Guideline to Help Transform and Grow

The National Airports and Air Navigation Company of Angola

-ENANA EP -

Doctoral Project

By:
Júlio César de Oliveira Furtado
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

Reframing Our Business

Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola
-ENANA EP-

By:
Júlio César de Oliveira Furtado

A project submitted to Breyer State University in partial fulfillment of the

Requirements for the Degree of Doctor of Business Administration
Aviation and Airport Management Consulting

Started October 2011

Faculty and Administrative approved by:

Katherine Moran (PhD)

……………………………………….…………………………

Instructor and Project Supervisor:

Dr. George Ackerman (PhD, JD, MBA)

………………………………………………………………….

December, 2016

i
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

LEGAL NOTICE
I hereby affirm that this is an original project and it is my own work except for where

the words, ideas, concepts or copyright materials have been specifically acknowledged.

Where I have failed to give due credits to any idea, concept or copyright material, I tender my

apologies to the legitimate authors or copyright holders.

ii
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

COPYRIGHT ©
All rights Reserved
Júlio César de Oliveira Furtado – 2011-2016

No part of this dissertation project is to be transmitted by any means, be it electronic

or otherwise without the prior consent of the author. Should this dissertation project arise any

interest for professional or academic discussion please contact the author through the emails:

[email protected].

The National Library of Angola

Cataloguing-in- Publication Data. Control Number: 7672 – 2016

Biblioteca Nacional de Angola

Depósito Legal: 7672 – 2016

Reframing Our Business - Guideline to Help Transform and Grow the National Airports and
Air Navigation Company of Angola (ENANA EP).
Author: Júlio César de Oliveira Furtado
Doctoral Project. Aviation and Airport Management Consulting
Course Advisor: Dr. Catherine Moran (Ph.D.), 2011
Instructor and Project Supervisor: Dr. George Ackerman (Ph.D. J.D. MBA), 2016
Citation: Furtado, Júlio César de O, Reframing Our Business: Guideline to Help Transform

and Grow the National Airports and Air Navigation Company of Angola (ENANA EP).

Doctoral Project, Breyer State University, 2011

Front cover design: digital art- photo transformation by Tchipaka.

iii
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

ABSTRACT
The liberalization of the air transport industry, the transformation and growth of

airports around the world have led many governments to revamp their national airports with

the purpose to improve their financial performance. Based on these outlook airport authorities

have been created as autonomous entities to run the national airport systems. Despite this,

many airports have not been able to improve their revenues over the years. This is what has

been happening in Angola with ENANA EP, the state-owned company in charge of operation

and management of the national airports and the air navigation services (ANS). Although

government has given the company autonomy to operate and manage the national airports and

the provision of air navigation services in a commercial fashion, the company has not been

able to earn a profit over the last decades. This issue stems from the fact that ENANA EP is

too narrowed focused on internal and administrative aspects of operations rather than focusing

on broader objectives and plans to generate earnings. Consequently, the company has come

on the verge of financial insolvency. In order to reverse the situation His Excellence the

Minister of Transports has commissioned the services of three different consulting firms to

restructure the company. Yet, after six years have elapsed since the implementation of various

restructuring programs, the company´s financial performance is still on the blink. The purpose

of this project was to serve as guideline to help the National Government of Angola, policy-

makers and the management of ENANA EP to reframe the company and its management

model on the basis of past restructuring failures.

Key words

Angola airport management restructuring, ENANA EP transformation guideline strategy,

Angola airport business development strategy, airport marketing strategy, aeronautics, airport
business model, Breyer State University aviation and airport DBA degree, Júlio César de O.
Furtado aviation doctoral project.
iv
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

TABLE OF CONTENTS

LIST OF FIGURES, ILLUSTRATIONS AND TABLES .............................................................................................. VII

LIST OF TABLES ............................................................................................................................................... VII

LIST OF ABBREVIATION ................................................................................................................................. VIII

ACKNOWLEDGMENT ........................................................................................................................................ X

FOREWORD .................................................................................................................................................... XII

NOTES AND CONVENTIONS USED IN THIS PROJECT........................................................................................XV

BRIEF PROFILE OF THE AUTHOR ....................................................................................................................XVI

MISCELANEOUS ............................................................................................................................................XVII

SECTION ONE ............................................................................................................................................. 1

1. INTRODUCTION ....................................................................................................................................... 2

1.1 PURPOSE, SCOPE AND STRUCTURE OF THIS PROJECT ......................................................................................... 4

1.2 STRUCTURE OF PROJECT ............................................................................................................................ 5
1.3 ENANA EP HISTORICAL BACKGROUND AND INSTITUTIONAL FRAMEWORK ............................................................. 7
1.4 ENANA EP ORGANIZATIONAL CULTURE ..................................................................................................... 11
1.5 GOVERNANCE AND STRUCTURE OF ENANA EP ............................................................................................. 12
1.6 BOARD OF ADMINISTRATION´S ROLE AND RESPONSIBILITIES ............................................................................. 12
1.7 STRATEGIC ROLE OF ENANA EP IN THE ANGOLAN AVIATION SYSTEM................................................................. 14
1.8 OVERVIEW OF PAST ORGANIZATIONAL STRUCTURE AND THE BEGINNING OF RESTRUCTURING INITIATIVES .................... 16

SECTION TWO .......................................................................................................................................... 20

2. CONCEPT OF ORGANIZATION AND STRUCTURE .................................................................................... 21

2.1 IMPORTANCE OF WORK STRUCTURE ORGANIZATION ...................................................................................... 23

2.2 CENTRALIZATION VS DECENTRALIZATION ...................................................................................................... 24

SECTION THREE ..................................................................................................................................... 27

3. RESTRUCTURING ................................................................................................................................... 28

3.1 WHAT IS IT AND WHY GO FOR IT? ............................................................................................................. 28

3.2 APPROACHES TO ORGANIZATIONAL CHANGES AND HOW TO DO IT...................................................................... 29

SECTION FOUR ........................................................................................................................................ 33

4. THE BUSINESS PROSPECTS OF AIRPORTS IN THE WORLD AND THE CASE OF AIRPORTS IN ANGOLA ...... 34

4.1 TAPPING THE POTENTIAL OF AIRPORT BUSINESS IN A SAFETY AND SECURITY CONSTRAINED ENVIRONMENT .................. 37
v
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

4.2 KEY FACTORS FOR ENSURING AIRPORTS BUSINESS SUCCESS .............................................................................. 39

SECTION FIVE .......................................................................................................................................... 42

5. UNDERSTANDING THE AVIATION AND AIRPORT BUSINESS ................................................................... 43

5.1 MARKETING CONCEPTS – WHAT NEEDS TO BE KNOW ..................................................................................... 43

5.2 TYPES OF MARKETING ............................................................................................................................. 43
5.3 THE TOOLS OF MARKETING ...................................................................................................................... 44
5.4 AIRPORT MARKETING – PURPOSE AND OBJECTIVES ........................................................................................ 44
5.5 AIRPORT PRODUCTS AND SERVICES ................................................................... ERRO! INDICADOR NÃO DEFINIDO.
5.6 SWOT ANALYSIS – WHAT IS IT FOR ? ................................................................. ERRO! INDICADOR NÃO DEFINIDO.
5.7 THE USE OF NEW TECHNOLOGY AND AIRPORT E-COMMERCE .................................. ERRO! INDICADOR NÃO DEFINIDO.

SECTION SIX ........................................................................................... ERRO! INDICADOR NÃO DEFINIDO.

6. REFRAMING OUR BUSINESS ................................................................. ERRO! INDICADOR NÃO DEFINIDO.

6.1 INTRODUCTION ............................................................................................ ERRO! INDICADOR NÃO DEFINIDO.

