Lufthansa Consulting, a wholly owned subsidiary of Lufthansa Airlines in Germany, was awarded the contract to do a comprehensive efficiency audit on Cayman Airways, Minister of Tourism Charles Clifford announced Friday.
The Central Tenders Committee awarded Lufthansa Consulting the contract after reviewing 11 different bids.
The audit will look at six key components of Cayman Airways, including human resources, information technology, marketing and sales, route planning and scheduling, operations and purchasing and supply chain.
Mr. Clifford expressed his confidence in Lufthansa Consulting.
‘The company has demonstrated experience in worldwide airline consulting and achieving cost savings in a variety of areas for its clients,’ he said. ‘The firm’s international expertise and the quality and depth of their proposed team will provide both the proper perspective and the necessary quality for the audit.’
Lufthansa Consulting, which is headquartered in Cologne, Germany, has a staff complement of 80.
Mr. Clifford said the firm has conducted successful audits on a number of other airlines, including Aeropostal, Varig, Air Madagascar, Mexicana and Bahamas Air.
The goals of the audit include improving organisational productivity of Cayman Airways in its entirety; streamlining and updating information technology; increasing the effectiveness and competitiveness of passenger and cargo marketing and sales; improving aircraft utilisation and lowering costs per seat mile; increasing efficiency of flight operations while preserving high safety standards; and improving the efficiency of the purchasing process.
Other efficiency audits have been done on the airline in the past, but none as comprehensively as this one, Mr. Clifford said.
The audit process will be a collaborative one done in close coooperation with the management and employees of Cayman Airways, Mr. Clifford said.
‘This approach will result in more practical and innovative recommendations which have the necessary support and backing within the company,’ he said. ‘In addition to increasing local buy-in, this approach will optimise the transfer of Lufthansa’s professional methodology and know-how to Cayman Airways’ employees.’
Mr. Clifford said he was willing to look at any recommendations made by Lufthansa Consulting.
‘From my point of view, if the recommendations make sense, they’ll be implemented,’ he said.
Lufthansa Consulting will look at both problems and solutions.
‘What’s good is that they’ll not only be telling us what’s wrong, which is important, but they’ll also be telling us how to fix it,’ Mr. Clifford said.
The audit recommendations will be looked at by both the Ministry of Tourism and the Cayman Airways Board of Directors, Mr. Clifford said.
Some recommendations can be implemented quickly, while others might take time, like, for example, if Lufthansa recommended new aircraft.
Mr. Clifford said he thought the Boeing 737-300 aircraft were ideal for the current load factors of Cayman Airways.
‘But who knows,’ he said. ‘Maybe the audit will tell us something different.’
The results of the audit are expected be released by the end of June.