Marc Cavaliere, EVP North America
South African Airways

Earlier this month, South African Airways’ board approved a “far-reaching” restructuring plan that the airline said it needed in order to return to profitability within 18 months.

SAA said it would sell off some non-core businesses; reduce staff; refocus on its retail, government and corporate sales channels; ground six 747-400 aircraft with poor cost-to-revenue ratios; reconsider its fleet structure; add capacity in profitable markets; terminate service in unprofitable markets such as Paris and Zurich; and continue to leverage its Star Alliance membership with flights to Star partner hubs.

At a Star Alliance 10th anniversary event in Washington, Aviation Editor Andrew Compart talked to Marc Cavaliere, the airline’s executive vice president of North America, about what the changes would mean for the

U.S. market. SAA offers daily nonstops from Washington Dulles and daily one-stop service from New York’s Kennedy

Airport.

Q: How did South African reach the point where it need- ed to do this? Marc Cavaliere

A: Over the years, we had continued to operate much as the legacy carriers had done: We accrued some inefficiencies, and they continued to build up. Most of the world’s carriers have done a lot of restructuring.

We’ve lagged a little behind. Now it’s our turn to step up to the plate. Although we’re a wholly owned state airline, the government expects us to be profitable.

Q: There will be some significant route and frequency changes involved in this restructuring, both additions and subtractions. What’s happening in the U.S. market?

A: In North America, we continue to be focused on growing the market and growing our business. For now, we’re status quo. I think it’s important at this point that we get through all the restructuring before we embark on any new routes, but hopefully we’ll have some announcements down the road. The North American market is a very strong market for us.

Q: The plan talks about “refocusing” the sales effort. What does that mean?

A: We very much work directly with all of our travel partners. But as more consumers are shopping online, we’ve had to step up to that opportunity, as well.

Also, a lot of that refocusing ties in with programs that we’re doing in conjunction with our Star Alliance partners, particularly here in the U.S. in working with United. It also pertains to some of the sales programs we have on the corporate side in South Africa.

Q: Will your U.S. staffing levels remain the same?

A: There won’t be any changes. We already have a pretty focused, lean organization here. We still have our same staff of 10 sales directors across the country that all report to our vice president of sales in Fort Lauderdale. We’ve increased the staffing at our inside sales organization in Fort Lauderdale. We still have the seven-day-a-week operation of our customer call center and our frequent-flyer desk in Fort Lauderdale.

Q: Will there be product changes?

A: We’ve already started with product enhancements. We’ve upgraded all of our services out of the U.S. to the latest state-of-the-art Airbus A340s. They have our advanced business class with the lie-flat beds, individual entertainment systems and the expanded, long-haul configuration in business and coach.

Q: What happens if this re-

structuring plan doesn’t work?

A: Our focus is that the plan will work. The airline has been around for quite a while, and I think we’re putting in the necessary changes.

Q: Is there talk of privatizing the airline?

A: I think we all realize that while we’d like to get the point where the airline is privatized down the road, our first order of business is to make sure we take care of an effective and successful restructuring. That will best position the airline for private equity and private investment.

It isn’t often that TC sees New York Mayor Michael Bloom-
berg attending travel industry press events that have no di-
rect connection to the Big Apple. But there he was last week

at Hertz’s lunch to announce the expansion of its environmentally friendly Green Collection. It could be that Hertz CEO Mark Fris-sora extended the invitation to Hizzoner through his son, who happens to be married to the mayor’s daughter.

TC hears that a consolidated conference may be in the works now that the Caribbean Tourism Development Co., a marketing and business development unit owned equally by the Caribbean Tourism Organization and the Caribbean Hotel Association, is up and running.

Instead of each organization hosting its own annual confab, one major conference hosted by both has been discussed. Other annual events, such as the Caribbean’s Sustainable Tourism Conference, might be melded into other meetings, as well.

The quid pro quo for accepting the invitation? Perhaps it’s that 100 of the new 3,400 hybrid cars being added to Hertz’s fleet have been earmarked for Hertz locations in Manhattan.

A few less Caribbean conferences on the calendar each year would be welcome news to the tourism officials who shuttle frequently from podium to podium in different island venues, often to discuss the same issues. (It would be welcome news to the reporters who cover these events, too.)

During his speech in New York outlining the changes taking place in marketing Caribbean tourism, Vincent Vanderpool-Wallace, secretary general of the Caribbean Tourism Organization, paused for a sip of Fiji bottled water.

He noted wryly that it came from half a world away from the region he was touting.

“I know we will have another brand of water at this podium next year,” he said, glancing meaningfully at the event organizers.

Friends & Colleagues

director of sales and marketing at the Brisbane Marriott in Brisbane, Australia.

‘Most carriers have done a
lot of restructuring. We’ve
lagged a little behind.’

Carlson Hotels Worldwide named Brett Zabel director of travel industry relationships, a new position. Zabel is responsible for driving synergy between Carlson Wagonlit Travel and Carlson Hotels. He had worked for CWT in two areas over the past seven years: CWT Solutions Group and Global Supplier Relations.

Fidel Hinojosa was named vice president of operations for Nickelodeon Family Suites by Holiday Inn in Orlando. He was vice president of portfolio management for CNL Hotels & Resorts.

Ronald Roy was appointed executive vice president, Americas for Luxury Lifestyle Hotels & Resorts, a joint venture of the Stein Group and Sol Melia Hotels & Resorts. He joined Sol Melia in 1997 and most recently was vice president of marketing and distribution.

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Carlos Coriano was named director of sales and marketing for the Island Outpost boutique hotel collection in Jamaica and the Bahamas. Coriano also serves as executive director of Andria Mitsakos Public Relations.

Ricardo Acevedo (above) was appointed general manager of the Four Seasons Hotel Miami. He had been general manager of the Four Seasons Hotel Singapore.

(SUBMIT YOUR STORIES AND PHOTOS: Gerry Bourbeau, Travel Weekly deputy managing editor, at gbourbeau@travelweekly.com.

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Simon Bell was named director of marketing of the St. Kitts Marriott Resort & Royal Beach Casino. Bell was

Mike Aylmer was named director of sales and marketing at the Homestead, a KSL resort in Hot Springs, Va. Aylmer, who has been with KSL Resorts since 1998, was senior director of national sales.