Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Let's get a farm Er International show where we can
Speaker 2: frame the narrative a little bit further. Guy Johnson, it's
Speaker 2: any time, but the see of cut aways. Guy, good morning, Manice,
Speaker 2: thank you very much. Indeed, is the new CEO of
Speaker 2: Cast Airways. It is fantastic to speak with him and
Speaker 2: have him join us here at the farm Ber Ratio.
Speaker 3: Nice to see you, really good to see you too.
Speaker 3: Friday was a busy day for the Aviation Center.
Speaker 4: Talk me through the effects on your airline. Took me
Speaker 4: through the effect you're still seeing. Is there any effect
Speaker 4: that we're still seeing.
Speaker 1: I'll talk about our airline and our airport. Thank god
Speaker 1: we were not affected out of our base and do
Speaker 1: Everything was moving smoothly. Our ontime performance on that specific
Speaker 1: day was around eighty seven eighty eight percent. But we
Speaker 1: were expecting some delays after our wave because our early
Speaker 1: morning wave has basically gone to Europe and the US.
Speaker 1: Were expecting some delays for our flights coming back from
Speaker 1: Europe and the US because the airports were getting busy,
Speaker 1: so many flows were getting canceled. But luckily it was
Speaker 1: better than what we expected from from what's the lesson.
Speaker 1: Lesson You always have to have plan B. If technology
Speaker 1: fails you need to go back to to You need
Speaker 1: to have again you need to defend the dependent technology.
Speaker 3: But you have to have a plan b Ryano this morning, dwngrading.
Speaker 4: It's demand expectations, it's pricing expectations.
Speaker 3: What are you seeing in terms of demand and pricing?
Speaker 1: You know, we have recorded record profit last financial year,
Speaker 1: and we keep getting asked this question and we continue
Speaker 1: to say, no, demand is there, However, proof as in
Speaker 1: the pudding our first quarter of this financial year as
Speaker 1: another record profit. It is way more than the net
Speaker 1: profit that we have recorded in the first quarter of
Speaker 1: last year, and it is also exceeding.
Speaker 3: Our So it's demand accelerating. Let us from what we see.
Speaker 3: Let's okay, you.
Speaker 4: Are going to unveil in an hour or so, your
Speaker 4: new premium class cabin, your first class cabin, your business
Speaker 4: class cabin.
Speaker 3: It's what you've got.
Speaker 4: It's the Q Suite, and it's going to go into
Speaker 4: the Triple seven X, which is an airplane that we're
Speaker 4: all waiting for. Yeah, it's the new Boeing and we've
Speaker 4: been waiting for quite some time. And I'm wondering kind
Speaker 4: of if you're prepared to wait that long to put
Speaker 4: this new product into this new airplane, does it have
Speaker 4: to be the new Q Suite with the new Triple
Speaker 4: seven X.
Speaker 1: You know, we're putting the new Q Suite on both aircrafts,
Speaker 1: the Triple seven X and the three fifty year.
Speaker 3: So it's going to go in the new three fifty absolutely, yes,
Speaker 3: the Triple seven ACTS.
Speaker 1: The date that we have now from Boeing is around
Speaker 1: first quarter of twenty twenty six. Twenty twenty four is
Speaker 1: already over, so you're talking about a year a year
Speaker 1: and a.
Speaker 3: Half confidence on that date.
Speaker 1: Yeah, we got we got a confirmation and a commitment
Speaker 1: from Bowing that they will be able to deliver the
Speaker 1: aircraft on this date.
Speaker 4: So where do we see it? Where do we need it?
Speaker 4: Where do we you see this new Q Suite first?
Speaker 4: Is it going to be on the three fifty or
Speaker 4: the Triple seven X will be on the Triple seven X, right,
Speaker 4: and if it's the layed any further ittle that that changes,
Speaker 4: you'll put it into the three fifteen. Yes, we're also
Speaker 4: expecting a big order from Cata. We thought it might
Speaker 4: come at this air show. There were rumors, there.
Speaker 3: Was some expectation there's civil owners.
Speaker 1: Yeah, but you know it's a it's a big order,
Speaker 1: so we want to take our time and evaluating the
Speaker 1: bids or the offers that we got we received from
Speaker 1: Boeing and Airbus. We're busy evaluating both offers. We're in
Speaker 1: continuous discussion with with both manufacturers and and we're hoping
Speaker 1: we're aiming to conclude the.
Speaker 3: The the deal, the decision.
Speaker 1: By I would not say and this year maybe in
Speaker 1: the beginning of next year.
Speaker 3: Where's it's a lake.
Speaker 4: You're evaluating the offers, so you've got what you need
Speaker 4: or are you still waiting for what you need?
Speaker 1: We got what we we got partially, We got what
Speaker 1: we need and the offers, but we asked for something
Speaker 1: different this time from both manufacturers and and this is
Speaker 1: where we're spending some time and this in the discussion
Speaker 1: with them.
