Aviation CEO Insights Part 6: “Four Decades of Transformational Leadership.” Peter Davies, CEO of Airline Management Group
Aviation CEO Insights Part 6: “Four Decades of Transformational Leadership.” Peter Davies, CEO of Airline Management Group
Peter Davies, CEO of Airline Management Group
In a recent interview, Peter Davies, CEO of Airline Management Group, shared insights into his career, leadership philosophy, and the evolving challenges facing airline CEOs today. With decades of experience in both private and government-owned airlines, Davies has developed a clear perspective on driving long-term shareholder value while balancing financial sustainability, customer service, and operational excellence.
“You are traveling through my factory…In most industries, the manufacturing process is hidden from the consumer. Aviation, however, is entirely different. When a passenger steps onto an aircraft, they are not just receiving a service; they are actively experiencing the production process in real-time. Every aspect of the journey—the aircraft, the crew, the boarding process, and even the airport experience—is part of a highly complex and visible production line. This is why airline management, must recognise the importance of every interaction.”
What Are the Key Learnings from Your Career?
For me, the most important lesson is that people are everything. No matter how technologically advanced or operationally efficient an airline is, it ultimately succeeds or fails based on its people—both staff and customers. I learned early on that creating the right environment for people to perform at their best abilities is the key to effective leadership.
I was fortunate to grow up in a disciplined environment where I was taught that leadership isn’t about pushing people through; it’s about pulling them through. One of my great uncles, a military officer, once told me: "The art of leading is to pull troops through, not push them through." That philosophy has stayed with me throughout my career.
Another critical lesson is that clear objectives and communication are non-negotiable. People need to understand what they are expected to achieve, and why.
What Does Good Leadership Look Like?
Good leadership is about setting a clear vision, creating the right conditions for people to succeed, and knowing how to communicate that vision effectively. It’s not just about strategy and direction—it’s also about performance, motivation, and adaptability.
I often say that a CEO is also an actor. Not in the sense of being disingenuous, but in the way that leadership requires deliberate messaging, presence, and influence. Like an actor on stage, a leader needs to convey a message with conviction—whether in front of employees, customers, or stakeholders.
Many times, leadership means to inspire confidence. I’ll give you an example. I once watched my grandson play rugby, and during half-time, he asked me how he was doing. His passing was terrible, but I told him, "Brilliant, your passes are sharp and flat—just like we practised." In the second half, every pass was perfect. A simple shift in perception and belief changed the performance.
In business, it’s the same - leaders must create belief, confidence, and commitment, even in difficult times. That’s not about dishonesty; it’s about influencing mindset and motivation.
How Can CEOs and the Airline Industry Drive Long-Term Shareholder Value?
Shareholder value is often misunderstood. People assume it’s just about maximising profits and minimising costs, but that’s not sustainable. It’s a delicate balance between financial discipline and investing in the right areas.
I’ve always believed that staff come first, customers second, and shareholders third. Some find this controversial, but the reality is, if you take care of your employees, they will take care of your customers. If you take care of your customers, your revenue and profitability will follow.
It’s the same with savings and product investment. Customers don’t remember how much an airline saved, but they do remember a bad experience. Investing in operational reliability, product quality, and staff training delivers sustainable shareholder value—not just quick financial wins.
A strong balance sheet, P&L, and customer satisfaction are interdependent. A strong P&L allows you to reinvest in the customer experience, and customer satisfaction ultimately drives long-term profitability. The challenge is short-term pressures vs. long-term strategy.
One of my most valuable experiences came when I was a young CEO. I had to present my business strategy using only three financial documents—a P&L, a balance sheet, and a cash flow statement—in just 20 minutes, followed by two hours of interrogation. That exercise taught me that if you don’t deeply understand the relationship between financial performance and strategic execution, you shouldn’t be running an airline.
Have the Views and Objectives of Stakeholders and the Board Changed Over the Last Two Decades?
Yes and no. The fundamentals haven’t changed, airlines still move people from A to B and try to make a profit. What has changed are the pressures:
Regulation is increasing, particularly around sustainability and taxation.
Technology has transformed both operations and customer expectations.
Stakeholders are more short-term focused—particularly in public companies, where quarterly financial results sometimes drive short-sighted decisions.
In my experience, it is important for board directors of an airline to have a deep understanding of the airline business. The long-term investment cycles required in aviation are unique and important to keep in mind when building a profitable business. Decision-making in airlines is not like in most other industries—you can’t simply pivot every six months when you’ve leased an aircraft for 12 years.
What remains the same is the need for a resilient, long-term strategy. The best airline CEOs understand how to balance financial, operational, and regulatory complexities, rather than being swayed by short-term pressures.
What Skillsets and Capabilities Do Future Airline CEOs Need to Manage a Profitable Airline?
The skillset has evolved with changes in technology, customer behaviour, and sustainability requirements.
In my view, the future airline CEO needs to be:
Financially astute – Understanding not just P&L, but long-term capital investment and cash flow.
Operationally aware – Knowing the airline inside out, from turnaround times to route economics.
Digitally literate – AI, automation, and data-driven decision-making are changing how airlines operate.
Resilient and adaptable – The industry is constantly evolving, and a CEO must anticipate and pivot before disruption occurs.
Empathetic and people-focused – As much as technology advances, the airline business is still about people. The human element—customer service, staff engagement, and leadership—will always be a defining factor.
The best CEOs are those who walk the factory floor—or in our case, experience the airline as a passenger through the entire customer journey.
Stay tuned for upcoming Aviation CEO Insights.
If you would like to discuss this further, or have a dialogue around talent management needs then please do get in touch with us at Alumni Global.
Hans Nilsson
Global Practice Leader Civil Aviation, Alumni Global
Lukas Hudec
Consultant Civil Aviation, Alumni Global
