Opportunities Today :- January 2005 Issue

Interview of  John Anderson

 

John Anderson - General Manager, India (Gulf Air)

John Anderson is General Manager India for Gulf Air - the airline which has had a major turnaround in 2004 with its 3 year restructuring programme - Project Falcon, and has also won the prestigious Best Stand Award at the WTM held in London in November 2004. John shares with us his tenure in the airline industry and the future plans of Gulf Air.

What are your areas of responsibilities?

As General Manager India, I am the legal representative of Gulf Air in India. My major involvement is the Sales and Marketing of passenger traffic from India. Outside of that, my role is more of an administrative one, where our Cargo Manager keeps me abreast of cargo issues and also reports directly to Head of Cargo in Bahrain. Similarly Ground Operations, Engineering and Finance keep me constantly updated and also report directly to Bahrain. I also closely monitor competitor activity and Government policies directly affecting our business.

 

 

When did you enter the Aviation Industry and how did you go about it?

My career started as a Commercial Management Trainee with BOAC in 1967 learning all commercial aspects of the airline business in an intensive 3 year "hands on" induction and moving on to take up key roles in Reservations and Marketing. It was an intense apprenticeship, encompassing studies for the Institute of Transport Examinations at the same time. It was a really good base for the Airline Industry. I stayed seven years at BOAC, learning more about my chosen career.

1974 saw a move to Swissair as London West End Sales Representative. In my 20 years with Swissair I moved through a succession of roles as Manager Zimbabwe, Zambia, Malawi & Botswana, Deputy Sales Manager UK & Ireland, Telemarketing Manager UK, Telephone Sales Manager UK & Manager Midlands based in Birmingham UK.

I joined Gulf Air ten years ago in late 1994 as Market Development Manager for Europe and America and moved on to become General Manager UK, Ireland & Scandinavia and then General Manager Offline Europe before moving to Mumbai to take up my current position.


Tell us what is Project Falcon all about?

Project Falcon was the brainchild of President and Chief Executive James Hogan. James has led our company for 2˝ years now. From the beginning of 2003 Project Falcon was launched - as a blue print, a recovery plan to return Gulf Air to profitability and re-establish it as a world-class airline- viable, customer oriented, innovative and efficient. All the basics were there - aircraft, routes, staff, and offices - what we required was a workable, progressive plan. 

A blueprint was prepared for the first 3 years and James Hogan as President went to the Board with this blueprint of how he planned to turn the company around and asked for their support and commitment. Logically the blueprint had to be detailed, factual, and achievable. The Board of Directors accepted the Project Falcon plan and it was adopted with their full support. In 2002 our deficit was 120 Million USD and our first goal was to reduce the deficit by about 50% in 2003 - which we achieved. 

The plan for 2004 is to break even and we are on track to do so and that's remarkable especially with the escalating fuel costs this year and the impact this has on airlines. Incidentally, Project Falcon's three-year template of recovery has now been extended. Through our positive performance, James Hogan has won the confidence of the Board and they've agreed for a further 3-year plan from 2006 to 2008. 


How many flights does Gulf Air operate to and from India?

Currently we are operating 78 flights per week from the Gulf to India and return - 21 of them under the Government's "open sky" policy. Our normal schedule is 57 flights a week, which is split over 7 cities i.e. Mumbai, Delhi, Chennai, Kolkata, Bangalore, Kochi and Thiruvananthapuram. Gulf Air also flies extensively from the Gulf to the Far East, Australia, within the Middle East and Gulf, to Europe, North Africa (Casablanca, Cairo and Khartoum) and we serve East Africa and USA on a code share basis in partnership with other airlines. 

 


What factors have lead to growth of traffic from India into the Gulf?

When the Gulf Oil fields were established in the 1960s, the Gulf Arab states needed lot of skilled labour as they have built cities out of deserts. A lot of this has been achieved with Indian Technology, Indian skill and Indian hard work. Many Indians have gone to work in the Gulf and have earned good incomes there for 20 to 30 years. We have many large Indian communities resident in the Gulf who more and more require access to their towns and cities in India - so there is a constant pressure to increase our frequencies and our destinations.


How do you plan to change the image that Gulf Air is meant only to carry labour class or semi-skilled workers from India to the Gulf? 

That's an interesting question - I think that a labourer in the minds of many of us is the guy from the village who wants to work in the Gulf to earn more money for himself and his family - perhaps a little unsophisticated, a first time traveller. But when he's been overseas for a while - then he is a normal working guy and he goes on holiday to see his family in his homeland, is he still a labourer? 

