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Despite a tough two years of major losses for Air Niugini, it seems its current transformation programme has made positive inroads with a K20 million (US$5.9 million) being saved over the last three months.
Its Managing director and CEO Alan Milne made particular reference to the airline’s ‘Higher Altitudes’ program which will improve very good systems currently in place.
“We have started a transformation program. I’ll call it transformation once because that implies that you are trying to fix something that is broken. And Air Niugini is not that.
“Prior to assuming the role, obviously I did my due diligence. Am I walking into an airline that is broken? Do I have the time to fix it? That due diligence up to my employment was fantastic.
“We have got good systems, good safety ethos and all that is a very good start and that has all been confirmed with my time in the business.
“It is a great operation, so the catch phrase that we are using with our people is that we are turning a really good airline into a great airline.
He said the company kicked off the program higher altitudes in December to get the governance program in place with the structure.
“Every time they (direct reporting managers) mention new projects because I say have you captured it in the programme.
“Is it revenue benefit? Is it people opportunity? Just capture it in the program.
“Just doing that alone we have captured a K20 million saving in three months, predominantly in the cost control area of course,” Milne said.
He thinned the executive arm from 23 direct reports, down to 10 executives at the near top of the business structure.
“So that improves a couple of things. One, it is a lot more manageable and two, it is a really good signal to the rest of the business that we are serious here and that it starts at the top.
“I had a lot to do with the management implementation system at Qantas so I am happy to bring my experience and background into that.
The higher altitudes program hinges on four main pillars, first being cost control through the establishment of a cost control committee that sits daily.
“Most invoices into the company go across the table of that committee and they sign off.
“Pretty much unsustainable, because the workload is high, but once we get a really good picture and image for the rest of the business, to see that we are reviewing invoices and we are questioning.”
Three other pillars include, revenue opportunities, staff development, and customer and operational focus.
SOURCE: POST COURIER/PACNEWS
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