20/06/2021
An excerpt from our monthly People-in-Travel report. As this is a subscription report, the following items are not from the current edition.
2020 Review
CEO/head moves
[] Air heads.
-Lufthansa. New CEOs at Lufthansa Group (LHG) airlines:
[] Peter Ge**er, 56, at Brussels, due to start this March. He has been chairman of Lufthansa Cargo Since 2014, having joined LHG in 1992.
[] Dieter Vranckx, 47, at Swiss, due to start this month. Was CEO at Brussels. Succeeds Thomas Kluhr, 58, who resigned; he had been Swiss CEO since 2016, and with LHG for 30 years. Vranckx has been with LHG since 2001. In 2018, he joined Brussels as CFO, and then became CEO only in January this year.
-ICAG. Internal changes at ICAG*:
[] Willie Walsh left as ICAG’s CEO as planned after a 6-month covid-related delay - even if covid hasn’t left. Luis Gallego took over; he was chairman and CEO at Iberia.
[] Alex Cruz left as chief executive at British Airways, partly because he did not cut enough costs. Sean Doyle took over; he was chairman and chief executive at Aer Lingus. He worked at BA for 20 years before moving to head Aer Lingus two years ago.
[] Donal Moriarty became interim chief executive at Aer Lingus; he was the airline’s chief corporate affairs officer.
*ICAG = International Consolidated Airlines Group; AerLingus British Iberia Level Vueling, others.
-Emirates. Tim Clark, president of the airline Emirates, was due to leave last June. He didn’t, and is still there - blaming covid, as ICAG’s Walsh, for the delay.
In his 35 years with the airline he has not groomed a successor. His predecessor (and the creator of the airline’s businessplan, what we call a one-stop-shop), the late Maurice Flanagan, groomed Clark.
-Others.
-Calin Rovinescu is due to retire as Air Canada CEO next month; he has been in the job for 12 years. Michael Rousseau, deputy CEO and CFO, is due to take over.
-Brad Tilden is due to retire as CEO of the Alaska Air group this March. Ben Minicucci, president of Alaska the airline, is due to succeed him. Minicucci was CEO of Virgin America, which the Alaska group bought in 2016.
We think Alaska made a mistake in shutting down the Virgin brand (in 2018) - particularly as the name ‘Alaska’ will always be related to that state, and not to the US. And the VA name was clearly a US-wide brand.
-Ball dropped. A restructured Alitalia kicked out CEO Cramer Ball, and named Fabio Lazzerini to replace him. He worked for Emirates in Italy 2013-7, and then became commercial director at Alitalia. The new chairman is Francesco Caio, who was CEO at state-owned Poste Italiane, one of the shareholders of the new Alitalia.
We believe Lazzerini will be removed within four years - for not making the airline profitable. Likewise his replacement.
-Enrique Cueto, CEO of Latam Airlines Group, left. Roberto Alvo, chief commercial officer, took over. Latam is a Chile-based company owning shares in six airlines in South America.
-Qantas merged its domestic and international business units. Andrew David, CEO Domestic got the combined job. Tino La Spina, CEO International, got fired.
-Saudia’s COO Ibrahim Koshy became CEO, replacing Jaan Albrecht, who took the job in 2016.
-Campbell Wilson rejoined Singapore Airlines’ no-frills-airline Scoot as CEO. He was Scoot’s founding CEO over 2012-16, then an SVP at Singapore Airlines. He replaced Lee Lik Hsin, who moved back to SIA as an EVP. As it was Lee who replaced Wilson, he was presumably ‘fired’ from the Scoot job. But this being Singapore, his new SIA job was presented as a promotion.
-United Airlines CEO Oscar Munoz seems to have been fired. He was in charge when the denied-boarding-passenger-dragging incident took place, but who also had medical problems. He was named executive chairman until this May. Taking over as CEO was Scott Kirby. Chairman Jane Garvey retired.
-Jayne Hrdlicka became CEO/MD of the Virgin Australia group, succeeding Paul Scurrah, who took the job only in March 2019, but these moves follow the sale of the VA group to Bain Capital. A US national, Hrdlicka moved to Australia in 1994, and was CEO of rival Qantas’s Jetstar 2012-18.
Even without the problems of covid, her task would be tough. We think Bain has made a strategic mistake in buying Virgin, but it will be Hrdlicka to prove us right or wrong.
[] Hotel heads.