All airlines from India carry workers - India is a powerhouse of workers - labourers, semi-skilled and highly skilled technicians. It is a major market segment to the Gulf, Europe, USA and Far East. 

We certainly carry them and are happy to do so - but we are also keen to carry tourists, businessmen and people visiting families and friends abroad. The steps we are taking to improve our products to surprise and delight our customers are visible evidence. We hope to deliver wide range of products and choices as well as great, consistently high levels of customer service that will satisfy both the international jet setters and the first time traveller.


What do you feel about India Shining and Incredible India?

The Incredible India campaign is really exceptional. The pictures, videos and music conjure up a need to want to visit India - to be a part of it. 

India Shining and the economic success is based on the platform of good education and some of the funding for this has come from the workers in the Gulf. I believe India is in a beautiful position to really take off. You have the resources; the intelligence, the "know how" and I think equally India has always been a place of interest for incoming tourism. India has significantly developed in the last 3 to 4 years. 

Keen to focus more acutely on the tremendous wealth of tourism opportunities in India Gulf Air has launched its brand new offering "Indian Experience", a brochure of package tours featuring only India. 

"Indian Experience" is currently being aggressively marketed in all parts of Gulf Air's European, North American, Middle Eastern and Arabian Gulf network to strongly stimulate tourism to India. Gulf Air is sure that this comprehensive and professional product that will undoubtedly help to raise interest abroad and bring even more foreign tourists to India. With Gulf Air's long history of operating to India and the fact that we now serve 7 cities through 78 flights per week, we feel it is a logical statement of our continuing commitment, involvement and interest towards India.

 

 

How long have you been in India and what are the challenges you have faced during your tenure?

I have been here for the last two years. In 2003 there were significant changes on our India routes - we launched Gulf Traveller in July to Trivandrum and Bombay and also started a new operation from the Gulf to Cochin. In November we also started flights to Kolkata and Bangalore - bringing the number of Indian cities served up to 7 from the existing four of Bombay, Delhi, Chennai and Trivandrum. So the challenges have been to bring these new routes and products fully on board, ensuring their viability and continuity.

More recently we have launched a through flight from Bombay to London and return that touches down in Muscat for 80 minutes. This represents a great connection in both directions and enables our customers to leave Bombay at lunch time (1400) and arrive London in time for dinner (2100). 


Tell us more about Gulf Traveller.

Gulf Traveller was also a part of Project Falcon. We saw it as a great opportunity to give us greater flexibility with an all economy class product. It is most definitely not a “no-frills" airline - its all-economy, full service. It operates to markets where there is little demand for Business Class and logically appeals to the more price sensitive travellers - holiday makers, business travellers, groups and of course workers. In India we operate it daily from Trivandrum and also one of our 4 daily Mumbai flights is also a Gulf Traveller. It has 257 economy seats, with exactly the same level of service we provide our economy customers on all our aircraft. With Gulf Air Traveller we are tailoring to the needs of the community, to the needs of the market. 

As an airline the addition of Gulf Traveller to our fleet gives us total product flexibility - our Airbus A 330s’ and A 340s’ offer three classes First, Business and Economy; our Boeing B 767s’ and Airbus A 320s’ offer 2 classes Business and Economy and our Gulf Traveller B767s’ offer all economy. So whatever the route finances, whatever the statistics and market opportunities show, the logic is to put the right product for routes that suits best. 


How do you see Tourism to India?

Whilst my portfolio is primarily centered around the need to increase the numbers of passengers we carry ex India, logically sitting here one becomes fully aware of the enormous potential India has for tourism and how it consistently under-achieves in attracting substantially more visitors.

India's tourism potential is phenomenal. I understand that in 2003 two and a half million people visited India. The opportunities to win more and more tourists to this beautiful country are enormous and yet under-realised.

I have strived to put India more and more on the map as far as my colleagues overseas are concerned. Our President James Hogan asked me to give a 30-minute presentation on India to our Worldwide Marketing Conference this year - a task I was very happy to perform.
I have also consistently pushed my colleagues in Gulf Air Holidays to produce the India only brochure - Indian Experience'. The 72 page holiday package brochure has been launched and distributed to our overseas offices to promote travel to and holidays in India. I think that perhaps Gulf Air is the only foreign airline to produce a dedicated package brochure solely on India. It is a tangible sign of our dedication, commitment and support to help bring more and more tourists to this beautiful and engaging country.

Tourism India helped us enormously with our Indian Experience brochure and we are very grateful for their assistance and professionalism.

 


What is your perception of India as a tourist destination?

