CEO's Corner

CEO’s Corner

Turbulent Times: An Exercise in managing Change (Permanently)

Recently the business press as part of their continuing coverage of the current economic downturn, the worst since the 1930’s came up with a new one – “Flat is the new up”. Aviators know how to manage through turbulent conditions, but these conditions are now staying around longer and stronger than ever before.

As Rajat Kumar Gupta from McKinsey & Company wrote “Not since the 1930s have leaders in all walks of life – business, government, NGOs – faced the double-barreled uncertainty of impending war and global deflation. Moving an organization forward in such circumstances would be challenging enough, but in these difficult times we must also factor in the threat of mass terrorism on an unprecedented scale”.

Historically, business cycles went up and down, with managements adjusting accordingly, lay off personnel, cut costs, reduce inventories, minimize travel etc. But now business cycles are the equivalent of continuous wind shear conditions in the global economy. For example, the new thinking at places such as the Harvard Business School is that when the economy recovers, things will not be back to normal. Therefore, business leaders need to adapt to the new reality – managing in crisis mode permanently, identify and manage risks internally and externally, count on irrational conditions, more encroaching government regulations along with hardnosed clients. Not to mention the threat posed to business aviation ill-informed Government officials in the U.S. trying to score short-term political points at the expense of business aviation and the economy.

At the CBAA, we are convinced more than ever in such a volatile operating environment and economy, that Canadian Business Aviation operators need member services, perspectives and insights beyond the Private Operator Certificate program that is currently our core member service. The CBAA’s capabilities need to better reflect the operating realities and complexities of our members.

During 2009, CBAA staff has been working in Ottawa, Washington, Montreal (ICAO) and the European Union to help members with a myriad of complex issues which can affect their day to day operations. These include Security, border management and facilitation harmonization; compliance issues with the European Emissions Trading Scheme; 2010 Olympics Planning; Tax issues affecting members; fractional ownership; regulatory decisions that make no sense; airport access issues; and SMS to mention a few.

In undertaking this work, CBAA staff continuously work and liaise with government departments and agencies in Ottawa and abroad to keep current on many of these issues. In addition, CBAA has also been undertaking work together on issues of mutual interest with aircraft manufacturers, sister associations and other stakeholders.

In the fall of 2009, CBAA will continue its outreach to members to gauge the issues that are important to members and communicate concerns to the appropriate agencies.

Sam Barone

President and CEO