-Kempinski. Here we go (and come) again. Kempinski Hotels* has made frequent CEO changes. Recent ones:
-Last month Bernold Schroeder was named interim chairman/CEO. He joined Kempinski in 2017, and was Europe COO. Before that, he was CEO at Singapore’s Pan Pacific Hotels.
-He replaced Martin Smura, who joined only in mid-2019.
-For three years before Smura, CEO was Markus Semer, who resigned at the same time as the company’s CFO.
-Alejandro Bernabe was CEO 2014-6, but left in troubled circumstances, see next.
-In 2014 CEO Reto Wittwer left after 19 years. Over 2015/6 there was a scandal where Kempinski legally accused Wittwer as having moved about US$5mn out of the company - presumably for self-gain. That ended with an out-of-court settlement where Kempinski appeared to retract its accusations. Bernabe, who had taken over from Wittwer, was the ‘public face’ of the accusations, and thus left when those accusations fizzled.
*Kempinski describes itself as Europe’s oldest hotel company, but for 20 years primarily non-European companies have owned it. Currently, this is now effectively Thailand’s king (via the country’s Crown Property Bureau, nominally state owned but in 2020 the king took control of the CPB’s US$50bn assets), but also 70% by the family of Kempinski’s chairman, Abdulla Saif, formerly Bahrain's minister of finance. In an earlier phase, Thailand’s Dusit Hotels owned 50% and managed the group.
-Nepotism at Marriott, contd. Marriott Hotels’ chairman Bill Marriott, 88, due to become ‘chairman emeritus’ in 2022 and replaced by his son, David Marriott, president of the company’s US operations.
We find it surprising that such a big company (c7000 hotels), with its stock quoted on the US Nasdaq stock exchange, continues nepotism*. We are also surprised that shareholders agree to this - although Arne Sorenson will apparently continue as CEO, and the position of chairman is usually operationally less important than that of CEO.
*Wikipedia: The company was founded in 1927 by John and Alice Marriott; their son Bill became CEO in 1972 and chairman in 1985. He appointed Sorenson as CEO in 2012.
-Others.
-Easy Hotel* names Francois Bacchetta as CEO, replacing Guy Parsons. Bacchetta was with Easyjet for 15 years, lastly as country director France, Italy.
*New majority owners from late-2019 were Icamap, a UK-based real-estate fund-manager, and Ivanhoe, a UK company owned by Quebec’s pension company, CDPQ (Caisse de Depot et Placement du Quebec). These two control about 69%, founder Stelios Haji-Ioannou (via his Easy Group) 28%, others 3%.
-Michael Wale, CEO of Kerzner International* since 2018, joined the KI board. Taking over as CEO was Philippe Zuber, who had been COO after joining KI in 2015. Zuber is credited with ‘launching the evolution’ of an O&O division. As it is not possible to launch an evolution, we presume Zuber simply launched the division.
*Owns the Atlantis and One&Only resort brands, neither of which is successful.
-Jim Murren, MGM Resorts chairman/CEO, left after 22 years, 12 as CEO.
-Timo Gruenert took over from Frank Marrenbach as CEO of Germany’s Oetker hotel group. Gruenert started his career at Oetker in 2005, and became Co-MD and CFO in 2009. Oetker’s growth has been slow - from a start of four in 2009 to nine in 2014 until now.
-Peter Gowers, CEO of Travelodge UK, left; he had been CEO since 2013. Taking over was Craig Bonnar, previously COO.
[] Industry heads.
-The Expedia* Group named Peter Kern its new CEO - on the board since 2005 and vice chairman since 2018. EG’s previous CEO Mark Okerstrom resigned late 2019 following disagreements with chairman Barry Diller and the board on strategy.
*Wikipedia lists the Expedia Group as a US-based OTA (online travel agency). Its brands are Car Rentals, Expedia, Home Away, Hotels, Hotwire, Orbitz, Travelocity, Trivago, Vrbo.
-Others.
-Matt Stoeckel was due to leave Tourism Fiji, the islands’ DMO, last month; he joined as CEO in June 2016.
-Yann Leriche new CEO of Getlink*. He was CEO of Transdev North America, a transport operator, which he joined in 2008. He is French, an important qualification for this job. He replaced Jacques Gounon, 68, president since 2007 and who is now chairman.
*Inexplicable name for the France-based company that operates the Eurotunnel between France and the UK. It was Groupe Eurotunnel.
-Scott Wilson new president of Sabre* Hospitality Solutions; he was chief commercial officer at Great Wolf Resorts*.
*Notes:
-Sabre is a US-based software and technology company for the travel business.