6.2 RATIONALE.................................................................................................. ERRO! INDICADOR NÃO DEFINIDO.
6.3 PHILOSOPHY OF OPERATION (BUSINESS MODEL) .................................................. ERRO! INDICADOR NÃO DEFINIDO.
6.4 VISION, MISSION AND VALUES STATEMENTS ....................................................... ERRO! INDICADOR NÃO DEFINIDO.
6.5 STRATEGIC GOALS, OBJECTIVES AND METRICS FOR MEASURING SUCCESS ................... ERRO! INDICADOR NÃO DEFINIDO.
6.6 SAMPLE GOALS TO ENABLE ENANA EP STRATEGIZE ITS ACTIONS ............................. ERRO! INDICADOR NÃO DEFINIDO.
6.7 ENANA EP NEW CORPORATE STRUCTURE AND MANAGEMENT MODEL .................... ERRO! INDICADOR NÃO DEFINIDO.
6.8 BRANCH COMPANIES AND MANAGEMENT MODELS .............................................. ERRO! INDICADOR NÃO DEFINIDO.

SECTION SEVEN ..................................................................................... ERRO! INDICADOR NÃO DEFINIDO.

7. GENERAL POLICIES AND PROCEDURES FOR APPOINTING AND STAFFING THE BOARD OF
ADMINISTRATION ......................................................................................... ERRO! INDICADOR NÃO DEFINIDO.

7.1 BOARD OF ADMINISTRATION ROLE AND RESPONSIBILITIES ....................................... ERRO! INDICADOR NÃO DEFINIDO.
7.2 CHAIRPERSON RESPONSIBILITIES ....................................................................... ERRO! INDICADOR NÃO DEFINIDO.
7.3 EXECUTIVE FUNCTIONS AND JOB DESCRIPTIONS .................................................... ERRO! INDICADOR NÃO DEFINIDO.
7.3 CRITERIA FOR STAFFING CEOS AND EXECUTIVE DIRECTORS ..................................... ERRO! INDICADOR NÃO DEFINIDO.

7.4 CONCLUSION............................................................................... ERRO! INDICADOR NÃO DEFINIDO.

1. EMERGING ISSUES ................................................................................... ERRO! INDICADOR NÃO DEFINIDO.

3.1 BRIEF OVERVIEW OF THE VARIOUS RESTRUCTURING PROGRAMS............ ERRO! INDICADOR NÃO DEFINIDO.
3.1.2 ANALYSIS ............................................................................................ ERRO! INDICADOR NÃO DEFINIDO.
3.1.3 ASSUMPTIONS AND REFLECTIONS ....................................................... ERRO! INDICADOR NÃO DEFINIDO.
3.1.4 MAJOR HIGHLIGHTS ........................................................................ ERRO! INDICADOR NÃO DEFINIDO.
3.1.7 END POINT ........................................................................................ ERRO! INDICADOR NÃO DEFINIDO.

8. REFERENCES AND BIBLIOGRAPHY............................................ ERRO! INDICADOR NÃO DEFINIDO.

vi
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

LIST OF FIGURES, ILLUSTRATIONS AND TABLES

1. Map of Angola depicting ENANA EP airport network infrastructure
2. Snapshot of ENANA EP board structure from 1999 to 2010
3. ENANA EP organizational structure from 1999 to 2010
4. The organizational architecture circle
5. (a, b) Airport Marketing Mix matrix
7. ENANA EP new business structure
8. ENANA EP new corporate structure

LIST OF TABLES
Table 1: Goals and objectives as metrics for measuring success

Table 2: LOCKED

vii
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

LIST OF ABBREVIATION
ACI Airports Council International
LIA Luanda International Airport
AIS Aeronautical Information Service
ANA Air Navigation Administration
ATAG Air Transport Action Group
ATC Air Traffic Control
ATRC Aeronautical Training Center
ATS Air Traffic Services
AVENAVS Aviation Engineering and Air Navigation System
BC Branch Companies
B2B Business to Business
B2C Business to Customer
BoA Board of Administration
BoD Board of Directors
BPR Business Process Reengineering
CAI Aeronautical Training Center – Centro Aeronáutico de Instrução
CBSO Chief Business Strategy Officer
CEO Chief Executive Officer
CFs Consulting firms
CFO Chief Finance Officer
CITO Chief Information Technology Officer
DLIA Director of Luanda 4 Fev. International Airport
DNAC Directorate of Civil Aviation
DT Director of Training
DORA Domestic and Regional Airport Branch Company
EEMD Electronics and Electrical Maintenance Department
EPD Engineering and Planning Department
FAD Finance and Administration Department
HBCSM Harvard Business Case Study Method

viii
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

IATA International Air Transport Association

ICAO International Civil Aviation Organization
INAVIC National Institute for Civil Aviation
LNIA Luanda New International Airport
LOGITRANS Logistics and Transport Services
RAMs Regional Airport Managers
REST Real Estate Development Branch Company
TARET Tourism and Airport Retailing Branch Company
TC Training Center

ix
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

ACKNOWLEDGMENT

First and foremost, I would like to thank the Almighty for guiding my way toward the

completion of this project. I also would like to thank the following individuals and staff from

Breyer State University for their unconditional help: the late Dr. David Kolenich (PhD) for

his time and patience in assessing my academic and professional background. Also for

providing me with the key resources required for navigating the University platform and its

system; and especially for supervising the Philosophy of Self and Research Methods courses.

Special thanks also to Dr. Catherine Moran (PhD) for advising me to take on the DBA

program instead of the PhD and for pushing me to submit the project proposal. Special thanks

are also due to Mrs.Rosemary Kolenich (EMBA) from the Finance Department for her help

and attention in accepting the payment terms I was up to by the time I started the course. I am

also very grateful to Mrs Katryn, the university student advisor for being sympathetic to my

queries and concerns. Special thanks also to those authors past and present, whose works and

research materials have served as the foundation upon which this project has taken flight.

Finally, my appreciations to Dr. George Ackerman (PhD JD MBA) who was to taken over the

responsibility to supervise this project. May the Almighty bless all of you.

x
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

DEDICATION
This project is dedicated to my late parents and brothers who have happened to depart

from this plane. Also to my children and to all aviation professionals of the world, be they

civilians or military: air traffic controllers, pilots, engineers, aviation security experts, airport

managers, aviation scientists, researchers, consultants and to all those business mavericks who

had the courage to challenge the status quo to help change the aviation industry.

xi
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

FOREWORD
The issues and themes raised and addressed in this dissertation project result from real

life experience known first hand by the author. The project is based on a retrospective analysis

and reflective thinking and experience drawn from various positions the author has held in the

past. In that capacity, he has had the opportunity to be in touch (either directly or indirectly

involved in their implementation) with major organizational projects ENANA EP was to carry

out and implement. Such positions have provided the author with various opportunities to: (a)

observe many facts, behaviors and changes that occurred along the years in the company and

(b) gain insight and information needed to develop knowledge and experience to grasp many

of the issues that impact(ed) the management and transformation of the company.

Consequently, what has been referred as “experience and positions held” serve as evidence

and data from which the author has derived some inferences to substantiate the issues that

have been highlighted and addressed herein.

Now, considering the scope and orientation of postgraduate degrees such as PhDs and

DBAs, the similarities and differences that lie between the two, a few words are worth

referring as related to this project. First of all, both PhD and DBA are the highest degrees that

can be achieved at universities.i Second, both have the same academic status and involve

several years of study and research leading to the title of doctor.ii Whereas the PhD is a

scientific or fundamental research iii degree that aims at creating theoretical knowledge to

explain a gap in existing theory or knowledge, acknowledged as significant by the scholarly

peer community;iv the DBA in contrast is an applied research degree. This means that a DBA

degree aim is to prepare graduates to carrying out research for solving contemporary business

problems considered as significant by scholarly and professional stakeholders. v

xii
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

Therefore, in terms of qualifications each degree prepares graduates for pursuing

different professional careers. Thus, whereas PhD qualifies graduates for career in academia

either as researchers or professors; the DBA in contrast qualifies graduates both as professors

at universities as well as for developing professional practice as organizational and business

researchers for solving contemporary problems being experienced by organizations. vi By this

it is meant that the DBA equips graduates with the knowledge to become professional doctors

in business and management or “leading experts” in their chosen field. Accordingly,

whenever organizations are faced with any problem that requires a solution, management will

pay professional researchers or expert consultants to study the problem in order to find the

solution to rectify the problem situation. vii So what does this means? For DBA graduates this

means having a competitive edge that will leverage their academic and professional careers

needed to carry out complex management and business projects such as consulting to business

companies or to advise governments in matters related to organizational and industry

problems. In retrospect, by taking into account what has been said concerning the similarities

and differences between the PhD and the DBA, this project fits into what a DBA is all about.

