215. Air Canada CFO John Di Bert on managing uncertainty
Aug 22, 2024
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John Di Bert, CFO of Air Canada, and John Kelleher, a senior partner and global co-leader in finance, explore the complexities of the airline industry. They discuss Air Canada's strategies for sustainable growth amid economic uncertainties and how effective financial leadership is vital for resilience. Di Bert shares insights on their unique business planning triangle, emphasizing value creation and risk management. Aspiring CFOs receive key career advice on fostering trust and deep business understanding, setting the stage for future leadership.
John Di Bert emphasizes the importance of finance professionals engaging actively with operational teams to enhance strategic decision-making and accountability.
The podcast highlights the critical role of structured risk management in navigating uncertainties and ensuring long-term sustainability for businesses in volatile industries.
Deep dives
The Role of Finance in Business Strategy
Finance is positioned as a critical player in the strategic framework of a business, necessitating a deep understanding of both the organization's objectives and the dynamics of the industry. Engaging fully with operational colleagues and executives is essential for finance professionals, as their insights help drive informed decision-making. The importance of articulating data-driven arguments cannot be overstated; it is vital for finance leaders to actively participate rather than remain passive observers. This engagement not only fosters a culture of accountability but also strengthens the overall performance of the organization through collaborative debate and informed analysis.
Navigating Macroeconomic Challenges in the Airline Industry
The airline industry is acutely sensitive to macroeconomic fluctuations, with factors such as geopolitical tensions, inflation, and changes in consumer behavior directly impacting operations and profitability. As the CFO of Air Canada, one must adapt swiftly to these variables while managing a significant fixed cost structure. A successful finance strategy includes maintaining a robust understanding of consumer traffic and revenue management, allowing for timely adjustments to asset deployment. Given the ongoing volatility, it is crucial for finance teams to stay agile, ensuring that they can respond effectively to the ever-changing landscape.
Framework for Effective Risk Management
A structured approach to risk management is essential for long-term business sustainability, especially in an unpredictable environment. The framework distinguishes between controllable, uncontrollable, and unpredictable risks, encouraging organizations to focus on proactive measures and early indicators. Effective governance requires setting clear roadmaps and accountability mechanisms to drive actions that mitigate risks while capitalizing on opportunities. By fostering resilience within the business model and regularly testing its robustness, organizations can better prepare for unexpected challenges and preserve shareholder value.
This week, we are joined by John Di Bert, CFO of Air Canada, and John Kelleher, a senior partner based in Toronto and the global co-leader of our Finance and Capital Markets service line.
Recorded at our recent CFO forum in London, this discussion delves into how Air Canada is positioning itself for sustainable growth and stability, the key financial strategies that other CFOs can apply in similarly complex industries, the financial leadership required to navigate the inherent uncertainties of the airline industry, and the strategic vision necessary for long-term value creation.