Transcending doing what you love: A story of success in aviation
Enrique Beltranena, Executive Chairman & Chief Executive Office, Volaris
Briefly share highlights of your background and professional experience.
EB: I am the founder, Executive Chairman, Chief Executive Officer and Member of the Board of Directors of Volaris, the Mexican ultra-low-cost airline operating in Mexico, the U.S., Central America and South America. Although my professional career in the aerospace industry began in 1988, I had always been passionate about aviation since I was a child. I remember myself playing with planes instead of cars and joining my father on several adventures while flying our family Cessna.
Now, in terms of my professional incursion in the industry, I would have to start in Guatemala in the 1990’s when, as general manager of Aviateca, I supported the commercial merger of that company as well as Sahsa in Honduras, Nica in Nicaragua, and Lacsa in Costa Rica, into Grupo TACA. For over ten years in this new airline, I held several positions such as Chief Operating Officer, Vice President of Human Resources and Institutional Relations, and Vice President of Cargo and Commercial Director for Mexico and Central America.
In 2005 a group of visionaries and myself started developing the Volaris project based on an innovative ultra-low-cost business model to offer the lowest base fares, complimentary services, and outstanding customer service. Our first flight took off on March 13th in 2006. With that, a new era in Mexico’s aviation began by democratizing the skies so that more people could fly.
In 2013 I led the company to complete its initial public offer, as well as trading on the Mexican Stock Exchange and the New York Stock Exchange. This placed Volaris among the top five publicly traded airlines in Latin America.
In addition, in November 2016, the Volaris Costa Rica subsidiary was inaugurated as part of Volaris' international expansion to offer flights within the central American region at ultra-low-cost fares. In August 2021, we obtained the Air Operator Certificate in El Salvador.
Since the beginning of the Covid-19 pandemic in 2019, Volaris has retained its place as Mexico's top airline and is among the top three airlines worldwide with the strongest recovery.
I proud myself of being a Member of the IATA Board of Governors, and a National Board Member of the Coordinating Council of Women Entrepreneurs.
You have been very successful in a highly complex industry: aviation. In your opinion, what has been the key to your success
EB: Without any doubt, the Volaris family has been fundamental to our success and reinvention throughout the years. I have an outstanding executive committee, a first-class directors’ team, and the most talented people in the industry. They all have helped Volaris navigate through many challenges and taken our company to the next level.
I think the most notable example of our adaption capacity and outstanding execution is the health crisis and economic shocks caused by the Covid-19 pandemic. We proved to be resilient, emerging as the leading airline in terms of market recovery in Mexico and the Americas. This was possible due to several factors implemented around our business model, including financial discipline, resilience and adaptation to the new normal, understanding the needs of our stakeholders, a corporate sustainability strategy and, of course, the extraordinary work of the Volaris Family.
Over the last two years, we saw rapid market changes resulting from the surges of Covid-19 variants. Our seasoned executive team has been through many demand fluctuations and has been able to quickly recognize these fluctuations and pivot when needed, resulting in our ability to report strong TRASM and CASM ex-fuel that have delivered EBITDAR levels well above our domestic and international peers.
The growth of the middle class in Mexico has also been crucial to Volaris' success as the demand for air travel and the shift from long-haul bus travel to air - Volaris' main strategy to serve the VFR market (visiting friends and relatives) - continues to grow robustly.
As for the international market, we have focused on Central and South America. We have also focused on growing our ties to the United States since the FAA downgraded Mexico's air security to Category 2. Although we are closely working with Mexican authorities and regulators to regain Category 1, Volaris has been executing a comprehensive Central and South America expansion plan.
It doesn’t come without saying that every crisis is an opportunity, and especially in this industry you learn to make this statement your mantra.
What leadership skills and values differentiate you from the rest of the executives?
EB: This is a very interesting question. I strongly believe that true passion translates into effective leadership. Since Volaris took off back in 2006 I have been involved in all the airline’s areas, from operations to human resources. I remember spending weekends at the airport’s counters helping our clients with their reservations, checking-in luggage... talking with our mechanics and engineers. I believe this is the major difference. It has a lot to do with capability, of course, but mostly with your willingness to transcend doing what you really love.
What has been the biggest challenge within your current role?
EB: We have already talked about the health crisis, which I believe was the biggest challenge not only for any CEO, but for the entire world.
Apart from this, I think the biggest challenges in the aviation industry are those related to flying high while keeping our feet on the ground: there will always be a financial, traffic, fleet, or environmental goal, but we must deliver with a strong sense of our number one priority. In a globalized world you will always encounter best practices, challenging scenarios, disruptive markets, and new travel trends, but that does not mean we can forget our business fundamentals: people and safety. In the case of Volaris, people represent our Family and safety represents our DNA.
As a Latino top executive, what is the greatest asset you can bring to a Corporate Board?
EB: Experience, Business intelligence, Empowerment, Leadership. All of which I could not offer without the guidance and expertise of the right people.
**
Photo credit: Courtesy of Enrique Beltranena
**
Editor’s pick:
“I think the biggest challenges in the aviation industry are those related to flying high while keeping our feet on the ground”
Editor’s pick 2:
“It has a lot to do with capability, of course, but mostly with your willingness to transcend doing what you really love.”