Air
Air
The Seychelles Government itself is currently maintaining an unsustainable debt portfolio. It has sought IMF Administration and signed a second IMF Standby Arrangement for US$ 34 Million which will last for another 3 years. Successive IMF Administration Standby Arrangements are very likely for a number of years, if not decades. The World Bank recently assisted Government of Seychelles with a US$ 9 Million loan assistance program, the repayment of which will take 25 years.
Air Seychelles for its part, secured three additional planes this year while the world went into a deep recession and air travel dropped to all time lows over -20% as the European industrial output dropped by -15.75% this year.
As Europe’s recession deepens, trips to long haul destinations such as the
What airline company in the world today can afford to lease planes and park them for a year, without placing them into a proper business plan of operation? How can any CEO or Chairman of any airline company justify this type of fat riddled business program?
21 Century Business Models
Business today is about maximizing our resources and putting them in play. As a business gets maximum output from its assets, it spreads its cost base and becomes more profitable. These planes need to be up in the air, flying with passengers.
But Colonel David Savy has told us that: “Air
What is The Money For?
The money is not for new planes. It is not for parts to keep the old Boeing 767-200 safe. It is not for marketing to put passengers on board and keep the passenger loads above 75%. The money is to be used to:
1. Reconfigure and redesign a business class seating arrangement. This is when business travellers are travelling now at an all time low, causing airline companies like British Airways that rely on that market segment for its profits to suffer a 240 Million Pound Sterling loss this year. Unprecedented in recent history.
Without regard for market forces and market indicators, Colonel Savy loves to spend money on refurbishments. Remember the renovation of the new office in
Remember the US$ 1Million spent on the water fountains and bamboo wall paper for the VIP Lounge at the
2. The money is also to be used for completing a building at the Cargo Terminal that Colonel Savy is supposed to use as his office in the future and terminate a lease from his wife’s family in town. Why does not Air
The reason why Air
Colonel Savy says to us that the Government of Seychelles cannot take any loans as it is a requirement of the IMF that they must have loans approved by IMF before proceeding.
Hence, the Parti Le Pep (P.P.) Government weasels around this condition, and drafts an appropriation bill, in the form of a supplementary budget for SCR 230 Million, and gives Air Seychelles SCR 30 Million to meet its overdraft requirements. Wise communist business style indeed!
What Is Wrong With Pierre Laporte’ Advice?
Why does Pierre Laporte tell us to go get loans from the banks to stimulate the economy and Air
The Seychelles Rupee gained 70% on the US Dollar in 2009. This is such an amazing feat that Bloomberg and Reuters are now comparing the Seychelles Rupee to the US Dollar regularly, and also to the Brazilian-Real and Mexican-Peso. But they also know our credit rating is SD (Selective Default) and that our economy collapsed last year. They are poking fun at Pierre Laporte and his funny rates. They just do not mention his name. But we do.
How To Save Air
The best way to save Air
How can Air
The airline business is not some mysterious business or more complicated than running a Tata bus line, except the engineering is aerospace not automotive. That is done mainly overseas. But the business thinking, the ideas, that make things happen for us all, come from the brain, not from the family bloodline.
This is the fundamental error Albert Rene and James Michel made when they argued against Mancham building the international airport. Simply put, Mancham was visionary while the other two were busy coming up with communist ideas and taking over the country by force.
Mancham did not put his family in place to run the show at the airport. He put the best man. People of
Be Prepared For Worse
With Etihad Airlines from
Michel’s Promises Will Finish Air
Meanwhile, President Michel is asking so much from these people in UAE in the form of favours, and giving land for one rupee in return. But Air
Air
Michel will allow Air Seychelles to lose market share in exchange for some crazy “Don Quixote” windmills that will never work in Seychelles, a little renovation at the hospital which our own Government should have funded had we planned and budgeted properly instead of doling out Social Security money to win elections or build District Administration buildings that are never used or create prawn and orchid farms that cost us millions of dollars that we did not have. Desalination plants were just the cream on top of the already bankrupt cake.