That is, it applies existing knowledge to tackle a contemporary management and business

problem the author has identified and proposed to address as part of the requirement to earn

the said degree. Accordingly, the project reflects the perspective of the author as a

professional doctor and consulting practitioner with many years of experience. In a nutshell,

the project is the outcome of long years of observations, hard work and reflections.

On the other hand, and due to the very nature of the project, it has not involved any

formal interview with people or staff from the company but the investigations, analysis and

thoughts of the author. Meantime, to make the project concept “acknowledged as significant

by the scholarly and professional community”, the author has applied critical thinking in his

analysis in order to reduce the likelihood of “questionable judgments” and personal bias. In

addition to that the author has also consulted and researched various sources of information

xiii
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

such as company documents, reports, business and management text books, articles, and

studies related to the subject matter. Yet, the author does not claim that this project is the

“silver bullet” that is going to solve ENANA´s deep rooted problems of business inefficiency.

To that end, scholars, social, business, and organizational scientists or otherwise are

encouraged to further investigate the issues addressed herein as well as the quality and nature

of this project so as to prove or disprove its merits. Appendix 1 provides the methodological

approach that has been utilized to develop this project.

The author,

Júlio César de Oliveira Furtado

Lisbon, October 14th 2016

xiv
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

NOTES AND CONVENTIONS USED IN THIS PROJECT

 This project contains original non-published copyright material and novel

ideas that can be applied in the aviation and airport industry for developing

business strategies such as, “airport marketing mix (AMM)” and how to use

Peter Drucker strategic business thinking approach for solving airports

management and business inefficiencies,

 Whenever concepts such as economic growth, business creation, business

development, business innovation or entrepreneurship is referred; a Druckerian

approach is implied as synonym of business transformation and growth,

 The words airports and airport organizations are used interchangeable to

denote the organization and management of large complex systems, with many

employees and with a lot of problems, viii

 The words industry and sector are used interchangeable,

 Wherever ENANA EP is referred, it means airport authority, airport operator

or the management of airports in Angola and the provision of air navigation

services,

 The initial reference books or bibliography referred to in the initial project

proposal has been slightly modified, extended or adjusted to reflect the latest

insights and requirements for completing the project,

 Whenever appropriate the author has endeavored to provide further

information in the appendix section in order to clarify a concept, a theme, an

obscure or diverging point of view.

xv
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

BRIEF PROFILE OF THE AUTHOR

 2011-2010 – Former cabinet director for the President and CEO of ENANA

EP,

 2003-2000 – Advisor to the board of administration of ENANA EP at the

Air Navigation Administration (ANAD),

 2000-1991 – Training director (TD) of ENANA EP and director of CAI –

Aeronautical Training Center (ATRC) also known as Centro Aeronautico de

Instrução (CAI),

 1990 -1983 - Instructor of English language courses at Centro

Aeronáutico de Instrução (C.A.I.),

Academic Qualifications and Professional Training

 2015-2007 - Associate Professor at Universidade Privada de Angola (UPRA).

The author has lectured Psychology of Organizations, Sociology of Work,

Organizational Behavior, Human Resources Management and English

language to undergraduate students, and has also delivered Strategic Marketing

workshops to final year undergraduate students,

 2003- Master of Business Administration (MBA), Rushmore University, CY

 2002 - Strategic Airport Management – Aviation Training

Development Institute (ATDI), Canada,

 1997- Senior Airport Management - International Aviation

Management Training Institute (IAMTI), Canada,

 1991 – Management of Aviation Training - International Aviation Training

Management Institute (IAMTI), Canada

xvi
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow The National Airports and Air Navigation Company of Angola-ENANA EP

MISCELANEOUS
 2008 - Bachelor Degree in Metaphysics Science (BMSc),
University of Sedona, US
 1996 – Advanced System Analysis and Design/O&M,

Suporte Empresarial (SE), Angola

 1993 - Diploma in Marketing Management (GECTI), Portugal

 1992 - English Language for Academic Purpose – High Advanced Level,

University of Delaware /English Language Training Institute (ELTI), US

 1989 - Advanced Instructional Techniques,

Institute of Flight Safety (IPV), Brazil

 1983 -Diploma in Electronics – (Occidental Schools), Portugal.

CONSULTING AND COACHING/TRAINING ACTIVITIES

 2017 – Has delivered strategic aviation planning workshops to the highest rank

staff (generals) of the Command of the National Air Force of Angola (FAN),

 2010-1997 - Carried out management and business consulting services to

various private and state companies. Business engagements included business

process reengineering (BPR), executive coaching in HR, sales and marketing

strategy, English language teaching and translations. Clients included but are

not limited to ENSA www.ensa.co.ao, Ghassist, www.ghassist.com,

Imogestin-Africom, www.imogetin.co.ao, Porto de Luanda

www.portoluanda.co.ao, DNAC now known as INAVIC www.inavic.co.gov,

SONAIR, Afriserve-Informática e Serviços Lda, INAMET, Movimento,

Consult - Escola de Aviação,

 Office of the Cabinet of the Secretariat of the Council of Ministers of Angola,

www.scm.co.ao and the Command of the National Air Force of Angola.

xvii
Breyer State University
 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

SECTION ONE
Business enterprises and public-service institutions as well - are organs of society. They
do not exist for their own sake, but to fulfill a specific social purpose and to satisfy a specific
need of society, community, or individual. They are not ends in themselves, but means. The
right question to ask in respect to them is not, What are they? But What are they supposed
to be doing and what are their tasks? ix

Breyer State University 1 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

1. INTRODUCTION

The National Airports and Air Navigation Company of Angola (ENANA EP) has

been facing major challenges over the last decades far beyond its leadership skills,

management strategy and business model. In turn, the National Government of Angola

(NGA) has been attempting for almost two decades to fix the company problems of

management inefficiency through various reforms and organizational restructuring programs

to no avail. In subsequent attempts to mend the situation, three consulting firms have been

commissioned to restructure the company. Upon diagnosing the company´s financial health in

2011, one of the three consulting firms concluded that ENANA EP was “technically

insolvent” and that by 2015 it would be unable to meet its financial obligations. x After

nearly six years have elapsed since the starting of the restructuring program and the

implementation of various reforms, the financial situation of the company is still on the blink.

On top of that Angola is facing today one of the most serious economic and financial

crisis since the 80´s owing to the spiraling down of oil price in the international market.

Because of this, government has been forced to reduce public investment programs (PIPs)

and public administration fund programs (AFPs ) and has urged public sector institutions and

ENANA EP as well to reduce costs and corporate expenditures by 30 per cent.xi Toward that

endeavor management of ENANA EP decided in March of 2016 to plunge into another

restructuring initiative by changing the company organization chart. As a result, some

departments and services have been eliminated or merged into others. Surprisingly, the newly

designed structure turned out to be confusing and fatter than before to the extent that the

function and responsibilities of some service areas overlap with other services, thus creating

Breyer State University 2 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

redundancies and unnecessary increases in administrative costs. Thereafter in November

2016, the president/CEO of the company set up a task force to take over the initial

restructuring program, which had been abandoned by the consulting firms in late 2013.

By mid-December 2016 the task force group issued a final report stating that their

action (aka) restructuring program, had been successfully accomplished. Nevertheless, the

company´s financial results did not see any improvements whatsoever. On the contrary,

financial situation has deteriorated and technical problems related to telecommunication and

operational safety have increased.

Now, as far as restructuring and management effectiveness are concerned no

organization is able to function with such misalignments. Can ENANA EP do otherwise?

