A crowd of 200 gathered yesterday morning for Aviation Week's Global Competitiveness Summit to listen and gain insight into the secrets of the world's best-managed airlines and aerospace companies.

"Neither rain nor sleet nor snow will keep people away" when competitiveness is the issue, according to Kenneth Gazzola, executive vice president and publisher of Aviation Week & Space Technology. Improving competitiveness is key to companies of all sizes as the wave of consolidation sweeps into second- and third-tier suppliers and airlines, Gazzola said.

Sharing their industry-leading knowledge with attendees were senior executives from the top three airlines and three aerospace companies listed in Aviation Week's recently published "Top Competitors" list. The rankings were the result of almost a year of work by an Aviation Week-led team that included research firm Black & Co., according to senior business editor Tony Velocci. The work included developing proprietary algorithms to create an index of competitiveness, he said. Mike Lowry, senior vice-president and research analyst at B&C, further detailed the methodology and next year's upgrade to a forward-looking index.

Good people, good vision, a good operating plan and the flexibility to change in response to events are the four keys to Spacehab Inc.'s success, said David A. Rossi during his presentation and the follow-up question and answer period. He is Spacehab's president and chief operating officer. Spacehab, which makes small laboratory modules for the Space Shuttle, topped Aviation Week's list as the Best Managed Small Company.

"There's no magic formula" at Smiths Industries, according to Graham K. Thornton, group director of marketing and business development. His 14,000-employee firm maintains strong financial controls and monitoring systems. It also continues to invest up to 10% of sales in research and development-even in bad financial years. Thornton believes technical innovation is another essential for a company's continued prosperity and growth, he said.

United Technologies, a repeat winner in the large company category, is continuing to reap the benefits of "fundamental changes" instituted during the early 1990s, according to Ruth R. Harkin, chairman of United Technologies International. The company now seeks input from its rank-and-file employees, the ones who know the products and processes best, Harkin said. Quality improvement is continuous and extends to scrutinizing supplier practices. A global outlook also is essential, she said. Although United Technologies is the 21st biggest largest industrial corporation in the U.S., some 60% of its employees and 60% of its revenues now are from outside the U.S., Harkin said.

The success of Atlantic Southeast Airlines, which led the "Best Managed Regional Airline" list, is the result of dedicated employees, conservative fiscal policy, and its code-sharing agreement with powerhouse Delta Airlines, according to Sam Watts. He's vice president of sales for the carrier. ASA recently ordered 27 more Canadair Regional Jets, bringing its order total to 57, including 12 new 70-seat -700 versions. The company's business objective is simply "to maximize the exchange of passengers between ASA and Delta," Watts said.

Timothy Hoeksema, chairman, president and chief executive officer for Midwest Express, said his airline has thrived by offering "the best care in the air." Midwest Express, which was ranked Best Managed National Airline in the Aviation Week index, has produced positive earnings for 11 years while increasing capacity at about a 15% annual rate. Its high level of customer service and non-stop service has resulted in an enviable 60% business passenger ridership. The airline now operates a fleet of 26 aircraft, mostly DC-9 twinjets.

Leo van Wijk, president and CEO of KLM Royal Dutch Airlines, said the airline has become the world's oldest airline still operating under its original name by pioneering a number of firsts. These include supporting industry-leading "open skies" bi-lateral agreements with the U.S. and UK. As the top executive at the carrier named Best Managed Large Airline by Aviation Week, van Wijk said KLM's strength is the ability to adapt and compete effectively in changing markets.

Anderson Consulting, Baan and the Society of British Aerospace Companies helped sponsor the global summit.

By Paul Proctor