Is Air
Whether Air
New Opportunities
The Airport will still have to function, and a professional ground crew operations company hopefully not managed by Savy will still have to hire you in that sector. Those engineers that have trained and under the constraints we operate under will also find employment in aerospace engineering in
Remember, at one point we had British Airways and Air France flying Boeing 747s twice a week to
Most airlines literally took off never to return because Albert Rene promised them that they could repatriate their earnings in foreign exchange and of course this never happened. So the key is in marketing the
More airlines will mean more tourists to
Time To Retrain Skills
If you do not want to be based elsewhere, this is the time to stop complaining and retrain your skills. But get moving fast. In this economic downturn you can expect the worse. If you do not retrain your skills, do not blame Colonel Savy for that. Blame yourself. The downturn will last for many years, unlike Party Le Pep (P.P.) would have you believe. It is over and things will get better. Do not get caught in P.P.’s trap. And let Michel promote Savy to a Brigadier in his armed forces if he wants.
Downturn Will Last Many Years. Is Air
“Entre Nous”, in
P.P. will revamp the tax system according to World Bank and IMF instructions. They will drop business tax from 40% to 20%. While this is good, it won’t be enough to generate new business, create employment let alone create enough wealth for our country.
Without new businesses to generate enough taxes to run the country, the Government will continue to tax the same businesses and the tourism industry to death. As we are taxed to death, naturally, we will die.
What is needed in
This will allow us to pay down debts in reasonable time. P.P. does not have an answer for this in 2009 let alone 2010. So do not be fooled by optimists that believe their time on earth is shrouded in an inherent right to succeed in this economic atmosphere. We are in for a real down turn in 2010 and beyond.
It is true some market segments will do better like those that provide essential goods for living at better prices than the Ramadoss milk and juice factory, or STC for rice, etc.... but that is not a growth sector that creates wealth. It is only a survival sector. This will not create new jobs. In fact the poorly structured businesses will fail, because their model for growth is outdated and belongs to the Rene-Michel communist one party state era.
As this sector becomes the only viable sector, more and more people will join it and it will become more competitive. Large companies built on the communist model of business will of course fail. Do not hold your breath to think this will not happen. It is already happening around us. Reminds one of the NYS failure!
Hotel Industry Needs You Badly
Today, our hotel industry has at least 500 slots available for guest hostesses, front desk assistants, managers, and so forth. Your experience in dealing with passengers is a 100% boost to you getting a job. With that experience and corresponding dedication to the industry, your pay will be increased as well. With you in the industry, we will not have Filipinos or Mauritians greeting our tourists when they arrive at our hotel resorts.
A New Beginning For Us
All is not lost. Think of it as a new beginning. In life, we all have new beginnings. As Christians, the power of renewal in our hearts and minds keeps us fresh as we face the struggles of life and the great challenges the evils of Communism and cronyism bring into our lives.
Finally, at Air
When the domino falls, do not blame us who expressed opinions over the domino and exposed the truth. We were not the CEO or Chairman and we are not on those Boards either. Be brave and blame yourselves, blame the moderate communists. Because all of us who speak the truth and expose the evil in our country pay for our flights from our own pockets and do not fly Air Seychelles for free. And we do not send our furniture and private goods via free Air
May God Bless
I'm positively impressed Chris! This is the kind of journalism I've been missing. I will get back later with comments. Keep up the good work.
ReplyDeletePatrick X
I enjoyed this article and find the ideas are excellent and paint a bright future for the poor staff of Air Seychelles.
ReplyDeleteI would recommend that Government have a national debate on the future of Air Seychelles and start listening to some voices of reason instead of listening to the likes of David Savy, Glenny Savy and Maurice Loustau Lalanne who used to run the airline at some point I believe. Kakaria is not a good choice as Albert Rene fired himm from the post of Air Seychelles CEO if I'm not mistaken, although I'm not sure why. Conrad Benoiton was also there to, so it seems to me that this era is coming to an end.
But one thing is definitely clear in all the arguments is that David Savy should resign from his post as Chairman of the Board. He has simply not done his job and planning and execution have been extremely poor and detrimental to the airline and our national pride.
This is a real opportunity for President James Michel to start cleaning his own house and show some leadership that is badly needed in his Government. He should quietly ask David to resign from the airline's board and save Savy some embarrassment. While he is at it, Michel should also get brother Glenny to resign from IDC to save some more embarrassment for his administration over the misuse of state funds and abuse of power let alone the Farquhar hotel funds that have disappeared into some Mauritius bank accounts in collusion with MCB directors. Michel should then get Francis Savy to return the lease of St. Anne back to the Government for one rupee and the land would then be returned to the people of Seychelles. If Beachcomber or other investors want to develop St. Anne, then the land will be leased out properly and the annual lease payments can be paid directly into the Central Bank's account instead of Savy's personal account.