In trying to make sense out of those issues, some findings have been uncovered as

related to the ineffectiveness of the restructuring of ENANA EP such as for instance: (a) the

literature on airport organization and restructuring is scanty; (b) the restructuring of airport

organizations is a very complex process because the airport industry is unlike any other

industry. For example, it does involve not only political and economic factors but also the

interactions of complex systems such as the delivery of aviation and non-aviation related

services such as telecommunications, air navigation system, air traffic control and aviation

meteorology; aviation security and other services to specific stakeholders. This feature of the

industry makes difficult to draw correlation between organizational restructuring in other

industries and the airports. xii Therefore, solutions copied from somewhere else or from

another industry may not fit in the airport industry without analysis and adaptation. In other

words, a model of change or restructuring that has been copied from other industry should be

done with cautious.xiii Furthermore, to effectively restructure an airport organization it is

required experience and competence in a set of skills such as strategic aviation and airport

Breyer State University 3 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

management, strategic business skills; industrial engineering, business process reengineering,

system analysis and design and also in behavioral sciences.

What is not known however, is whether the existence or lack thereof of a sound

theoretical and practical background in the knowledge areas just highlighted are likely to

impact the way management implements a change, a turnaround or a restructuring program.

On the other hand, it has been identified that both the strategy required to effectively

restructure and transform ENANA EP has been deficient and lousy.

1.1 Purpose, Scope and Structure of this Project

The main purpose underlying this project is to fill a gap in the restructuring projects

ENANA EP has been attempting to implement over the last decades at no avail. Also, it is to

provide insights to all stakeholders so that they can have a better grasp of the nature of issues

that permeate the company. Second, it is intended to help identify strategic issues that have a

bearing on the current and future performance of the company i.e., on its growth and

profitability. Third and most importantly is to serve as a guideline or manual to help the

National Government of Angola to reframe the company on the basis of past restructuring

failures. In light of this, and by way of reflective thinking the following issues have been

raised, which served not only to define the central problem as well as the building blocks for

developing the project:

 Why is ENANA EP in a state of financial crisis?

 Why management of ENANA EP has not been able to successfully

restructure the company?

Breyer State University 4 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

 What background and expertise consulting firms as well as ENANA EP staff

involved in the various restructuring programs should have in order to

successfully restructure the company?

 What factors should the National Government of Angola and the management

of ENANA EP pay attention to and which ones should spurn in order to

improve ENANA EP performance?

 Does the implementation of a knowledge base guideline help in the

transformation and growth of the company?

 To what extent a shift in management paradigm would transform the

company?

1.2 Structure of Project

This project has been structured into seven sections and each can be read on its own or

as integral part of the whole project. Each section addresses specific theme purposely

organized to: (a) raise critical issues that need special attention both from the National

Government of Angola (NGA) and from the management of the company and; (b) address

ways for mitigating some of the problems that hinder the transformation and growth of the

company. Therefore, in order to address the various issues laid out in the scope of this

project, each section has been organized as follows:

Section One. This section provides a general background of ENANA EP so that

readers have a snapshot on the nature of the business as well as the role the company plays in

the development of the Angolan aviation sector as well as on its economy. This section

provides readers with information on how the company have been organized in the past and

how it has evolved into its current structure and management model.

Breyer State University 5 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

Section Two. This section provides information and insights about concepts such as

structure and organization; centralization, decentralization, their differences and how each

model affects the management of an organization.

Section Three. This section deals with the issue of restructuring and explains what it

is and how to go about it. In this section readers learn how to identify strategic issues that

make restructuring programs easy to implement and manage.

Section Four. This section delves into the nature of aviation and airport business; it

explains what successful airports of the world have done to overcome the problem of business

inefficiencies. In this section readers learn that the airport business exists in a security

constrained environment. So, care should be taken into account when thinking about

implementing non-aviation business in the airport area.

Section Five. This section addresses one of the most important issues airport

organizations should pay attention to in order to maximize the potential of their

infrastructures, facilities or terminal buildings. In this section, it is provided the concept of

marketing, airport marketing and airport marketing strategies to help airport organizations

attract traffic, and how to market their services and products. This section ends by

highlighting the need to use new technology such as telecommunication and the internet to

help airports streamline their operations on one hand, and on the other hand to speed up

business transactions.

Section Six. This section is the corollary of the whole project. It provides the rationale

and a tentative model upon which the National Government of Angola can use to transform

ENANA EP and make it into one of the most successful and profitable companies in Angola.

Section Seven. This section is the last section of the project; it lays out the guiding

policy upon which the National Government of Angola can hinge its strategy for appointing

Breyer State University 6 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

and staffing the board of administration of state owned companies like airports and air

navigation companies.

It is expected that by considering some of the ideas, concepts and information

provided herein, the National Government of Angola, policy-makers and the management of

the company be sensitized to take appropriate actions as to:

a. Rethink the company´s strategy, organization and structure,

b. Identify strengths and opportunities, weaknesses and threats that help or hinder

the progress and growth of the company,

c. Re-frame the company so as to make it more business oriented by

implementing a business model capable of creating new revenue streams for

boosting profits.

1.3 ENANA EP Historical Background and Institutional Framework

ENANA EP (Empresa Nacional de Exploração de Aeroportos e Navegação Aérea EP)

is a state owned company responsible for the operation, maintenance and management of

airports and the provision of Air Navigation Services (ANS) in Angola.a The company was

set up on February 13th 1980 as an arm of former Direcção Nacional da Aviação Civil

(DNAC)b now Instituto Nacional da Aviação Civil (INAVIC)c. As a state owned company

ENANA EP reports to the Minister of Transports and also to the Minister of Finances.

Accordingly, it has to comply with the laws of government of Angola. Yet, and because of the

nature of services the company provides it has also to comply with the rules, standards and

recommended practices of international civil aviation organization such as ICAO and IATA.

a
Angola is a former Portuguese colony and is one of the richest countries in Africa. It is located in the Southern region of
Africa and gained its independence in 1975. The country borders with Democratic Republic of Congo in the North, Republic
of Zambia in the East, Republic of Namibia in the South and with the Atlantic Ocean in the West.
b
National Directorate of Civil Aviation
c
National Institute for Civil Aviation

Breyer State University 7 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

From early 80´s to late 90´s ENANA was considered one of the largest and most

profitable state companies in Angola. The company enjoyed a very good reputation locally as

well as abroad. Ever since then however, the company profitability has been spiraling down

due to management inefficiencies. In terms of legal form ENANA EP is a company with

management autonomy and its mission statement reads as follow:

To operate and manage public airports, aerodromes and the air navigation services;
to carry out studies, planning, development and operation of airport infrastructures
with public traffic in a commercial way so as to satisfy the needs of its customers xiv

Currently the company has approximately 1838 employees of which 20 to 23 per cent

of them are aviation qualified personnel working on the operation or technical areas such as

engineering and air navigation services; air-traffic control, radiotelephony operation, airport

operation; aeronautical information services (AIS), maintenance of airport infrastructure and

maintenance of air navigation equipment (NAVAIDS). Security and administrative services

take up the largest share of the company personnel i.e. about 77 per cent of the global

workforce.

As of now ENANA EP runs in total about 32 airports serving domestic regions of the

country including the international airport located in Luanda that caters both for domestic and

international traffic. In terms of infrastructure the 32 airports make up the national airport

network system, which is structured into three categories, viz.:

 Main airports,

 Secondary airports,

 Regional airports or aerodromes.

The first level airports or main airports are infrastructures designed to serve regions of

the country with more dense traffic; or simply to cater for international traffic. Luanda 4 de

Fevereiro International Airport (AIL) located in the capital city of the country and the new

Breyer State University 8 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

international airport (NAIL) which is to enter into service soon, constitute such kind of

airports. The second and third category airports are those infrastructures designed to cater for

domestic traffic. There is however, a distinction between the (last) two: whereas the former

i.e. secondary airport is designed to serve as feeder of traffic to cater for the demand of other

regions of the country; the latter however, is designed solely to cater for the traffic of the

region it serves. Essentially, the latter is a small size infrastructure with very few connecting

flights to the main airports and designed to cater for the needs of small aircraft or used either

for leisure or for flight training purposes.

