Report details airline's problems

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Air Creebec was alerted to many of its serious financial and managerial problems about a year and a half ago, when a consulting firm did a detailed analysis of the Cree airline.

The consultants' report was prepared for CreeCo. President Abel Kitchen by the firm Raymond, Chabot, Manin, Pare.

The report said Air Creebec employees had a strong will to turn things around.

"We believe a good majority of the management and employees of Air Creebec are dedicated to the success of the company and are disappointed when they are not given the opportunity to participate."

But the report pinpointed many management problems at Air Creebec and listed some of the reasons why the airline was more than $17 million debt. Here are some of the problems that had to be overcome:

- There seemed to be no planning for the mid-or long term viability of the company. Snap decisions were made affecting the profitability of the company without considering revenue or cost.

- The consultants said many employees felt the Crees would continue to bail our Air Creebec indefinitely, despite its losses.

- Air Creebec managers appeared to tolerate the presence of employees who were not motivated. Employee performance evaluations were not done regularly.

- The authors expressed concern about the lack of ethics in the way financial information about Air Creebec was disclosed to the company's own board of directors. The report said the airline's financial department had issued misleading information or neglected to disclose important financial information to the board.

- There were too many managers for a company of that size.

- Air Creebec's organizational structure was too vague. There was no clear understanding of the mission of the company on a long-term basis. Managers needed precise job descriptions and who they should report to.

- Department managers were not asked for their input on decisions that affected their costs.

- Employee management meetings were not occurring on a regular quarterly basis.

- Employees interviewed did not understand or have knowledge of the roles of AirCreebec's president and vice-president.

- Departmental leadership continued to cause problems. Decision-making lacked a systematic disciplines approach. Decisions which should have been made by departmental managers were deferred to a higher level.