I assure you that many in Seychelles would see this as a clear sign that Michel is making important correct Presidential (CEO-type) decisions rather than political ones. In fact, he would get political mileage from the tourism and business leaders of this country.
I believe Gill said in his speech that there are about 15 or 20 people in Seychelles that have ruined our country by pilfering its assets. Mr. Rene and his step sons are part of that clique and it is time to let bygones be bygones. If the country is to move forward, it must be done with new leaders who truly have Seychelles at heart instead of their own pockets. But the first step is to get rid of the bad apples who have ruined this country, and only Michel or the Attorney General have the power to make this happen. Michel can do it the smart way while the AG would have to prosecute; and I seriously doubt that Govinden has the guts to make such an important move for our country since he takes his orders from Michel and ex-President Rene.
Time for James Michel to "leve debrouye" and make some sensible decisions. After all, he told us to judge him by his actions. And God knows that we need action today. Not tomorrow.
The case is fairly clear and we can all see that indeed Air Seychelles is in trouble and even our prezident sees it and knows it very well. In fact this is a huge dilema for the PL, both towards the people and towards their true leader France Albert Rene who makes them shiver like little boys about to be punished by the brotherhood of the old days.
ReplyDeleteDenying David Savy the bailout he needs to save his backside will undoubtedly make James Michel unpopular amongst the Savy clan and their protector, not to mention the 800 or so employees of Air Seychelles + their families and most probably friends. A decline of popularism that could cost him the next election if by a miracle the SNP and DP could get on their feet and unite.
The Air Seychelles dilema to James Michel reminds me of a story I used to hear as a child. It was about an early Seychellois who was from a fine family, but was not the most educated one of his kin. One day he was invited to a wedding at his uncle's house and kat-kat banan was served. Being rather ill-mannered and "voras" he filled up his plate and took a spoonful of the servings forgetting that it was still hot coming straight from the pot. Suddenly with his mouth full of hot food he had the make the quick choice of either spitting it all back to the plate, a rather bad mannered thing to do, or swallowing it hot and burning his intestines. After a split second he decided to save face by looking up in the ceiling, opening his mouth and say "Lakaz tonton y hoooooooooooo", breathing out the "hooooo" This is exactly what James Michel is doing by bailing out Air Seychelles, i.e saving face, but scorching his mouth badly. Either way he's doomed to have to swallow a pill the size and consistence of a "galett" to recover. And that without breaking it in bits.
As to David Savy, I can excuse the fellow for being of the type who lives by procedures and checklists as all pilots do(yes, I know a few).
Unfortunately for David he's been flying on auto-pilot for so long that he no longer remembers how to fly-by-wire as he did when he took his first flying lessons. This was not helped by the fact that both take off and landings with him behind hte controls of Air Seychelles were done in a flight simulator with perfect weather and flight conditions. The aircraft never ran out of fuel and if it did, the engines still kept running as the tanks were filled in automatically. Like many Seychellois, David Savy had become lazy as he was raised with subsidies and ran a company subsidised to the tip of the tail.
If David Savy or any of the boys for that matter ran a company in a free market they would never make it through the first year, let alone ever make a profit as they would fail just like their stepfather failed the nation he siezed after losing an election and not being able to live with it.
David Savy has proved what he is good at by getting a commercial pilot's licence. Running an airline he has proved that he is useless, but can naturally blame the global financial crisis the same way the PL blame the Lehman Brothers for their failure to have intelligence enough to realize that loans need to be repaid. With interest.
I am not surprized that James Michel had neither the wits or courage to say no to David Savy's role play of Olive Twist when he went to State House with an empty bowl of soup and said "Please Sir, may I have some more?" and got more before he could say "or else i'll tell my stepfather".
And he got more as our reserve consisting of recently loaned money becomes less and less.
Patrick X
Nice article that hits to the point some of the main issues facing HM and the Seychelles as a whole.
ReplyDeleteOther facts which that have helped prevent the development and survival of the airline includes:
- De-motivated and underpaid staff: Many highly skilled and professional staff, and not only cabin crews or pilots, are seeking employment elsewhere. This is can be seen locally, or even overseas to other airlines such as Emirates, Etihad and to a greater extend Qatar Airways. Staff who put their proposals forward regarding salary and career advancement within the company are frowned upon. How can one support an airline when the airline doesn’t support you. This is common sense and Business 101. How far would the airline be today, had all that training and experience not gone to more professional pastures?
