Kolski has been screwing pilots longer than the most senior United Airlines flight attendant. He got his start working for Lorenzo at New York Air. His buddy Joe Leonard hired him to work at AirTran. Joe was no angel either.
March 8, 1999|By Julie Carr Smyth of The Sentinel Staff
Joe Leonard, the new head of Orlando's financially struggling AirTran Holdings Inc., has never shied away from tough assignments.
But So Far, The Man Described As The Heavy At Other Airlines Is Taking A More Low-key Approach To Turning Around Troubled Airtran.
One of the many tales told about his 30-year aviation career - which includes stints at American, Northwest and the sinking Eastern Airlines - involves Leonard grabbing a fellow executive by the lapels during a company crisis and screaming expletives in his face.
At the direction of some of aviation's most noted cost-cutters - Northwest's Donald Nyrop, Eastern's Frank Borman and industry pariah Frank Lorenzo - Leonard took on fellow executives, unions, even federal agents.
``To me, it's ancient history,'' said Leonard, a burly, mild-mannered man of 55, who has spent the past nine years in comparatively bland customer-service roles at Northwest and, most recently, aerospace giant AlliedSignal.
``What I am today,'' Leonard said, ``is an accumulation of what I've learned.''
But employees at AirTran remember.
When Leonard was named in January to succeed Chief Executive Officer D. Joseph Corr, the self-described ``turnaround specialist'' charged with bringing AirTran out of its post-ValuJet troubles, word spread fast.
Leonard has been described in books and other accounts as the heavy for Borman and Lorenzo at Eastern, the man who grabbed signed union contracts out of people's vest pockets and who rebuffed union workers by repeatedly postponing meetings that might have improved relations.
``He came on board as a brand-new guy, a staff vice president [for operations), and immediately was very aggressive about Eastern needing to cut pay,'' said Charlie Bryan, who headed Eastern's aggressive machinists union before the airline disappeared into bankruptcy. ``I would say he was very much inclined to be autocratic.''
It was in the hostile environment of Eastern's final days, Leonard says, that he was given the unfortunate nickname of ``Forklift Joe'' - a moniker that has long circulated among aviation professionals.
Those who use it claim Leonard was responsible, while he oversaw American Airlines' maintenance shop, for implementing a policy of using forklifts in the delicate maneuver of aircraft engine replacement.
``It's 100 percent fabricated and inaccurate,'' said Leonard. ``It came from people who were trying to disparage my reputation.''
Leonard was president of Eastern when Borman sold to Lorenzo, whose aggressive tactics engendered hatred in Eastern's ranks and ultimately failed the company as well.
Leonard said he hopes for better union relations at AirTran, where organized pilots, flight attendants and mechanics all have long-term contracts in place. He said he plans no significant job cuts.
``I'm really impressed with the work force here,'' he said. ``They're really energized.''
At the same time, Leonard doesn't deny being eager to cut costs. AirTran has posted losses for nine of the past 10 quarters and the comfortable $175 million cash reserve Corr inherited now stands at just $25 million.
Leonard said Corr succeeded in stabilizing AirTran, which merged in 1997 with the troubled ValuJet and began a push to distance the airline from events surrounding its 1996 crash in the Everglades.
``He rebuilt it, he recertified it, and he reconditioned it,'' Leonard said of Corr's tenure. ``I think he did what he came here to do.''
As soon as he arrived in his sunny corner office at Orlando International Airport, Leonard said that as a way to start cutting costs he ``whacked [projected) revenues down arbitrarily'' and adjusted the company's expenses to match.
His decisions included opting not to install expensive noise-reducing equipment on five of AirTran's 40 DC-9 jets, effectively grounding the aircraft unless passenger demand continues to improve. The FAA has mandated the installation of so-called ``hush kits'' on all commercial aircraft by the end of 1999.
Leonard said he has watched other executives make similar tough choices and succeed in strengthening their financial positions. In fact, he lists Northwest's pugnacious and penny-pinching Nyrop among his mentors.
After a three-year stint at Boeing Corp. following his graduation from Auburn University in 1967, Leonard spent 13 years with Northwest under Nyrop's guidance - first as an engineer and then as maintenance manager. He returned to Northwest as vice president of customer service in 1990, when Eastern's demise was imminent.
``He [Nyrop) pursued cost [cutting) with religious zeal,'' Leonard said. ``We were one of the few airlines at that time who believed we were in the business to make money as opposed to simply providing public transportation.''
Leonard said he also admires AlliedSignal's Lawrence Bossidy, the former vice chairman of General Electric Co. who is credited with Allied's startling reversal of fortunes in the early 1990s.
Bossidy was dubbed a Wall Street hero at the time, after he eliminated about 6,000 jobs, consolidated operations and found ways to increase productivity. Leonard ran Allied's aerospace marketing division from 1993 to 1998.
Leonard says there will be more to his reign at AirTran than the harsh reality of the bottom line.
``I bring a belief in people,'' he said. ``I believe in a flat organization where people are allowed to make their own decisions.''
He said he thinks a small carrier such as AirTran can succeed by being more nimble than its competitors and by excelling at customer service.
To that end, he will institute customer-relations training for flight attendants and gate agents and will encourage friendliness and a light-hearted atmosphere. He has also hired the same advertising agency that fellow low-fare carrier Southwest Airlines uses, and plans an image campaign ``that pokes a little fun at ourselves.''
And as a gesture to his new staff, Leonard recently instituted casual Fridays at company headquarters in Orlando.
``I was told I'd be a hero,'' he said. ``That lasted about half an hour.''