With 7,000 kilometres of coastline India has great potential. Goa and Kerala have seized the initiative a long time back and are extremely popular places to visit. I generally direct friends to Rajasthan or Kerala. Jaipur, Jodhpur, Jaisalmer and Ranthambore are fascinating, whilst Kochi, Aleppey & the backwaters and of course Trivandrum have a charm of their own. I really like Mumbai - if the sea was blue this place would be a haven - tourism in Mumbai would really take off. Couple great beaches with the incredible diversity and vibrance of the culture and you have a sure fire winner.


What has been your personal experience about Travel and Tourism in India? 

Having been here for two years, many friends and family have visited us. I tell them, "Bombay is a great, fun place, but you wouldn't want to spend a week or two weeks here. Spend a couple of days and then travel into India and have a look, come back and spend a couple of days on your way home". Their trips are always a revelation; they are delighted by their experiences, the sights, the smells, the tastes, the views, the friendliness and the overwhelming and diverse culture. They return home with promises to come again soon, and they tell their friends about it. But the probability is they would not have done it on their own - they needed us as a safety net.

I feel potential visitors should be made more aware that security is good, crime is minimal, bottled water is available everywhere, medical treatment is good and easily available, imported goods are freely available and that even in smaller, busy restaurants the food is good, tasty and hygienic. 


What were the airline’s achievements in 2004?

Now, two years into Project Falcon, we are not just an airline in a recovery position. We have gone beyond that. We have actually relaunched our company, changed our image, our brand and the perception of what we are. We have introduced some really unique innovations - 5 star chefs in our First and Business class cabins on board our Airbus A330 and A340 long-haul aircraft, we also now have Sky Nannies on board for the Europe / Gulf / Australia routes. We've launched Gulf Air Holidays and its up and running. A number of initiatives we have taken which would be commendable for leaders in the aviation industry and we have done all this in the recovery phase. I think it has been really exciting. 
We've actually taken the market by storm with our initiatives. And of course as mentioned we have also introduced Gulf Traveller - our full service, all economy airline, which is proving a great success with year round Seat Load factors in excess of 75%.

The airline is generating revenue and has become an airline of reckoning. Throughout 2004 we have introduced new ideas 

Our Sky Nannies assist mothers travelling with young children to specifically help attend to their needs. They are trained by Norland Nannies a UK company renowned for it's excellence in training nannies, especially for the rich and famous. We went for the industry best.

The same thing happened with our Sky Chefs. The Sky Chefs are all from five star hotels or restaurants and are brought in to do the job on board the aircraft. They take the place of one of the crew members, whereby they have undergone training in all aspects of on-board crew training. So they integrate fully. The Sky Chef on board changes into his Chef's outfit and he comes out and explains who he is and presents you with a menu and discusses with you what's on offer today, how would you like it cooked and when would you like to eat. It gives you the opportunity to eat when you like and what you like. They make hand crafted sandwiches which are simply out of this world. The presentation is "cabaret" - You go to a restaurant for two things - one for food and you want atmosphere. Here you have your own 5 star Sky Chef on board - it is a terrific experience. Our A330 flights from Mumbai and Delhi all have Sky Chefs on board.

We have completely revamped our Premium Cabin Lounges in Bahrain and Abu Dhabi. In Bahrain our First Class passengers can use the lounge and be served a 5 star meal by our on board Sky Chefs who also work on rotation there. First & Business passengers can dine in the lounge, board the flight and then just relax and enjoy their sleep. 

As you can see, Gulf Air truly wants to make travelling a better experience. We want to do what our customers want us to do. James Hogan is very clear about his attitude to the airline business, that we wish to surprise and delight our customers. I think you'll agree - we've gone a long way towards doing just that.

Overall for Gulf Air, 2004 has received consistent recognition from our customers and the media for the dramatic and successful changes that have been unfolding. We have won many prestigious awards:

The dramatic turnaround in Gulf Air's fortunes won international recognition from the Centre for Asia Pacific Aviation (CAPA) where we were awarded the prestigious Airline Turnaround of the Year Award 2003, presented annually by the Centre for Asia Pacific Aviation. This is presented to the airline whose affairs were most significantly transformed during the year. Also:

Winner - Middle East & North African Platinum Best Airline Travel Award 2004

Winner - Skytrax Most Improved Airline Award 2004 

Winner - Skytrax Best First Class Onboard Food Category 2004

Winner - Skytrax Best Business Class Check-in Category 2004 

 


How has the emergence of "no-frills" airlines affect scheduled airlines like Gulf Air?

