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Leadership and Customer Experience: The Price of Indifference

Former TAP CEO, Christine Ourmières-Widener, has accumulated a series of dismissals, most recently being removed from Air Caraïbes and French Bee, according to a recent article published in the newspaper Expresso. The common denominator? A significant drop in Customer satisfaction. A significant drop in Customer satisfaction. Her management raises a fundamental question: to what extent can a focus on operational efficiency compromise the Customer experience and, consequently, the future of a company?

During her tenure at the Portuguese airline, she faced considerable challenges, from financial restructuring to human resource management during times of crisis. However, one of the aspects that deteriorated the most was the airline's perception among its passengers. Our airline, which for years was a source of national pride, became criticized for constant delays, cancellations without adequate support, a weak Customer service, and growing dissatisfaction among employees. The indicators spoke for themselves: rankings in quality assessments dropped, complaints skyrocketed, and Customer loyalty declined.

While financial and operational efficiency are essential, Customer experience is the true driver of sustainable growth for a company, especially in an industry so dependent on public perception and trust. What seems to be lacking in Ourmières-Widener’s approach is the ability to balance financial austerity with the need for a service that makes both Customers and, fundamentally, employees feel valued.

Cost control and cuts are often inevitable, especially in times of economic difficulty. However, it is crucial to understand the impact of these cuts on the potential degradation of Customer experience and employees’ sense of belonging. When this happens, the outcome becomes predictable: loss of trust, declining revenue, and increasing pressure on leadership. If Customers are forced to seek alternatives due to accumulated frustrations, the company enters a vicious cycle of market loss.

The impact of her management ultimately led to a controversial dismissal, as widely reported. The reason I choose to write about such a specific topic is that the pattern of Customer dissatisfaction appears to have repeated itself in her subsequent roles. At Air Caraïbes and French Bee, similar complaints were reported: ineffective communication with passengers, recurring operational failures, and a leadership that seemed detached from the real needs of the public. Quoting Expresso: “The deterioration of Air Caraïbes in terms of punctuality and service efficiency, with a loss of 56 ranking positions in one year, was among the issues that displeased shareholders.”

In short, I believe this case is worth reflecting on to acknowledge that business leadership cannot be guided solely by numbers. The perceived value for the Customer is as vital—if not more so—than profitability. In fact, I would argue that profitability follows from perceived value, while the reverse may or may not be true. Companies that neglect this aspect risk building a volatile and dissatisfied Customer base—detractors, in other words.

There is, however, a common element among the world’s great and well-regarded airlines: leadership that understands that every financial decision has a direct impact on Customers' and Employees' perception. Small gestures, such as clear and timely communication both externally and internally, can make all the difference.

Managing an organization is not enough—it is essential to understand who your Customers and Employees are and what they expect. An airline passenger wants more than just transportation: predictability, comfort, and respect for their time and money should be top priorities. Ignoring this principle paves the way for loss of relevance and, eventually, the downfall of leadership.

Customers are far more than just statistics or indicators—they are walking advertisements, and they talk… for better or for worse!

Article published in Jornal da Madeira on 06/02/2025