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One on One with Russ Payne, CEO of Skyservice

With Russ Payne, CEO of Skyservice

Written by Darren Locke   
When we started the airline in 1986, we already had offices and maintenance facilities in the Fixed Base Operations hangars. 202-skyserviceSkyservice Airlines is one part of a diversified group of aviation companies. How has this strategy benefited the charter operation?
When we started the airline in 1986, we already had offices and maintenance facilities in the Fixed Base Operations hangars. We basically hit the floor running with the airline and our own support environment from day one. We had flight operations on the business aviation side, which contributed very quickly to our ability to put out quality product and services in all respects.

It was a different course of action than most of the new airlines that have started in Canada, which contract out an awful lot of different functions. We contract out very little.

One of the guiding principles Skyservice had even before the airline was established was our focus on quality. That includes building a quality work environment. It’s the attitude and dedication of our employees that makes us what we are – I just can’t say enough about them.

Do you expect the airline will continue as a charter carrier, or do you think there is an opportunity to operate scheduled services also?
For the foreseeable future I would see us operating as a charter carrier. We have looked at some scheduled and international services in the past, and we will continue to examine them in the future. But we have taken a very, very selective approach to growth. First and foremost, we’ll be profitable over the long term, and growth will be well thought-out. At present, we do not have plans to enter into scheduled services – but I would never say never.

There is a school of thought that an airline can save up to 25% in maintenance costs by operating a fleet supported by one aircraft. The Skyservice fleet consists of Airbus A319, A320 and A330 aircraft. Do you agree?

We haven’t carried out any comparative studies of ourselves versus multi-fleet operators, so I can’t comment on the 25% number. From maintenance to engineering planning, inventory management, purchasing and everything else, it is very much simplified by having a common fleet – but to a point. Even though an A330 may have comparable performance characteristics and capabilities, it is still a different airplane.

Do you expect that Skyservice will add aircraft such as the Airbus A340 or A380 to the fleet as industry growth returns?

Certainly our main focus will be on growing the Airbus fleet in the future. I do not foresee adding the A340 or A380. Again, you never say never, but in terms of the A380, I would say there’s not much probability.

On two separate occasions since 9/11, US airlines have received financial assistance from the government. Has this contributed to a more uneven North American playing field?
Yes. Look at the financial results of some of the carriers in the US, and the assistance basically became the profit in the quarters when they received it. We were very disappointed that the US government acted and the Canadian government elected not to. Instead, the downloading of security costs and a lot of other [taxes and fees] have served to widen the gap between where we should be and where we are.