Thus, ENANA EP airport network is spread across the entire country covering the

following regions or provinces: Luanda, Cabinda, Soyo, Mbanza Congo, Maquela do Zombo,

Uíge, Luena, Saurimo, Malange, N´zeto, Ambriz, Porto Amboím, Sumbe, Andulo, Bailundo,

Dundo, Huambo, Wuako Kungo, Benguela, Malange, Luzamba, Lucapa, Nzage and Cafunfo.

Fig.1 is a map of Angola depicting the various regions of the country and the corresponding

airports or aerodromes serving them. Table 1 in the appendix A provides details on the entire

airport network run by ENANA EP and the type of airports, existing runways and their

international codes as set by ICAO and IATA.

Breyer State University 9 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

Fig.1. Map of Angola and ENANA EP airport network.

Source: Plano Estratégico 2017. ENANA EP

Country capital city main airport

Breyer State University 10 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

1.4 ENANA EP Organizational Culture

Along the years ENANA has experienced various shifts in organizational cultured as a

result of different “normative beliefs” e that have been practiced by management. From early

80´s until late 90´s the culture of the company was characterized as a “constructive culture”f

in which work relationships were cooperative and supportive. However, and as a result of

various changes in management set up, the culture of the company has shifted to other forms

of normative beliefs.

As of 2007 until current days, the culture of the company can be characterized into

two major perspectives: one that can be characterized as “reactive-conventional and power”

i.e., a management culture that is authority and power centered and which seeks compliance

and adulation from employees and staff. By contrast, the organizational culture as perceived

by employees’ interaction and behavior can be characterized as “passive-conventional” i.e., a

value set based on thinking and behavior rooted on the belief of luck or as a result of

ingratiation.

Now, due to the management culture in practice, the philosophy of the company is not

empowering i.e., management does not endorse employees’ achievements neither success.

Thus, business ideas and initiatives staff or employees put forward to help the company to

create leverage are curtailed; or given to third parties for later implementation in the company.

This attitude shows that entrepreneurship is not part of management agenda and values.g

Consequently, the company suffers from lack of initiatives from staff and employees
d
The set of beliefs and rituals shared by members of a particular group and that distinguishes an organization from other
organizations. Robbins and Judge (2009, p. 552) characterize organizational culture by seven dimensions, which are:
innovation and risk taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness,
and stability. Robbins, S.P., and T.A Judge, Organizational Behavior, 13ed., Pearson-Prentice Hall, Upper Saddle River, N.J.,
2012.
e
Normative beliefs “represent the thoughts and beliefs about how members of a particular group or
organization are expected to approach their work and interact with others”, Angelo Kinicki and Robert
Kreintner, Organizational Behavior: Key Concepts, Skills & Best Practices p.1.
f
The kind of organizational culture that encourages staff and employees to interact with others in a positive
way, and to satisfy their needs to grow and develop. (ibid)
g
(ibid)

Breyer State University 11 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

concerning development of business ideas and projects. It is believed that the prevailing

cultural practice, mindset of management and dismissive view of employee ideas constitute

one of the major issues that have been stifling the transformation and growth of ENANA EP.

1.5 Governance and Structure of ENANA EP

The chief governing body of the company is the board of administration. The current

one is made up of seven members headed by a president of the board (PoB), who by virtue of

such a position also acts as CEO of the company; four executive administrators and two non-

executive ones. The president and board members of state-owned companies are appointed by

government.

Unlike other organizations and what is common practice in other parts of the world, in

Angola the board of administration of state-owned companies reports to the CEO instead the

other way around. In addition, CEOs of state-owned companies attribute to themselves

discretionary power to the extent to assign administrative and operational roles to members of

the board as though they were subordinates. Consequently, strategic decision making is made

by acclamation rather than by discussion and sound principle of analysis.

1.6 Board of Administration´s Role and Responsibilities

In its capacity the board of administration (BoA) is charged with the task of managing

and ensuring the daily activities of the company for attaining the company´s mission.

However, its major responsibilities fall into overseeing and approving a set of activities of

which the following ones stand out:

a. Set goals, objectives and policies of the company,

b. Approve the annual financial and economic plans and budgets of the company,

c. Approve and work out the accounts and management reports of the company.

Breyer State University 12 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

For the daily running of the company the president/CEO and executive administrators are

responsible for overseeing one or more operational areas. Each area is headed by an

executive director who reports to an executive administrator or directly to the president/CEO.

In addition, a staff of advisors is attached at the top of the pyramid (offices and advisors) to

aid the president/CEO in his or her duties. From 1999 to 2010 the company had a simple and

functional structure as depicted in fig.2 and Fig.3 Thereafter, the structure of the company has

been changed and redesigned more than five times.h

PRESIDENT
BOARD OF ADMINISTRATION
Executive Administrator Executive Administrator Executive Administrator Executive Administrator
Airports Air Navigation Engineering Administration & Finances

International Airport Air Traffic Services Electronics & Telecom Finance

Domestic Airports Communication Infrastructure Maintenance Accounting
DEPARTMENTS

Fire Fighting & Security Air Traffic Planning Power plant & electrical Purchasing, procurement
Maintenance
Commercial Dpt. Quality Assurance Human Resources
Administration

Fig. 2. Snapshot of ENANA EP board of administration structure as of 1999 to 2010

h
The number of restructuring attempts has been advanced by former director of the restructuring cabinet in an informal
talk with the author in May of 2016

Breyer State University 13 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

Presidpent
President &
of CEO
the
Boardg
Board od Directors
of Administration

Media Center Fiscal Board

Legal Cabinet Planning & Studies

Staff Internal Auditing

Airport Department Administration & Finance

Engineering & Maintenance Air Navigation Department
Department

Airport Security Airport Operation Telecom. & Power Plant & Air Traffic Navigation & Adm & Finance Human Resources
Maintenance Electrical Maintc Communication

Commercial LuandaIntern. Infrastructure, Quality assurance Training Center Accounting Purchasing &
Airport And Civil works Department Procurement

Aeredromos
I, II & III

Fig. 3. ENANA EP organizational structure as of 1999 to 2010 – design by the author

thor

1.7 Strategic Role of ENANA EP in the Angolan Aviation System

As a company that operates and manages airports and that also provides air navigation

services (ANS), ENANA EP has a strategic importance for the geo-economic development

and positioning of Angola in the Southern Africa Region. This is so because the company

plays a vital role both as driver of economic development on one hand, and on the other hand

as catalyst of the Angolan aviation system as it provides services and infrastructures to ensure

Breyer State University 14 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

that the business operations of local and foreign air carriers, and the safety of their flights are

accomplished successfully. In this case ENANA EP provides the following set of services:

a. Air Traffic Services including the provision of air traffic control,

b. Communication,

c. Search and rescue,

d. Meteorology – weather report,

e. Air-navigation aids,

f. Airport Security,

g. Airport and Aerodrome Operations

In order to provide any such services and to ensure the effectiveness of the national

aviation system, the company cooperates with other aviation and non-aviation related

government agencies such as Instituto Nacional da Aviação Civil (INAVIC)i, Instituto

Nacional de Meteorologia (INAMET)j, the Ministry of Interior and other state and

government agencies. By failing to understand this network of operation management of the

company might become problematic. For, much of the company´s operations have not only an

impact on the national air transport systems but also on other service sectors of the industry.

Therefore, if this relationship is not taken into account and well managed clash of interest

might arise among different stakeholders who might try to exert pressure on the company for

meeting their own needs.

Thus, by virtue of any conflicting interests that might arise, ENANA EP cannot by

itself make decisions to change aviation procedures, impose or loosen up service restrictions

or increase airport charges unilaterally. In any event, such measures would impact the

operation of several state and private interests as well as local and foreign air carriers that are

i
The National Regulatory of Civil Aviation (National Institute for Civil Aviation)
j
National Institute of Meteorology and Geophysics

Breyer State University 15 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

signatory of bilateral air transport agreements for scheduled flights. Other than these issues

many others have also to be taken into account when dealing with some local government

agencies if the company is to be run smoothly.

