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Originally Posted by Tobuz
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New answers to the questions posed in the Yedlin article, I promise these will not be a repeat of previous discussions.
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Why are there no seats at the gates? Where are the people movers? Why can’t we find something to eat or drink near the gates?
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No seats at the gate could be a requirement of the retail concessions. The previous sales experience from concourse B for F&B sales was abysmal due to poor quality vendors. However, to entice new entrants YYCAA might have had to configure the retail area to be more traditional mall and less like a traditional airport. After all, who wants the retail location at the end of the long hallway.
The YYC Link was over promised and under delivered. It should have been explained better that the link trains would be post security and in the domestic terminal only. Further, YYCAA should consider moving some of the YYC Link trains to the transborder terminal, both in departures and arrivals.
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“I have had several conversations with Gregg (Saretsky) at WestJet. They are our number 1 customer and guess what? When your number 1 customer talks, you have to listen,” said Sartor.
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“The second piece is to make sure our major customer feels loved and taken care of. I have to do them both at the same time.”
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The second statement is very concerning and speaks to the lack of knowledge Sartor has for the Canadian airline industry and particularly WestJet.
WestJet big problem is that they are unwilling to invest in the long term future and cannot articulate a consistent strategy 5 years out. Examples include:
- If WS wanted, they could buy their way into concourse C. Offer enough incentives to AC and they will relocate.
- Gates A5-6 should not have been built. The conversion was less than one year before arrival of the new terminal and then WS could have used surplus capacity on A or B concourses.
- The old flow through check-in stations were built for WS but occupied by them for less than two years.
In contrast, WS was offered a long-term commercial agreement by the GTAA. They refused to sign so AC used the opportunity to send Sunwing, Etihad, & Emirates to T3 to free up CBSA and CATSA space in T1. Once WS figured out they were getting screwed, they hurriedly signed a similar contract.
The problem for Sartor is that he could cost YYCAA lots of money trying to work with an incoherent long term strategy at WS.
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Looking at the issues Sartor refers to, the question has to be asked — where was the board?
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The current YYC board does have a critical lack of aviation experience. Only 2/17 directors have an aviation background and only 1 has commercial aviation experience. Additionally, 4/17 directors are appointed by municipalities. The compares unfavourably with YVR where 3/13 directors have aviation background including commercial airline experience, plus an additional 3 directors have significant foreign/export company experience in the Asia Pacific region. Further, only 3/13 directors are appointed by municipalities.
Board composition structure does deserve a lot of attention, but the advantages of the YYCAA board composition need to be addressed. From a historical perspective, we have 10/17 directors elected by Calgary Chamber of Commerce because the City of Calgary refused to get involved in airport matters.
From a current perspective. The City of Calgary is more concerned with minor levels of airport noise and with approving secondary suites in AVPA (airport vicinity protection area) than they are with the efficiency and effectiveness of an $8 Billion dollar and 40,000 job economic generator.
Let’s contrast Calgary and Chicago. When the economic generator like ORD/MDW has an issue the mayor of Chicago gets involved. Runway capacity at ORD was an issue 10 years ago, so the Mayor and Council worked with the airport authority to fix the situation (more runways and better placement). Last year when TSA lines threatened the tourist and convention market, it was Rahim Emmanuel (Mayor) who was front and center with the problem and present at the solution (25 high capacity securities lines). Nenshi only talks about having discussions with Sartor regarding airport noise and secondary suites.
A transoceanic route is worth $2-10 million dollars GDP to the local economy. Edmonton has cargo flights to PEK, we don’t. Edmonton has connection to Iceland, we don’t. 30-50% of traffic on YEG-LGW has the O&D point in YYC. The number 1 operator at YYC has major concerns about using the airport as a hub. To the point where WestJet is focusing growth away from YYC and to other airports. In April when Sartor goes before Council, these are the issues that should be brought up. However, in the last 5 years of Atkinson going before council, never has economic issues come up during the Q&A session.
A better governance structure for YYCAA could be accomplished, but having the City concerned with small issues while ignoring the major economic status of the Airport does not inspire confidence that additional city appointments would resolve the situation.
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not directly raised by Yedlin, but was poor governance at YYCAA an issue in Sartor’s hiring?
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I have debated internally over and over whether Sartor is the right guy for the CEO of YYCAA.
Initially I was against the appointment, mainly because Sartor has zero aviation experience, skills, and connections. But at the time my surprise was mainly that the board did not promote from within the organization. The pole position for new CEO was held by Stephan Piorier, in my opinion.
Then I was persuaded to think that Sartor was the right guy because he had lots of skills leading companies with high customer experience requirements.
Last week I had the great honour of going to YEG and having a conversation with Tom Ruth, CEO of Edmonton Airports. My thoughts have changed again, the Board made a serious error in hiring an outsider to the aviation business. I think they hired the best Calgarian, but not the right person to lead the most national and global of governmental organizations based in Calgary.
Tom Ruth (YEG CEO & fmr YHZ CEO) is one helluva an airline guy. He gets the airline business and has the experience needed to guide airport development. Most importantly, he has the connections nationally and globally to put FlyEIA on the map and to get the inside story from other airports successes and failures. I doubt Sartor will have an invitation to the World Airport CEO council, but Ruth is on the board.
Craig Richmond (YVR CEO) is also one helluva an airline guy. Amongst major world airport CEOs, Richmond is the one I respect the most. Richmond does an annual 50 minute presentation to the Vancouver Board of Trade. I send the kid to bed and sit down in front of the TV for 3.5 hours digesting the yearly missive. Richmond is the only Canadian airport CEO to call out both CATSA and CBSA as organizations that were harming the reputation of YVR as a major destination. He was professional and on point in his attack, but also advocated for much needed change at both organizations for better passenger service.
Howard Eng (YYZ CEO) also has the chops for running a global airport, having gained invaluable experience at HKG during the conversion from Kai Tak and subsequent growth of the new HKG. In the early days of his tenure, Eng faltered a little with lack of experience handling a major ice storm in Toronto. But overall the growth of YYZ, both in partnership AC and attracting other airlines is his legacy.
Philippe Rainville (YUL CEO) is new to the job but has 15 years experience as CFO and was COO of another aviation organization before that. He probably knows a few people in the airline business.