- Why expand when you cannot even consolidate what you have? Ok, the climate that the aviation industry was under the last year, made it viable to lease an aircraft rather than purchase. But why lease it, when you aren’t doing anything with it? Unless the business plan is to have something nice for (depleting) tourists to look at when they touch down at the airport.
- Expertise: Do you know that the more senior roles within the company are not given to Seychellois? Of course experience is a factor. However, so is understudying these “experts”. This is not done to a great extent. So if HM is to hire professionals from outside, why does it not hire real professionals instead of those that come for a fat pay day and leave in 2 yrs without sharing any knowledge? Then the whole process is done again. All the while, those who want to learn and prove themselves are left in the cold.
- Old dogs: There is a saying you can’t teach old dogs, new tricks. Well, no matter how nice or great or connected or even “princely” they are, the old dogs have to go. They may think they are other-worldly, but in my book, they are a laughing stock and a mockery of being a Seychellois. Are we actually serious as a Nation, in saying that a pilot, a cousin who has not proven himself as a statesman and is only where he is because of his communist father, a lady who is where she is because of her marriage to a minister, a member of a the Savy/Adam conglomerate, a lady of fashion who got kicked out of office , a lady who can’t stop talking and a gentlemen who works for a previous board member, are the ones to save HM? Are we actually serious?! Please tell me this is a bad dream. Oh wait a minute, it’s not. It’s the Seychelles dream.
To be honest I am ashamed and embarrassed that I, as a citizen have to write about the above. These are things that just should not be happening. How can people in power sleep at night knowing that they are effecting not only HM, but the people of Seychelles. They have a duty, a conscience and a higher order than us, that they will one day have to answer to. In the mean time, I salute and support people like Mr. Gill and those many other Seychellois who are making sacrifices, who have principles and honor and true love for their country.
The people in Power have neither duty nor conscience to the people of Seychelles, only to their own clique!
ReplyDeleteMore like their own pockets.
ReplyDeletePatrick X
Hello All,
ReplyDeleteThere is no time for national debate on this dead issue.
The People need results.
We need a program to exit and cut loss that is sinking the Government into deeper debts and exposure.
First Measure- Sack the Board. Implant new Board of key players from Business that are serious.
Second Measure -Keep D. Savy for 6 months as transition. He is held to full disclosure in transition. If he fully discloses and cooperates we can conside rimmunity based on the level of cooperation. Simple. No fuss.
Third Measure- Send the Mauritian CEO home. Waste of money.Cars and rent of house can go to a Seychellois.
Fourth Measure- Cut all requests for free tickets, and free cargo delivery on HM.
Fifth Measure- imlement profit sharing program with cabin crew and all other HM staff. 5% of all profits go back to staff. Give them stock options to repurchase and to reinvest in company at 1.0 -2.0 to keep money coming back into operation for a period of years.
This will change the mind set over night as needed if HM is to survive the next five (5) years. They will stop breaking the seats and eating the meals and stashing the booze.
Sixth Measure- Drop prices on inter island flights. On this route, which use to be the most profitable is now competing with boats. Drive the boats pricing down.
Seventh Measure- Implement a frequent flyer program and push corporate loyalty for workers travelling on domestic and international to preserve market share as Ethid and Emirates, Qatar come in to squeeze Air Seychelles to death.
Example. I send over 15 workers home every year. I travel at least 6 times a year and three times with family. I use Emirates and Qatar mostly because they cost less and safer from incidents experienced.
Air Seychelles could compete for that business if it was not lazy. Knock on some doors for Christ sake. This is your home turf.
Make deals to keep companies loyal. Stop messing about. You are in business not in patronizing the Chairamn with a glorified employment opportunity.
Eight Measure- Cut all the fancy money draing rentals and scams. I understand there are many.
Ninth Measure- Return the 767-200's in 3 month intervals. Select new planes to replace as needed. These planes are used for cargo not passengers. A complete joke.
If Ephelia needs planes to fill its hotel, tell Guy Adam to go into the plane business. If he can build tankers that lose money, he can lease a plane that loses money. Why does Air Seychelles and People of Seychelles have to carry that load for a private business.
