Caribbean Airlines says its investment in Canadian Michael DiLollo as its CEO "is for the purpose of equipping the airline with the most suitable leadership to meet and overcome these challenges."
The airline, responding to recent statements about the appointment of DiLollo and his monthly salary, said one of the most important strategic initiatives it needed to undertake was to recruit a Chief Executive Officer with leadership skills and industry experience coupled with objectivity and an independent approach, to transition the organisation to meet the significant challenges of a hyper-competitive market-place now being dominated by low cost carriers.
"The board of directors conducted a robust recruitment and due diligence process which was both thorough and transparent, to invite applications both internationally and locally for the vacancy, with Mr DiLollo emerging as the successful candidate. Both the process of recruitment and the determination of the appropriate compensation were guided by independent consultants.
"The salary offered to Mr DiLollo matched industry standards for an airline of similar size, as well as salaries of former CEO's who managed the airline when it was a significantly smaller and less complicated operation without the proliferation of low-cost carrier competition which exists today," the airline said in a statement.
"Since coming on board, the CEO and his management team has begun the process of managing the complex relationships and demands of various stakeholder groups as well as the refinement of the business model agreed on by the Board with a view to ensuring the financial viability of the airline in the shortest possible time."