Cayman Airways CEO Fabian Whorms provided the following response to the Cayman Compass in response to questions about the Office of the Auditor General’s report.
Cayman Airways response, Fabian Whorms, CEO
As CEO of Cayman Airways, I am pleased to address the recently concluded performance review conducted by the Office of the Auditor General of the Cayman Islands, titled ‘The Efficiency and Effectiveness of Cayman Airways,’ covering the five-year period from 2018 to 2022.
This exhaustive examination spanned different Cayman Islands Government administrations and Boards of Directors, encompassing a transitional period marked by strategic realignment, particularly from a governance standpoint.
It’s also important to note that this period including the disruptive impacts of the COVID-19 pandemic and also the worldwide grounding of the Boeing 737-8 jets, which added significant complexity to our financial and operational metrics.
The report however emphasises the airline’s tremendous positive financial impact the Cayman Islands economy, with an economic contribution in excess of US$1 Billion over the review period, despite the impact of the covid pandemic. This underscores the indispensable socio-economic value that Cayman Airways delivers to our Cayman Islands, in exchange for the government’s annual equity investments and output purchase funding.
The report therefore highlights the successful use of Cayman Airways as a strategic tool for the Cayman Islands, whereby the country has been positioned as the profit centre, with the airline directing all its operational activities towards the benefit of the Cayman Islands, albeit at times negatively impacting the airline’s own financial performance.
Furthermore, the review examined our compliance with statutory requirements and alignment with industry best practices and in instances where the report included critical observations and recommendations, we have fully endorsed the suggested improvements and have committed to implementing them.
This is a positively proactive approach which reflects our typical and consistent dedication to maintaining the highest standards of governance, fiscal responsibility, and operational delivery.
For the first time in such a forum, the airline’s airlift framework has also been scrutinised and unpacked.
This 2009 airlift framework initiative was an initial approach to elucidate the airline’s operations and establish clear responsibilities. In it, the Core operations were defined as the profit-producing arm of the airline, with the Board and Management being accountable for the outcomes.
Meanwhile, Strategic Tourism and Strategic Domestic services were provided on behalf of the government, which shared accountability for these services.
The report provides solid recommendations on improving the government’s funding model to align with this framework to ensure that value for money is clearly articulated.
Similarly, historical issues such as annual budgets, having been shaped by the needs and constraints of the CIG, and not necessarily the airline’s requests or operational needs, have been raised as matters that need further refinement to ensure alignment between government objectives and Cayman Airways’ operational needs.
On behalf of the Board of Directors, the Executive Team and all the hard working employees of Cayman Airways, I wish to extend my sincere gratitude to Auditor General Mrs. Sue Winspear and the dedicated staff of the OAG for their diligence and professionalism throughout this comprehensive review process.
Their efforts have provided invaluable insights that will further strengthen Cayman Airways’ performance and strategic direction, and in closing, I would like to assure our stakeholders, including our loyal passengers, dedicated employees, and the broader Caymanian community, that Cayman Airways remains steadfast in its commitment to delivering exceptional service and contributing positively to the socio-economic fabric of the Cayman Islands.
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