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April 20, 2008 08:20 am
Former airline president: Economic turbulence inevitable
By M. Scott Carter
CNHI News Service
MOORE, Okla. — For the most part, Southwest Airlines former CEO Howard Putnam is an optimist.
And he doesn’t mind some turbulence.
Because, he says, that turbulence brings new change.
“Turbulence can work for you as well as against you,” he said.
At a recent meeting, Putnam used airline references to tell area business leaders that downturns in the economy and problems in business are always going to happen.
“Turbulence is inevitable,” he said. “But misery is optional.”
Putnam said the trick is to stay alert.
“Everything goes through cycles. Everything goes through seasons,” he said. “If you can just be alert to what’s going on. Sometimes your people are gonna see before you do. So you gotta listen.”
Putnam urged business leaders to stick to their core philosophy and to surround themselves with employees who were passionate about their work.
“Don’t hire people with all the degrees. Hire people with the attitude and the passion.”
And those employees, he said, should be well treated.
“Make your employees number one,” he aid. “If you make money, it should be shared.”
Putnam’s optimism covered the entire country.
He predicted the current recession — still struggling under the weight of a sub-prime mortgage crisis — would “hit bottom” right after the fall elections, but begin to improve in 2009.
“By then we should have most all of foreclosures out,” he said. “Still, high end homes are doing well. It’s the middle- and low-end that have completely dried up.”
He said the sub-prime issue offers several lessons.
“There’s a lot to be learned with how to cope with problems like the sub-prime mortgage crisis.”
In addition to a stronger economy in 2009, Putnam said he believed Americans will soon solve other problems such as high fuel prices.
“I have no doubt that we’ll solve our fuel problems,” he said, “with new technologies or biofuel.”
And while he acknowledged that credit markets have tightened, he said those markets should improve next year.
“I don’t think credit can get any tighter than it is right now,” he said. “It’s pretty hard to get money, period. But 2009 will be better.”
A former baggage handler, Putnam began his career at United and also served as CEO for Braniff Airlines during that airline’s bankruptcy.
He joined Southwest Airlines in the late 1970s.
M. Scott Carter writes for The Norman (Okla.) Transcript.
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