Tenth Measure- Call for audit of Air Seychelles, make people pay for what has been taken wrongfully out of the ordinary course of business. I am certain we will find at least 5 years of money there for the airline. If they lost the money, make them sign promisory notes.Place them on installments.
These are ideas off my head, without getting the inside picture of the mess.
Let's get serious Michel. You are a President, not a porcelan!
Christopher Gill
Again you hit the nail on the head Mr. Gill. This ties in well with my previous comments above about the board and staff leaving Seychelles.
ReplyDeleteOther commercial / HR points to consider:
- Sales strategy: Instead of working out prices based on the whims of the Commercial Dept and other outside influences ( because we all know it’s there and who benefits..remember flights to Maldives anyone???) , why not have proper incentive schemes for the agents, depending on their performance in a budget year. Anyone who is in the travel industry knows that the agents and TO’s are the key. Incentivize them! Promotions are great but let’s target the decision influencers as well. I doubt if this is going on, and if it is, the process is wrong. Otherwise we would have seen results, instead of the yearly 100k-130K average that Seychelles keeps getting.
Is Air Sey looking in the right places and mediums for business? Look at the website as an example..it’s old and outdated. It screams for help! Too bad the French consultant who did it seems not to care. But I hear that they are doing a new one. Great news! 5 years later!!! Where is the commercial drive!? It’s a fast paced industry people! Have they done a proper market analysis? Are they using the right aircrafts, seat configuration, pricing structure, marketing or even in-flight product enhancement? If not and the heat is too hot, then they best get outa the kitchen. Why invest in capital expenses when your sales strategy needs more of an over-haul?
- Staff development: Fine they have a training centre, but what do the staff do after that? Is there a rotation of duties or structured development- year in year out? Or do they expect the staff to grow old gracefully? Are salaries really appraised or are staff lead into believing that there is a light at the end of the tunnel, only to get the door shut in their face? Does this encourage staff to be part of a team? If the company was earning a profit the last 9 years, why not give some back to all the staff?? Again Business 101. Hello HR?! Is anyone home????
- Business plan: What is the future strategy of the airline?? Or do they fly the same routes year in year out, same price, same AGM, same blood , same old sh*t different day?
At the end of the day, it is our national carrier and it effects us all in one way or another.
Get people in there that know what they are doing and have the integrity to make things happen for Seychelles.
Make us proud again.
I think there’s been enough debate.
It’s time for serious action.
Not to mention the agents' comission whic recently was reduced to a minimum. And they wonder why fewer want to fly to Seychelles? It is common sense that agents promote those who give best profit, not those with the nicest beaches. Why should an agent promote Seychelles when he/she makes more profit from a similar sale going to let's say Mauritius or even Maldives? wake up David savy and get your head out of wherever it's been JAMmed lately.
ReplyDeleteNo action equals failure.
ReplyDeleteAction equals a chance for success.
More the the same action will give you more of the same results, if you are lucky.
Usually you get less of good results and more of bad results, if you do not adjust to a deep recession market.
Christopher Gill
This blog opens new avenues for those with sewn mouths and chained spirits. I hope issues like the so called 'reforms' in education will soon be tackled, as i am confident many of us teachers would use this 'forum' to voice our discontentment at a government which allows those with power to supposedly effect change to just grow fat and grow indifferent to those they left behind.When called upon to swadizan 'share their skills' and 'give back' they become sarcastic and rude, believing themselves to be better than the hundreds of teaching staff who toil day in and day out to hold together a fragmenting illusion of 'all is well'. Our schools are in ruins, our children have no hopes, our teachers are dying from stress and fatigue, while some just look down on us and say that 'lo size lapey nwa get ladan 2011'. I have more to say, like a pent-up ball of anger ready to explode. The walls of the SPUP-SPPF-PP dam/desalination plant?/ cannot hold back this rage, this awareness. I am an educated person, and as such feel the need to ensure what i see is seen by more than myself.
ReplyDeleteThank You for this opportunity.
Ti Maxim
I really feel sorry for the cabin crews. They live off euro 10.00 per meal overseas. What kind of a joke is that?
ReplyDeleteDoes David Savy live off euro 10.00 per meal when he is overseas?
Why the double standard Dede? Are some kond of masicist?
Treat our crew with dignity, since they front and cover up all your fiascos at HM.
Treat everyone at Air Seychelles with dignity and honesty, because without one part , there is no whole.
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