After two years with Jet Airways (India) Ltd, the second in turning around what was regarded as one of India’s most troubled airlines, Air Sahara (now JetLite), Garry Robert Kingshott will move on to the Philippines after May to head another low-cost carrier, Cebu Pacific. In an interview at JetLite’s office overlooking the Delhi airport, the CEO of JetLite tells Mint why he decided to move on and the way forward for the airline. Edited excerpts:
What made you quit even though you haven’t yet fully turned around JetLite? By when do you think JetLite will be able to break even and also, when will it become profitable?
There is absolutely no doubt that the work here is not finished and it won’t be for two-three more years. I think what we have done now in the last 10 months is that we have taken an airline that would very easily have collapsed, to an airline that is now operating in a very stable environment. The business is now stable. The staff has settled down, we are in the middle of just finishing off (sorting out the issue of pilots’ remuneration). That was a key issue. There are two more aircraft that have to come up. I think I would still be here to see those two aircraft fly. So, the task in a way changes. It’s now about taking the airline on a growth path and continuing to make incremental changes. Now, I would have happily continued to do that. However, I got an offer I simply could not refuse. And it was a very attractive proposition. And I chose to accept it.
Moving on: Jetlite CEO Garry Robert Kingshott.
I have consistently said we will be able to break even once all planes are flying. We are in the process of preparing our 2008-09 budget and would hope to show a small profit.
You weren’t asked to stay back by Naresh Goyal who brought you here?
I think he knew (that there would not be a change of mind)… It wasn’t just about the money. It was a whole series of things. Working environment, stock options (in the new airline). In this sort of business you get almost one call a week, most of which you are not interested in and it takes only 30 seconds to say no, but this is the one where everything felt right about it.
The airline is called Cebu Pacific. In fact what we are doing here (JetLite) has actually already been done there. This is a 10-12 years old airline, but two years ago it completely re-fleeted, changed its model from full-service carrier flying DC-9s and Boeing 757s to brand new fleet of A320s and switched business model to a low-cost carrier and they have gone from carrying two million to five million passengers last year and are targeting seven million for this year. The oldest aircraft they have is 21 months old. So... they are profitable, have a 43% market share—and are at a point in time where they need a CEO.