Originally Posted by
Fiordland
Georgian is the lowest cost bidder on a contract to AC where they frankly bring very little IP or assets to the table. The brand caries no value. The aircraft are probably leased. The customer service procedures are dictated by AC. The maintenance procedures are dictated by the aircraft manufacture. Where can Georgian generate a competitive advantage? Labour cost? Finding creative ways to cut corners? If AC fires Georgian, it will be replaced with another operator in the same boat.
While there is an competitive advantage to being young, small and agile, there is also a competitive advantage to economies of scale. Its not hard for anyone to think of a friend who tried to scale up and just crashed and burned. The good home cook who opened a restaurant, a plumber or electrician who hired on some assistants and apprentices and couldn't handle being a boss.
I only know what Wikpedia tells me, but the CEO is a pilot. The VP of maintenance is an old mechanic. VP's of flight operations and corporate development, also pilots. Viewed one way, this is a great executive team of people who know the nuts and bolts of operations. Viewed another way, its a collection of good ol' boys who, while being OK at flying or even managing a 5 A/C fleet are simply being pushed beyond their professional abilities.