1.8 Overview of Past Organizational Structure and the Beginning

of Restructuring Initiatives

From middle 80´s to late 90´s ENANA was managed by a Director General aided by a

deputy director general and six department heads who were tasked with the responsibility for

overseeing the following areas or departments:

a. Finance and Administration Department (FAD), which looked after

administration, finance, accounting and human resources,

b. Air Navigation Department (ANAVD), which looked after air navigation

services (ATS) including the provision of air traffic control (ATC),

aeronautical information services (AIS) and radiotelephony services,

c. Electronics and Electrical Maintenance Department (EEMD), which looked

after the maintenance and the upkeep of telecommunication systems and

equipment, air navigation aids, power plant and runway lightening,

d. Engineering and Planning Department (EPD), which looked after construction

works, drainage and sewage, planning, studies and maintenance of

buildings/facilities and runways,

e. Luanda 4 Fevereiro International Airport Director (LIAD) who looked after

administration and management of Luanda 4 de Fevereiro international airport,

f. Regional Airport Managers (RAMs) who looked after the management and

operation of regional airports and aerodromes,

Breyer State University 16 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

g. Director of Training and of the Training Center (DT) who looked after the

training and development of technical personnel as well as the company´s

training policy.

In late 1999 the first board of administration was appointed and the structure of the

company changed. The board consisted of five members, three of them brought from outside

of the company, including the president of the board. Excepting the president each member

was tasked with the responsibility for overseeing the management of one of the following

administration area:k

a. Air Navigation Administration,

b. Airports Administration,

c. Administration and Finance,

d. Engineering and Maintenance Administration.

The air navigation administration responsibility was to oversee the air traffic services

(ATS), including air traffic control (ATC), planning and management of the air space,

aeronautical information services (AIS) and the operation of radiotelephony

(telecommunication) services and also to oversee the training center (TC).

Administration and finance was responsible for managing the accounting and finance

services of the company and for carrying out studies, planning and airport traffic statistics and

for overseeing the HR function.

Engineering and maintenance administration was responsible for construction works,

maintenance of infrastructures/facilities, drainage, sewages and for the maintenance of air

navigation aids (NAVAIDS) and power plant.

Breyer State University 17 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

In 2000, the board of administration of ENANA EP attempted a restructuring program

with KPMG to revamp its systems. Unfortunately, the project did not take flight. Later in

2004 government dismissed the board and a new one was appointed. The new board structure

consisted of five members and the structure of the board was as follows:

a. President of the Board

b. Air Navigation Administration

c. Airports Administration

d. Engineering and Infrastructure Administration

e. Administration and Finance

In 2007 the board was dismissed and a new one appointed. Again, with five members

and three of them brought from the outside of the company, viz:

a. President and CEO of the Board,

b. Air Navigation Administration,

c. Engineering and Maintenance Administration, l

d. Airports Administration,

e. Administration, finance and HR

In 2009 the board was dismissed and a new one took over the management of the

company. In this, a member of the former board stepped up as the new president and CEO.

The structure of the board consisted of seven members, viz:

a. President of the board,

b. Air navigation administration,

c. Engineering and maintenance,

Breyer State University 18 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

d. Airports administration,

e. Administration, Finance and HR,

f. Two non-executive administrators.

Subsequently in 2014 management of the company changed the structure of the board into:

g. President/CEO

h. Administration for Engineering and for Luanda 4 de Fevereiro International

Airport,

i. Administration for Regional Airports and Human Resources

j. Administration for Infrastructures

k. Two non-executive administrations

Breyer State University 19 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

SECTION TWO
To understand how organizations structure themselves, we should first know how they
function. We need to know their component parts, what functions each performs, and how
these functions interrelate. Specially, we need to know how work, authority, information,
and decision process flow through organizations xv

Breyer State University 20 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

2. CONCEPT OF ORGANIZATION AND STRUCTURE

An organization is the consciously coordinated efforts of two or more people who seek

to accomplish common goals and objectives. This concept revolves around certain principles

such as coordination of efforts, division of labor, delegation of authority and hierarchy. Thus,

a company organization is defined by its structure, the various functions and positions as well

as the hierarchical dependence between management and employees. Or, said in other words,

the organizational structure is the setting up of interrelated component parts that shows how

an organization functions. Without such an architecture, most organizations are bound to

confusion as management becomes unable to steer the company strategically. Figure 4

depicts the various elements that make up the organizational architecture an organization can

have and how they interact. Such elements or components are strategy, policies, procedures,

structure, system, climate and culture. Strategy determines how the organization is going to

accomplish results in the marketplace. This involves analysis and strategic thinking about

which market, product and services the organization should focus and serve and why. Policies

and procedures determine the rules and standards by which the organization is to function, i.e.

if lean, fat or bureaucratic; customer oriented or not. Structure describes the hierarchy of

authority and the chain of command in place i.e., who reports to whom and who makes

strategic decisions. Systems determine the overall functioning of the organization and how it

is set up, organized and staffed.

Climate refers to the work environment and the type of leadership and relationship in

place. Lastly, culture determines the set of beliefs shared by members of the organization, and

which ultimately, determines how the organization tackles strategic issues.

Breyer State University 21 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

Fig. 4 Organization architecture circle

Source: The Ten Day MBA

Now, before one is to embark on designing the structure of an organization it is

important first of all, to define its building blocks. xvi That is, its purpose and objectives, which

will determine the nature and the function of the business. In other words, management must

create a vision statement to set direction for the company. It is from the vision statement that

derives the corporate strategy, which will be supported by all those components depicted in

fig.4. Next would follow the design of the company organizational structure or its chart

depicting the various areas and how work responsibility is distributed in the company. This

allows all stakeholders to have a snapshot of the organization and thus understand the fit

between the strategy and other elements of the organization such as for instance management

and staff roles.

Breyer State University 22 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

On the other hand, whatever type of structure an organization is to adopt it should not

be carved in stone. It should be flexible enough to allow the organization to adapt itself to

different changing moments such as for instance, when restructuring or downsizing.

Concurrently, this gives management more room to reconfigure the strategy of the company

with the available resources, be they financial or human. For the purpose of illustration let us

consider ENANA EP as the case example. Since the company operates in an increasingly

dynamic industry as it is the airport sector, whatever structure management adopts (it) should

provide some flexibility for periodic changes. With this, any service or unit that does not add

value into the system is eliminated from the structure. Conversely, services or business units

that add value should be developed to create leverage.

2.1 Importance of Work Structure Organization

By work structure organization it is meant the systematic process top management of

an organization use to determine the functions and tasks needed to accomplish specific goals

and objectives. Three levels of organizational activities and responsibilities are commonly

used in order to organize management work or activities, which varies according to their

strategic, executive or operational roles. Thus, the strategic level represents the highest level

of responsibility concerned with the creation and definitions of investment policies and

corporate strategies. At that level the role of management is to define the activities that will

translate into practice the organization´s mission and strategies, such as the structure of the

organization, its functional levels; investment decisions, the financial and marketing policies.

The second level represents the next level of responsibility in the organization. At that

level management´s role is to define the goals and objectives of production, research and the

working methods and implement the broad policies laid down by top management. The third

level represents the operational level of responsibility in the organization whereby staff

Breyer State University 23 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

positions, their functions, selection, training and staffing are defined. Once the activities and

levels of responsibilities have been defined, management may opt for one of the following

model of management; (a) work specialization; (b) departmentalization and (c) centralization

or by decentralization. Each model affects the efficiency and effectiveness of the airport

organization and its performance as each requires a different management approach. For the

sake of this project only centralization and decentralization models of management structure

are briefly addressed.

2.2 Centralization vs Decentralization

By centralization it is meant the setting up of an organization so that all those

functions such as administration, marketing, sales and production are centralized. That is, they

are all performed within and for the entire organization. A centralized structure is the one that

provides the possibility for maximizing economies of scale and synergies across the

organization.xvii In contrast, a decentralized structure is one with different services or

business, each of which with autonomous management and decision-making capabilities

concerning operational strategies.

