The transition from relative obscurity to the subject of national attention is usually the fate of politicians, heroes or criminals. George Nicholas, son of Syrian businessman Issa Nicholas, doesn't fall into any of these categories. You won't believe it, though, given the public introduction he's had. Since his appointment as the chairman of Caribbean Airlines Ltd (CAL), he's engaged in a public spat with line Works and Transport Minister Jack Warner, garnered more newspaper headlines than any other government-appointed chairman, sparked a national conversation on corporate governance, had his decision reviewed by aviation expert John Dunne, made-up with Warner under the media's glare and visited Jamaica for the first time.
All in the space of two months. It's what you'd expect from a man described as "vibrant" by CAL director, Allan Clovis. Under the People's Partnership administration, Nicholas was first selected as chairman of CL Financial, a position which was later given to former finance minister, Gerald Yetming. While Nicholas confirmed the offer, he courteously declined to give current to that line of questioning. Instead, he stated simply, when he offered himself for national service, he allowed his selection to be based on where his skill set most fit the job requirements. "It was a Kennedyesque moment for me, to be able to now do for my country," he told the Business Guardian. Nicholas' scepticism of the media was evident in this exclusive interview with the Business Guardian: his smiles were few, his words carefully selected and he didn't veer off the topic of CAL.
Asked if he's slayed the sceptics now that all's well with him and Warner, Nicholas replied: "Mr Warner and I speak everyday. I have the greatest respect for him." Nicholas first gained notoriety when he became chairman of Mora Ven Holdings Ltd, a firm founded by Dr Krishna Persad. He pointed out that it was a costly case and the longest running one in the Commonwealth. The matter is still before the courts. Asked what he's learnt from that situation, Nicholas replied: "I've learnt to do things right. If you don't know something, find people who know how to do it."
He admitted to limited aviation experience, but likens the management of the airline industry to that of the tourism sector; the end-game is to attract people to use the airline, a feat no different to attracting visitors to a country. And that's where his expertise lies. Nicholas, who's in his early 40s, earned his bachelor of arts degree at the University of Western Ontario, went through general management training from Holiday Inn and Renaissance hotels. He's a preacher when it comes to building capacity and reckons once the art of customer service is mastered, the Caribbean Airlines brand will continue to thrive. Nicholas pointed out that his technical team has carte blanche to do what is right for the company. Far from micro-managing, Nicholas is setting his agenda for when his internationally-recruited chief executive joins the CAL team in February.
For now, Nicholas says he has a think-tank team, which deals with issues as they come and finds the best manageable solution. On the important issue of the airline's fuel hedge, Nicholas expressed confidence the Government would renew it for one year. Nicholas said a fuel hedge was normal in the aviation industry and CAL's records show that this hedge was offered by Citibank to the previous Arthur Lok Jack-chaired board.
CAL's fuel hedge was set at US$50: if oil prices went up, the Government committed to meeting the cost.
The hedge has been criticised as a subsidy given by the former PNM administration. Questioned as to why the Government should seek to renew a hedge, which they have not budgeted for, Nicholas replied that CAL serves all the other sectors of the economy, in particular, the tourism sector, which has a high multiplier effect on other sectors. Nicholas expects the hedge to be retroactive-it expired on December 31, 2010-and help meet the airline's demands, given that it will run 99 flights for the Carnival period.
The Air Jamaica brand
Nicholas' vision for the airline is quite different from the role originally envisaged by former prime minister Patrick Manning for CAL; it was intended to be a regional airline of the Caribbean with one distinct brand.
In stamping his footprint on the tenure, Nicholas has chosen to retain the Air Jamaica (AJ) brand, a decision the former board had decided against. "There's strong equity in that name." Nicholas explained that the AJ brand resonated with people, much the same way the BWIA brand of the 1970s resonated with the people who travelled on it.
"There's a line between AJ and Jamaica. You don't know where the line stops between the two. The passion and zeal are incredible." For this reason, the new CAL board was loathe to part with it. Nicholas explained that CAL will lease six Boeing 737-800 jets at a cost of $300,000 for its arrangement with AJ. AJ will not just offer domestic flights from Kingston to Montego Bay, but come July, it will fly to Heathrow, London.
Nicholas said the board has opted to retain two of AJ's vice presidents, that of legal and human resources, to complement CAL's slate of VPs. His aim is to bring CAL's standards on par with British Airways. In another bold move, Nicholas doesn't believe that acquiring Liat to help form a regional airline is the way to go. He explained that CAL had acquired nine ATR's and could probably manage the endeavour on its own. CAL, he said, already manages some of the routes on its own.