Top travel talk delegates learn Gulf Air's change secrets

Addressing senior delegates from all sectors of the travel industry on the subject of corporate change he discussed the unique approach adopted at Gulf Air to return the airline from loss to sustainable profitability over a period of three years.

"In response to a 2002-mandate from our shareholders and the Board to transform Gulf Air into a commercially successful world class airline, we developed Project Falcon a three year restructuring programme," he explained.

"Sustainable corporate change envisaged in this programme is not an over night process. It is more like a journey in which successive steps form a platform for the creation of a robust, but flexible organisation that can withstand and respond to the dynamics of the market."

He went on to say: "It cannot be achieved by cutbacks and cost cutting alone. While fiscal discipline and good corporate governance are vital, they are not sufficient to ensure long term continuity and viability; to guarantee the employment of the thousands of people who work in the airline, or the airline's ability to contribute meaningfully to the regional economies."

Innovation, confidence and boldness are equally essential hallmarks of successful change. Underpinning these elements is investment in the core business - whether in the brand, the people, products and services or the infrastructure.

On the eve of the WTTC summit in New Delhi where he will participate in a debate on synergies in the travel and tourism industry, he also stressed the importance and logic of working with strategic partners and alliances to achieve economies of scale, cost savings and greater effectiveness in the market.

Mr. Hogan's tour in Germany also included the signing in Hamburg of a USD138 million agreement with Lufthansa Technik for the management and maintenance of the airline's rotable components.