AIC Talk | Ram Menen Retreat for a stronger rebound (Part 1)

Our guest of this episode needs little introduction. Ram Menen, the pioneer in the air cargo industry, was the former Divisional SVP Cargo of Emirates. He devoted most of his career life to the Emirates Airlines, starting from grassroots and leading his team to be one of the world's biggest air cargo giants. Talking with Mr. Menen is a rewarding experience as his words reflect the wisdom of life experience. It is our honor to invite Mr. Menen and listen to his opinions on the post-pandemic outlook and his advice to the young.  

Question:

What's the outlook of the world for the post-Covid-19 period?

Ram Menen:

It will take time for the economy to bounce back. Short term there will be pain, however, we should not get lost in the doom and gloom. Once you have an ensured business continuity plans in place, aiming for sustainable development, take a step backwards to reassess, reboot, reset your own internal functioning to ensure your optimal efficiency. So when business starts to pick up, you are able to capitalize on the new opportunities that will present itself and be able to adapt to the new realities very quickly. 

Many countries have realized their dependency on China, the world's factory, and started seeking ways to reduce their risk by looking at "China+1" procurement strategies. This process is not likely to happen overnight. The future is bright as long as you have the right capacity at the right place, ready to take advantage of the timing. Indeed, China will lose some of its manufacturing activities. China has the best skills and resources available for the mass production that the world requires as the country's manufacturing operations are well established. In terms of attracting foreign direct investment, despite the challenges lying ahead, the country needs to expand the manufacturing activities and diversify them into different regions to mitigate the risks of shutdowns caused by the likes of corona pandemic. 

Question:

Could you talk about the crisis you came across in your career life?

Ram Menen:

Economic slowdowns are a part of life and are cyclical. Evolution and development on the technological front, where there is more transparency due to real time flow of information, gives an opportunity to bring predictability in the turmoil to help firms react to changes and adapt to new realities quickly.  

The current Covid-19 pandemic is a classic example of how it works. Those who were flexible and adaptable to quick changes did very well in containing the epidemic. The way China reacted is impressive. The country had contained the infection at a commendable speed which allowed the economy to resume and get back on its feet in months. 

When incidents like "9·11" happened, the world was not as transparent, so the influence on the world economy was unforeseen. The terrorist attack mainly shook the western world, but at the time, we at Emirates had no clue how it would impact our business. Air spaces were closed down; security become extremely harsh. The closure of air spaces affected passenger flights, which meant loss in cargo capacity as a large percentage of air cargo capacity comes from the passenger bellies. In terms of crisis air cargo becomes a vital link in transportation of urgent goods.

In my time, yes, I have gone through several downcycles as well as crisis situations. To name a few, in recent times, Gulf Wars I & II, 9/11, SARS, H1N1 the 2008 economic crash. 9/11 was a very challenging situation for us as roots were in the region where we were based. Security became of paramount importance. As a result, we had to deal with fast changing rules in the uncertain market conditions.

All these crises had an impact on every business. A lot of companies did not survive but those who survived came out stronger than ever. The 2008 crash was also quite severe. But we survived! When you are in a perfect storm, situational awareness and real time information flowing in 360 degrees is key to navigating through the turbulence. When you are in an unprecedented situation where old rules don’t apply, survival is all about managing the moment based on what can happen in the future. Crisis also presents new opportunities, and to successfully seize the chance depends on teamwork. If we are able to handle the situation with our customers to quickly adapt to the changing markets, we will stay ahead of the game.