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The Birth of an Airline Nine Years of Blood Sweat Toil Tears and Commercial Knee Jerk by J.E.C.CARTWRIGHT B.A.,F.C.A

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The Birth of an Airline Nine Years of Blood Sweat Toil Tears and Commercial Knee Jerk by J.E.C.CARTWRIGHT B.A.,F.C.A The Birth of an Airline Nine Years of Blood Sweat Toil Tears and Commercial Knee Jerk By J.E.C.CARTWRIGHT B.A.,F.C.A. Founding Director and first C.E.O.of Isles of Scilly Skybus Limited 1983 - 1992 Author’s Note, the following pages are edited extracts from a much larger record of my experiences of working for the Isles of Scilly transport services, originally written nearly twenty years ago J E C C 5 July 2009 PARA. CONTENTS PAGE SECTION A THE SHIPPING COMPANY 1 My General C.V. 1 2 Early contacts with the Company 1973 3 3 Requests from co. to work for them and appointment to the Board 1979-1980 5 4 Executive Director 1981 6 5 The Duchy of Cornwall, The Prince of Wales and new strategies for the Company 1982 8 6 Full time appointment 1986 9 SECTION B THE NEW AIR SIDE BUSINESS 21 Beginning of the air service 1983 10 22 First licence application 1984-1985 13 23 Intermediate years 1985-1986 14 24 Second licence application 1986-1987 16 25 The first season of licensed services and purchase of Westward Airways. 1987 18 26 The third licence application and application by BIH to rescind our licence 1987-88 20 27 Intermediate years 1988-1989 22 28 The fourth licence application 1989 26 29 The new runway at St.Mary's 1989-1991 28 30 Further problems at St. Mary's Airport 1987-1992 30 31 The fifth and sixth licence applications and other route plans, Exeter Newquay and Channel Islands 1990-1992 31 32 New ideas,"Fare Deal", value added, "Skyrail", holiday insurance scheme 1991-1992 33 33 Investigations into new aircraft types 1988-1992 35 34 New runways at Land's End 1991-1992 38 35 General summary of air service 1984-1992 39 36 Dealings with British International Helicopters 1982-1992 40 37 Kicked out (and foot note 2009) 1992 50 38 Acknowledgements 51 Page 1 1 GENERAL C.V. 1.1 My date of birth is 17 05 37. 1.2 I am a fellow of the Institute of Chartered Accountants in England and Wales. 1.3 I hold a Practising Certificate for Public Practice as a Chartered Accountant. 1.4 I have an Honours Degree in Economics and Accounting from the University of Bristol. The outline of my career is as follows; 1.5 1956-59 3 Years articled clerk in my father's chartered accountancy practice in London and the Home Counties. 1.6 1956-61 3 years Degree course at University of Bristol. 1.7 1961-63 Senior assistant with Cooper Brothers Chartered Accountants in Bristol, reporting to a senior partner and responsible for the preparation of business accounts, tax work and involved with 3 major public company audits in manufacturing, service and public utility businesses. I then moved into commerce to gain more experience. 1.8 1963-64 Assistant in the Chief Accountants office of E.S.and A.Robinson (Holdings) Ltd. head office in Bristol. ( Soon to become the D.R.G.Group). This was a large company with many subsidiaries employing 20,000 people in the U.K. and overseas. I reported directly to the Chief Accountant and gained experience of "big company" costing, accounting, financial control and budgeting. I was responsible for the quarterly and annual costing reconciliations, management accounts and annual financial accounts of the Paper and Board Mills division of the group. 1.9 1965-72, still with the same company I was asked to join a small team set up to pioneer the creation and installation of a major computer system eventually to handle all the accounting functions of the group including payroll for all employees, sales and purchase accounting, job costing and order processing. In those days there were no "off the shelf" programmes available, we had to learn how to design and programme the systems ourselves. During this time I held various management positions including; systems analyst, chief systems analyst, operations manager, group systems and programming manager. All these were "cutting edge" jobs in a pioneering environment. As operations manager I had a staff of fifty and we worked the computer 24 hours a day seven days a week on a three shift system. As manager I was on call 24 hours a day, seven days a week. I received formal training and practical experience in work study, staff appraisal and assessment. I lead a team developing new techniques and technology in a traditional industry. I attended formal "in house" training courses in management skills in a commercial environment. The project was a success and achieved many firsts in the packaging and engineering industries including; -Central payroll system for 20,000 employees. -Central sales accounting for about 5,000 customers. -Computer based job costing. -Electronic control of machine processes. Page 2 -First electronic data transmission system to and from remote terminals. In 1971 all systems were converted to decimal, this was a major project requiring a project plan extending over 12 months and run to a strict timetable. My team devised and used completely new and innovative techniques to achieve the objective. By the end of 1972 the team had achieved all the objectives set in the original plan and I looked for a new challenge. 