The distinguishing feature of decentralization is that it provides focused performance

assessment, allows innovation and places business strategies close to the market. xviii Yet,

regardless of type of model in use or to be used in an airport organization the following rules

provide some insights for maximizing the performance of the company´s activities: (a)

activities that are related or make the same kind of contribution should be put together under

the same division; (b) key activities should never be dependent on non-key activities; (c)

regardless of their complexities, technical activities should be assembled together under the

same division. Thus, services activities should be bundled together in one division and

operation activities bundled together in another division.

Breyer State University 24 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

On the other hand, depending on the size and ownership and model of operation an

airport company organization structure always mirrors the vision, mission and strategies of

the kind of organization it represents. Hence, if operated as a public service then it is

structured in such a way as to mirror that kind of service. That is, with many levels of

management. This feature can make the airport or the airport company organization too

bureaucratic. Nevertheless, an airport company´s structure does not have to be designed that

way. The fact is, in today´s highly competitive market environment both private and public

services institutions need to be organized and structured in a way to be responsive to an

increasingly demanding market. Likewise, airport companies that also provide air navigation

services can be decentralized into autonomous structures so as to make the business more

efficient. However, some factors need to be taken into account when designing the

organizational structure of an airport, as suggested by ICAO in its economic manual, viz:

a. The function and objectives of the airport,

b. The relationship between the various functions performed at the airport or

group of airports,

c. The number of airports and their geographic distribution and the way they are

operated i.e. as a group or as a network,

d. Airport size,

e. The type of traffic and the degree of financial autonomy of the airport

concerned.

Thus, one should bear that both the organization and structure of an airport should

always be designed to fit the tasks associated with the services it provides, and emphasize

commercial activities. It follows that in the case of ENANA EP as a public service provider

the company can have a structure similar to commercial companies; be profit oriented and

Breyer State University 25 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

offer the same quality of services as private businesses do. In any instance, the structure of the

company should be well thought out and designed not only for results but also for

performance.

Breyer State University 26 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

SECTION THREE
We are living in a world in which the only constant is change. Companies must respond
to rapid changes in markets and technology if they are to survive and prosper. Senior
executives must, in turn, lead a process of change that develops employee dissatisfaction
with the status quo and realigns the organization as a total system with new business
realities.xix

Breyer State University 27 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

3. RESTRUCTURING
3.1 What is it and How to Go About It

The restructuring of an organization is a change process. It requires efforts,

commitment and more hard work than usual. However, not all restructuring or organizational

changes initiatives are undertaken for the same motives or purposes. Some are undertaken for

strategic reasons such as modification of corporate and business strategy dealing with such

issues as financial crisis, market penetration, new product development or the implementation

of new technologies. In other cases, the change is meant to tackle administrative problems

such as organizational dysfunction, too much red tape and bureaucracy, or to tackle human

process management. In other words, the nature and type of change or restructuring varies

according to the nature and history of the company. In all accounts changes are either imposed

by external factors or generated internally. xx However, in so far as these issues have an impact

on the performance of the organization, management has no other choice than to fix the

problems in order to eliminate or minimize them.

Now, no change or restructuring program is to be initiated and implemented at the sole

discretion of anyone individual or entity just because he or she thinks the organization needs

some face-lifting. The point is: the restructuring of an organization is not an easy undertaking

i.e., it requires careful analysis of the reasons underlying the need for the change or

restructuring; the type of model or approach that suits the case, including the identification of

processes and the systems to be revamped.

Breyer State University 28 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

3.2 Approaches to organizational Changes and How to Do it

As stated previously, organizational restructuring initiatives can be undertaken by

different reasons and for different purposes. However, most restructuring programs can be

synthesized into two basic approaches: inorganic and organic. The first approach relies on

cost cutting, laying off of employees, downsizing, the selling of assets; mergers and

acquisition; divestitures or take overs of other organizations or businesses. This approach is

utilized whenever organizations need to slice costs, to break into new business territories and

to enhance its power base so as to gain a competitive edge. In addition to that, an inorganic

approach to restructuring is useful for cash recovery of organizations that are stalled in inertia

or when management is ineffective and complacent. The ultimate purpose of this approach

however, is the maximizations of profits and the increase of shareholder economic value. It is

therefore ideal for revamping organizations that are struggling to breakeven; running short of

cash and in need of positive financial results in the short run. Nonetheless, a word of cautious

is required with this approach, in that it can disrupt the company stability both in the short and

in the long run. For instance, talented and competent employees may be affected and laid off

as the result of downsizing.

The second approach can be considered as a soft approach, and it does not involve a

change in the identity of the organization. That is, the organization remains with the same

focus on its traditional core business, services and or products. The restructuring based on

organic model is meant to strengthen organizational competences with the purpose of

increasing sales, customer base, revenues, profits and quality of services. Most organizations

accomplish this by fostering a culture of shared values, respect for employees’ feelings,

emotions, needs and interests.

Breyer State University 29 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

Now, since any restructuring initiative requires the implementation of new systems or

models of working and managing, then the new working system may create frustration on

people as it may dull their perception of what is to come. Consequently, a critical element in

this process is to understand how the change process is to affect people´s life. Therefore, the

organic approach is fit for: (a) helping create internal synergy or a pool of intellectual capital

needed for creating new products and services, patents and innovations and (b) for enabling

employees to engage and commit themselves to the restructuring program enthusiastically and

without any fear of what is to come. With this, the organization is able to effectively make

decision about who should be asked and called upon to participate in the process in order to

help create leverage in times of uncertainty. By this it is meant that selection of right staff to

team up with the restructuring group is a decision that requires forethought. As Drucker has

aptly observed, “The crux of a program of action is the allocation of resources, and especially

the staffing decisions. Until they have been made and put into effect, nothing has really been

done.” xxi

By all accounts management should ensure that those who are to participate in the

restructuring initiative or program as change agents or leaders are knowledgeable in change

management process and have good leadership skills. In addition, management should also

ensure that change leaders´ mindset is aligned with the vision, mission, values and strategies

of the organization and that they are committed to making the restructuring program

successful. Conversely, if wrong staffs from the company, especially those who just want to

perform a function or are seeking a status are involved in the executing of the restructuring

process, chances are that the project will not succeed. Likewise, if wrong consulting firms

especially those that are not experienced and knowledgeable in the business and industry of

the client; in process (re)design, change management and leadership strategies are involved in

Breyer State University 30 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

the design and implementation of a change or restructuring program, the whole effort is

doomed to failure.

Studies by Zigarmi et al at Blanchard Companies show that 70 per cent of all change

programs and initiatives fail. According to the study, such a rate of failure is due to lack of

sound planning. Therefore, planning and management of change are in demand. Hence, the

choosing and selection of the right staff and consultants with change management competence

and leadership skills are essential for the successful management and implementation of any

restructuring program. Furthermore, for any restructuring program to be successful it must

have a communication plan to inform and to persuade all internal stakeholders of the need to

adhere to it. This is a step management should never ignore if it is to create commitment from

the staff on one hand, and on the other hand to improve the performance of the company. In

other words, since the issues of organizational restructuring and communication are

intertwined; then to really effect change, leaders must be skilled in communication strategy in

order to deliver the message properly.

Authors Hammer and Champy (1994) provide in their book Reengineering the

Corporation a three steps framework for tackling the communication issue when restructuring

(aka) reengineering a company. Thus, the first thing one should do is to present the case for

change or the “why”. That is selling the idea. Second, people should know the “what” or the

processes and systems to be changed. Third, management should explain to people “how”

their jobs will change and how the use of technology or the lack of it is to affect old habits of

thinking and working. Furthermore, everybody should be aware of the need to embrace new

ways of doing things in order to understand their impact on productivity and performance.

Therefore, if people do not know what lies ahead and what to expect from a restructuring or

change initiative they will not cooperate. On the contrary, they will sabotage the program

Breyer State University 31 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

either through resistance or inertia. It is clear that without addressing these issues no

restructuring program is to yield the desired outcome. Consequently, management should

have a set of strategies to cope with the issues of resistance and inertia.

