SITA responds to criticism of its governance

It announced at its 2014 Annual General Assembly (AGA) in Brussels today  that it has called for a review of the organisation's governance.

The SITA Council voted to support a review by a joint committee with the results to be fed back to the next AGA in June 2015. The committee will comprise senior representatives from its member companies.

Francesco Violante, SITA chief executive, will remain in his position until then.

SITA's decision comes on the back of Qatar Airways chief executive Akbar Al Baker's recent assertion that the organisation must “clean up its act and concentrate on serving the industry”.

Al Baker had been speaking at the International Air Transport Association (IATA) annual meet in Doha, Qatar, earlier this month.

Al Baker went on to say: “We [must] make sure that SITA is owned by airlines and are serving the airlines properly and that individuals who are not in the industry should not occupy board membership.

“People should know that they are accountable and that they should not be doing management changes that are in personal interest of certain individuals,” Al Baker said.

He added that: “In theory you are having a CEO who is a lame duck for the next 18 months, so nobody is ready to take his direction”.

Speaking after the AGA in Brussels, outgoing SITA Chair, Paul Coby, said that it is important that an organisation listens to its members. “But I'm very pleased that Francesco will continue to lead SITA during the review period.”

Violante said: “I was intending to leave at the end of 2015, but I will now remain until the announcement of the committee's findings.

“I am committed to completing SITA's transformation, part of our strategy to take us through to 2020.”

SITA’s membership comprises around 90% of the world’s airlines – the majority shareholders of the not-for-profit organisation.

Violante said: “I am fully committed to continue to lead SITA and work with the new Chair, Board and Council to deliver our business performance in line with our strategic vision. We will continue the transformation in our portfolio and capabilities to further strengthen SITA’s value for its air transport owners.”

The change at SITA has come in the year that the organisation is reporting strong business results and company-wide growth. Paul Coby led the Board through 11 years that saw SITA transform its business model to the commercial-cooperative approach, which is delivering benefits back to its air transport industry members and confirming SITA as a key asset to its owners. The value of SITA, as assessed by an independent valuation methodology, has increased from US$ 525 million in 2005 to US$ 2-2.5 billion in 2013. Cody is eplaced by Bill Miller of United Airlines.

Francesco Violante - staying on until review outcome is reported back