1.10 1972-73 I took up a new appointment as Chief Systems Designer at Robertson Foods Ltd. Bristol. This project was another U.K.first. Using the latest technology my team developed an on line order processing and distribution control system for this household name food manufacturer. My reason for moving to this project was that by 1972 the D.R.G. equipment was becoming dated whereas Mr. Robertson was keen to buy the latest technology. The idea of "online" systems was new and I felt I could cope with this challenge. This was to be a business system where the operator would be able to "converse" with the computer which would respond immediately. To-day we take this for granted in 1972 no one knew if it would work! I was working at the forefront of system design and technology and was involved in a number of courses and seminars run by the National Computing Centre to develop and disseminate ideas on these new systems. Both D.R.G. and Robertson Foods had their own fleet of vehicles and some aircraft and I gained a great deal of knowledge about transport, freight systems and aviation during this time. At the request of my employer I undertook a flying training course in 1972. Within a year the Robertson Foods system was up and running and for family reasons I decided to return to my mother's family home town of Penzance and to general practice as a chartered accountant. (My mother's family were through and through Cornish, tracing our ancestors in the area back to the earliest records in the 15 century.) 1.11 1973-86 I joined the firm of Whitaker and Redfearn chartered accountants at Penzance initially as a senior assistant and from 1975 as a partner. Initially I dealt with a wide range of business clients but within a couple of months I began assisting my partner Mr. E Stevens with Isles of Scilly Steamship Company affairs. The Company had been clients of the firm ever since pre war days and relied heavily on us for financial and management advice. Page 3 2 EARLY CONTACTS WITH THE STEAMSHIP COMPANY 2.1 In June 1973 at the request of the then Managing Director of the Company, Mr Henry Thomas, I undertook a work study of the freight booking procedures at the Company's Penzance office. My subsequent report was adopted and the recommendations put into practice and produced a substantial saving in work content and improved information, virtually halving the workload of one person and releasing his time for other duties, in this case to provide more liaison with customers. 2.2 At that time the Company was in some financial difficulty because its one ship was ageing rapidly and there were barely enough resources to finance a replacement. This was because against all advice the Company had for many years operated a policy of low fares and freight rates and had not put by sufficient funds to secure long term survival. This was due in the main to the fact that for a number of years most directors had been major customers of the Company particularly for freight and with hindsight it was clear that the charging policy decisions had had a subjective element. 2.3 A specification for a new ship had been drawn up and put out to tender. In late 1973 a very low bid was received and accepted from a small Tyneside shipyard and an order placed for a new ship. On advice from my firm, as a precaution, a performance guarantee from the yard's parent company was obtained. In early 1974 the shipyard and its parent company went bankrupt and the Steamship Company, having already made two progress payments on the contract, was left with very little cash and no new ship. 2.4 My Partner and I put together a short term "rescue" plan which was endorsed by outside consultants and adopted by the Company. This involved extensive repairs to the hull of the old ship to extend her useful life, using some of the steel recovered from the bankrupt shipyard. This gave the Company a breathing space and the opportunity to try and earn some more cash while at the same time a long term survival package could be prepared.
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