-GWR is a US-based operator of 17 indoor water parks, most with accommodation attached.
[] Officialdom heads.
-IATA. Alexandre de Juniac, IATA* DG (similar to a CEO) due to leave this March. He has been DG since 2016; before he headed Air France-KLM. Due to take over is Willie Walsh, previously ICAG* CEO. Also, Robin Hayes, CEO of JetBlue (heading it since 2014), to chairman - a largely honorific post. His term will run until 2022. He takes over from Carsten Spohr, CEO of Lufthansa. Due to take over from Hayes in 2022 until 2023 is Rickard Gustafson, CEO of the SAS Group.
*Notes:
-IATA = International Air Transport Association. Switzerland-based airlines’ trade body.
-ICAG = London/Madrid-based International Consolidated Airlines Group. Airlines include AerLingus, British, Iberia, Level, Vueling.
-Others.
-PATA’s* new chairman Wong Soon-Hwa replaced Chris Bottrill, there since May 2018. Most of Wong’s work in the travel business was his 22 years with Hertz Asia Pacific through 2015.
*Pacific Asia Travel Association, a Bangkok-based regional promotional body.
[] Words (paraphrased).
-Antonio Guterres, head of the United Nations. Our interpretation of his speech is that travelling can help the world recover from the damage caused by the covid coronavirus.
The most egregious countering fact is of course, that travel was the sole cause of the worldwide spread of covid. If the virus started in Wuhan, China, as generally believed, then it would likely have not gone further if the first carrier/s stayed in Wuhan. But they travelled, as did others, and so spread the virus worldwide.
To have the chutzpah not only to ignore this fact, but to add that travel can help the recovery, seems shockingly irresponsible - if not plain stupid.
Excerpts:
-Tourism can be a platform for overcoming the pandemic.
-By bringing people together, tourism can promote solidarity and trust.
-The United Nations World Tourism Organization is strongly committed to this work. That is not its name; it is the World Tourism Organization, which the WTO abbreviates to UNWTO.
-The livelihoods of many depend on [‘tourism’], especially women and particularly in the world’s most vulnerable countries.
-The protection of biodiversity relies heavily on the tourist sector, from conservation to the revenue generated by those efforts.
[] Life/death.
-Hotel leaders die.
James Sherwood, 86, American. An entrepreneur more than an operator. However, he bought and re-established the Orient Express train (operating London-Venice, despite that name). And he bought a number of grand hotels (best-known, Cipriani in Venice), developed under the name Orient Express Hotels.
Also despite that name, OEH owned and operated trains (including the OE) and riverboats as well as hotels. OEH was renamed Belmond in 2014 and was bought by the LVMH luxury-goods company in 2018.
Curt Strand, 99, American. An operator more than an entrepreneur. Headed Hilton International, working there 40 years until 1987. HI was separate, legally from 1964, from what was Hilton Corporation, and Strand was at HI from the start.
HC was limited to operating Hiltons in the US; HI the rest of the world. At one time, HI was owned by the now-defunct TWA airline (and its rival InterContinental was owned by Pan Am, also defunct). HC and HI became one again in 2006.
Sol Kerzner, 84, South African. Founder of Kerzner International, One & Only Resorts, Sun International. Developed Sun City, now with four hotels, two golf courses, man-made lake, and an entertainment centre with a 6000-seat complex. Developed Paradise Resort in the Bahamas, which became the first Atlantis, with 2000 rooms. Retired in 2014.
-He first did well when South African Breweries funded his Holiday Inn franchise in South Africa.
-Sun City was a product of apartheid - white South Africans could do in that bantustan what they could not do in SA.
-Why were his international creations - Kerzner Intl, O&O, Paradise/Atlantis - failures, a question that we have been asking for a long time? Perhaps he was not a great hotelier?
-Others.
-Air Asia’s top-2 chiefs - CEO Tony Fernandes, chairman Kamarudin Meranun - were cleared of bribery allegations by Malaysia’s fraud office. They had stepped down in February over allegations outside Malaysia that Airbus paid a bribe of US$50mn to two un-named AA executives to buy 180 Airbus aircraft.
-Garuda Indonesia's CEO Emirsyah Satar 2005-14 jailed for eight years. He was found guilty of accepting bribes for buying Airbus A320s and A330s and Rolls Royce engines. In 2019, Garuda’s CEO Ari Askhara was fired for avoiding taxes on a motorcycle imported into Indonesia on the delivery flight of a new Airbus.
‘end