The low cost carrier phenomenon is very interesting. I recently attended a low cost carrier symposium in Delhi to understand more how they would affect my business. It would seem that many companies both inside and outside India see this as a viable business proposition. Clearly the sheer numbers of the Indian population are attractive - if they can be encouraged to travel by air and if the price is affordable.

The low cost carrier frenzy that emerged some 6 months ago may be dulled by the massive escalation in aviation fuel prices, which naturally increase costs. It will be interesting to see how Air India succeeds with their new low cost model Air India Express. For Gulf Air and other international carriers, any inroads into the domestic market for low cost could be interesting, permitting easier access to the gateways of the international status airports and thereby feeding the international carriers more readily. 


Which is your preferred destination being a widely travelled person?

I think its like appetite - sometimes you fancy a biryani and some times you fancy a dosa. Places have different appeals - I like to visit Delhi and Kolkata, but I might not go there as part of a holiday. I like the beaches of Goa and Kerala where I would be inclined to stay a week…

Although I have travelled quite extensively, I am always keen to see new places, to explore. Florence holds a special place in my thoughts and I am sure I will return. Ihavereally enjoyed the Far East, Australia and the Caribbean. My holidays have generally been of two weeks - one week of culture and one week of beach - I need to chill out. 


On your personal side, tell us about your family and hobbies. 

My wife Alice and I have three children - Jamie & Lara are at University in the U.K. and Katy is just about to enter University in UK. All three of our children have been fortunate to visit us in India regularly and they love it. They bring their friends and head off for Goa, Kochi and more recently Himachal, where my son returned with photos that were simply wonderful. Now, I definitely want to go to Himachal and Sikkim. I like reading in my spare time and keeping in touch with friends and family over the net. I also really enjoy music.

 


What is your advice to Airline aspirants?

The Airline industry is ever changing. As an airline person you will succeed if you are alert, alive and have a good depth of energy and enthusiasm. Customers like people who smile. What differentiates one airline from another is the point of contact, which is the employee. You can travel on mediocre airlines and have a great experience because of one staff member. You can also travel on a great airline and have a mediocre experience and that's again the individual. The point of contact is so important. 

For individuals in any business the logic is to do the job that you have and do it well. People recognize that. Too often people say that this job's okay but give me that one and I'll show you what I can really do. I am not interested in those people. Those who understand their job and do it really well are destined to succeed, whereas those with big heads who think that overnight they can become supervisors and managers, rarely make the grade. It's a question of personal integrity. Understand yourself, understand what you are capable of and slowly you can make other people understand what you are capable of as well. Keeping promises is one of the most crucial things - to yourself and to others. Enthusiasm and hard work will always shine through even if you do not have great abilities, people will still have respect for you. And this holds good wherever you work - be it an airline, a travel agency or even a bank. 


About Gulf Air

Started out in 1949 as the Gulf Aviation Company, Gulf Air was the brainchild of Scottish Aviator Freddie Bosworth. It took the business acumen and funding from a group of visionary Bahraini businessmen to establish the airline as a commercial enterprise.

The airline was initially owned by BOAC (British Overseas Airways Cooperation) and from a modest beginning, Gulf Air today serves the entire Middle East region and is one of today's strongest regional route network.

Gulf Air stretches from Europe to Asia covering more than 50 cities spread over in 33 countries with a fleet of 35 aircraft. Today, Gulf Air is owned by the Kingdom of Bahrain, Oman and the Emirate of Abu Dhabi and is the only truly pan Gulf carrier in the region. 
The airline is in the second year of a three-year strategic recovery programme, headed by President and Chief Executive, James Hogan. The airline, which is making rapid strides towards regaining profitability by 2005, aims to further evolve by taking its renowned cultural strengths, which have been gained over more than half a century, into a global environment.

The dramatic turnaround in Gulf Air's fortunes has won international recognition. In January 2004, The Centre for Asia Pacific Aviation (CAPA) presented the airline with the prestigious Airline Turnaround of the Year Award for 2003. Gulf Air was also the recipient of the 2003 Platinum Award for the Best Airline in the Middle East and North Africa, recognising the airline's commitment to service excellence. 

Some of the facilities offered by Gulf Air include providing Sky Nanny on board on selective routes, Gulf Air Traveller - the new all- Economy full service airlines, Gulf Air Holidays with variety of packages across the globe including the Arabian Experience which is a brochure that features over 90 hotels and apartments throughout the GCC, the worldwide stopover programme - a value for money adaptable stopover option with pre-book transfers and car hire.