by how those challenges are overcome.

And success can be measured in so many ways. Safety, reputation and profitability are all indicators of an airline’s performance and should any aspect become compromised, the others will surely follow. Airlines are a complex multi-faceted beast with a complicated network of interdependence. At times the various players may overlook or underplay the importance of another, but only co-operation and common goals will ever really lead to success.

Airlines are no longer the field of pioneers such as Sir Hudson Fysh, Sir ‘Reg’ Ansett, Juan Trippe and even Howard Hughes. These men were tasked with taking a fledgling concept from their backyards to the world. Today, the world is at the airlines’ feet but fiscal survival provides the greatest challenge. It is no longer merely about the miles, it is more about the marketplace. It’s a complex business in a complex world and one must wonder what it takes to want to run an airline.

For all of the dollars invested, the returns can be lukewarm at best with the very real possibility of bankruptcy just around the corner. Fortunately there are those who maintain the faith and persevere with the vision of aviation against the odds. Without their persistence, the Warren Buffetts of the world might well win with a very valid argument. As Buffett also said, “I have an 800 (free call) number now that I call if I get the urge to buy an airline stock. I call at two in the morning and I say: ‘My name is Warren and I’m an aeroholic. ’ And then they talk me down. ” Fortunately for our skies, the aeroholics are hanging in there.