Speaker 4: The engines is the aircraft, what is where's the where's
Speaker 4: the challenge of the will?
Speaker 1: And no, there is no challenge. It's very clear what
Speaker 1: we are asked for. But the other element that we
Speaker 1: asked the the the the manufacturers to bid for or
Speaker 1: to propose it for us, because it is something new
Speaker 1: maybe maybe in the industry or the way the bid
Speaker 1: for for tenders. This is where we are in continuous
Speaker 1: discussion with them.
Speaker 4: Okay, that's the key, Sweet, What difference is that going
Speaker 4: to make? What do you how do you think this
Speaker 4: is going to change the product that you are going
Speaker 4: to be able to offer? And how do you think
Speaker 4: it's going to keep you competitive?
Speaker 3: You know, for us, the Q suite.
Speaker 1: Everybody knows the Q sweet, either you tried it or
Speaker 1: you read or read about it. So it's been there
Speaker 1: for for many years. It raised the benchmark for many years,
Speaker 1: and you know, we won so many awards. Our team
Speaker 1: decided to take a new challenge by basically push the
Speaker 1: bar once again, raise the the benchmark and too basically
Speaker 1: do some some modification and the and the and I'm
Speaker 1: not talking about colors or fabrics or no, it's structural
Speaker 1: changes in the end.
Speaker 4: Okay, Well, that takes me to my next question. Perfectly,
Speaker 4: structural changes, a reassessment of what the airline does. You've
Speaker 4: come in as the new CEO used around the airport,
Speaker 4: you step stepped into the to the airline role. Now
Speaker 4: all I hear about is you changing the culture in
Speaker 4: a significant way. Structural changes at this airline in terms
Speaker 4: of the way that it operates. Taught me through some
Speaker 4: of the some of the metrics you're looking at in
Speaker 4: terms of the effect that that is going to have.
Speaker 4: You're listening people's the way they work, You're giving them
Speaker 4: more autonomy. What effect is that going to have? What's
Speaker 4: the effect is it going to have on things like
Speaker 4: job retention? Tall me through the numbers you're looking for.
Speaker 1: You know, what we are trying to achieve out of
Speaker 1: this is to make people, our people in the company
Speaker 1: feel that they're listened to and they're part of the
Speaker 1: decision and they're not scared or stressed to speak up
Speaker 1: their opinion. By the end of the day, we are
Speaker 1: getting the best the experts in each field in each area,
Speaker 1: and this is what we want to do, basically, to
Speaker 1: have them talk about areas that matters for the company.
Speaker 1: This is on one side, so basically it's a culture
Speaker 1: of empowerment and trust and also basically holding people accountable
Speaker 1: and liable for decisions they make. On the other hand,
Speaker 1: we've noticed with some of the easement and some of
Speaker 1: the policies that we have in place for our staff
Speaker 1: that we see some good outcome of it. Previously, we
Speaker 1: had a problem in certain areas with the attrition of
Speaker 1: ourself to us double digit person and percentage eighteen nineteen
Speaker 1: percent every month. This number dropped by seventy percent. So
Speaker 1: people want to say in the company, people really appreciate
Speaker 1: working for paper Airways and they see that their future
Speaker 1: is with the best airline.
Speaker 3: In the world.
Speaker 4: So staff retention is already improved significant.
Speaker 3: Absolutely, yes, in terms.
Speaker 4: Of what that means in terms of your ability to
Speaker 4: the live products and control costs. What effect have in
Speaker 4: terms of the bottom line.
Speaker 1: You know, by the end of the day, we're talking
Speaker 1: about numbers. Last year we recorded again the highest profit
Speaker 1: in the history of the company. This quarter we are
Speaker 1: recording the highest profit and the history of the first
Speaker 1: quarter and the company. We're talking about percentage wise triple
Speaker 1: digits compared to last year. So this is this is
Speaker 1: a prove that we're looking at revenue plus, looking at
Speaker 1: reducing costs and cutting costs wherever it is necessary, as
Speaker 1: long as it will not affect the customer.
Speaker 3: Experience. I've got one final quick question. I'm going to
Speaker 3: get told off for this.
Speaker 4: Rwanda Rair and some of the South African airlines and
Speaker 4: other areas.
Speaker 3: Took me through what we're going to see in terms
Speaker 3: of deals.
Speaker 1: You know, I was I was hoping to announce our
Speaker 1: investment and in the South African Airline in this interview, however,
Speaker 1: because of some final stages.
Speaker 3: Which name are we talking about again? It's one of
Speaker 3: three companies and I promise you you will be the
Speaker 3: personal I will be the person.
Speaker 4: I paraoma see casa away, sir, Thank you very much.
Speaker 3: Indeed,