A very effective strategy in any change management process is to create openness;

participation and commitment toward the program. This setting should be created at all levels

of the organization, from higher levels of management down to lower levels of the company.

A powerful tool management can utilize to create openness to the change process is to listen

to all company´s stakeholders in order to understand their feelings about the issue. In addition

to that, a rigorous training program should be developed to help in the changing process.

The training program should provide the tools and means necessary to help steer the

restructuring program so that all those who are (or will be) involved in the process as leaders,

change agents and all participants adopt new working methods and spread the word across the

company in order to share information. After that all employees should be educated for the

need to embrace the restructuring of the company. Otherwise, they will neither gain

ownership nor commit to the restructuring program. In a nutshell, the need for having skilled

staff in change management strategy and leadership is of paramount importance in order to

sensitize and persuade people to get on board of the program. This means that any change

demands leadership, i.e., someone who is able to provide direction and a vision for the

change; for motivating people as well as for soothing their anxieties.

Breyer State University 32 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

SECTION FOUR
Airports provide critical connections in the operation of the transportation system and
have a significant multiplier effect on the national and regional economies. To meet their
social, economic, operational, and environmental obligations in the face of the changing
conditions, airports often undergo dramatic transformations in business models, facilities,
and social responsibilities. The airport industry, like other industries, is challenged when
sudden or unexpected changes occur in the marketplacexxii

Breyer State University 33 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

4. THE BUSINESS PROSPECTS OF AIRPORTS IN THE WORLD

AND THE CASE OF AIRPORTS IN ANGOLA
Airports and air navigation services are specific and specialized aviation sectors. They

exist to serve the airlines, passengers and local communities. On their own right they have the

potential to become highly profitable and self-sustained businesses. Airports in particular are

the backbone of the air transport industry and catalyst of economic development for nations,

countries, regions and cities. Accordingly, their distinctive position may become a primary

asset in attraction of new manufacturing activities in certain geographic areas, thus enhancing

the region´s value proposition. xxiii

The foregoing outlook implies that aviation business leaders, airport executives or

directors must be skilled in a range of competencies needed to understand the nature of issues

that impact the delivery of services to cater for a vast array of stakeholders. Graham (2008)

furthers that the focus of airport management should be on the economic, commercial, and

planning areas at a strategic level. Put differently, airports are “big business” and as such they

have to be managed accordingly. Surprisingly, in many parts of the world airports are simply

considered as part of the national infrastructure and managed the same way as “roads and

public transports”. That is, not geared for competitiveness. By taking this approach, many

governments and airport companies fall short to take advantage of the potential airports offer

to generate business or to transform them into economic assets of certain regions. By this it is

meant that in terms of economic development and business growth, this represents a short-

sighted view of what airports are all about. Indeed, to many government authorities, airports

are considered no more than just a part of the national infrastructure or as symbols of national

pride or as political feats. However, the value of airports is of a strategic dimension far

Breyer State University 34 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

greater than the symbols they carry or represent as engineering or architectural projects or

even as political feats. Indeed, one could argue to what extent is the worth of an airport

infrastructure if it does not attract business nor does it generate enough profits to cover its

operating costs. Or, one might also ask, what is the worth of an airport infrastructure for

winning votes if it does not generate jobs nor does it improve the social wellbeing and quality

of life of the inhabitants of the region it serve? Answers to those issues require governments

to revisit their strategies concerning the role airports have to play in the social and economic

development of their countries. Otherwise the potential they offer to generate business and

growth might simply turn into government liabilities.

This situation mirrors what happens in Angola and with ENANA EP, the state-owned

company responsible for the operation and management of the national airports and the

provision of air navigation services (ANS) to all aircraft that fly or overfly the national

territory. For example, whereas some airports in Angola could help leverage the economic

potential of some regions of the country, both management of the company and local

government authorities simply do not capitalize on the “power of attraction” of such airports.

Furthermore, although ENANA EP internal statutes states that the company is of a

commercial concern, the truth of the matter is that it operates otherwise. In fact, no much

business is generated by the company as it is focused on short term perspective and on

administrative aspects of operations and procedures rather than focusing on strategies to

generate revenues and profits. Consequently, the majority of airports in Angola incur heavy

losses as they drain funds from the company in order to keep their operations running. On top

of that some authorities argue that the focus of airports should not be on profits but on safety,

instead.

Breyer State University 35 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

Although the latter issue is of vital importance for ensuring the safety of the national

aviation system and security of the “traveling public”; the line of reasoning is nonetheless,

misleading. First of all, it is obsolete as it stems from a misconception rooted in the thinking

that public sector institutions should not be profit oriented.xxiv Hence, airports should not be

commercial either. Second, that thinking was espoused in a time when independent airport

managers had no body of knowledge to call on to aid them in turning subsidized airports into

profitable ones. xxv

Today a diverse array of disciplines such as financial accounting, strategic

management, business strategy or marketing can be utilized to aid airport management turn

“loss making” airports into thriving businesses. Therefore, airports companies in general and

ENANA EP in particular should seek ways to run their airports and services more strategically

in order to generate profits. In other words, focusing on internal aspects of operations is not a

good prospect for the long run as it may limit the range of services airports could provide as

well as the growth potential in terms of revenue generations. In other words, one can say that

the traditional way to manage public services, particularly airports, is no longer compatible

with the economic and business environment of our days, in that:

The business model for airports has changed. The regulatory framework for airport
operations, planning, and capital projects was instituted when the airport’s principal
mission was to provide basic infrastructure for airlines and their aeronautical users.
Today airports support a wide array of businesses, more like an industrial or
commercial center, or in some cases, a small city.xxvi

The foregoing outlook forewarns airport owners, airport companies and their

management that gone are the days when they had to rely on government to subsidize their

operations. Today airport companies have to do their own growing, which implies that they

must be profitable and pay attention to the return on investments and ways to make facilities

pay.xxvii Consequently, a fundamental turnaround in the way to manage and operate airports is

Breyer State University 36 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

(then) required. In other words, airports have to be innovative and business oriented in order

to generate new revenue streams. Therefore, a shift in paradigm is required.

4.1 Tapping the Potential of Airport Business in a Safety and

Security Constrained Environment
As noted earlier in the preceding sections, some authorities are not happy with or

loathe the idea of airports being operated for profits on the grounds of safety and security

concerns. These have been indeed, the views espoused by airlines and which used to be

shared by IATA. Their concerns have been that the search for profits might drive airports to

neglect their main purpose, which is of serving airlines and passengers in a safe and secure

way.

Although the argument sounds judicious it does not lend itself to prevent airports from

wanting to change the rules of the game. Furthermore, commercial airports operate under the

same regulatory incentive for safety as do traditional airports. In other words, inasmuch as

safety of operations and security of the “travelling public” is not jeopardized; airlines should

not fear anything just because airports have awakened for business. Otherwise airlines flying

to all those commercially driven airports would be at stake, which is not the case. On the

other hand, when airports take on a business proposition they tend to focus more on the non-

aviation side of the business rather than on the aviation side. Concurrently, this (may) lead to

the reduction of airport charges, such as landing, taking off, aircraft parking and runway

lightening fees levied on to the airlines. So, airlines should be happy with these moves and

encourage airports to further actions.

Now, considering the fact that airports infrastructures are of capital intensive nature

requiring a long lead period for their amortization, then any initiative to increase profits do

really matter. Otherwise, airlines should be charged or required to pay part of the investment

Breyer State University 37 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

tied up on the improvement of any airport infrastructure. However, the first alternative sounds

pretty much appealing for airlines, in that any investment associated with the creation of non-

aviation business falls onto the airports. Consistent with this view, airports or airport

companies should stop being passive players in the air transport value chain. Instead, they

should be proactive so as to modify the competitive dynamics of the industry by influencing

the needs and wants of the airlines, the passengers and the communities they serve. For that

matter, airports business leaders and executives must create innovative business models that

can capture and deliver value to all stakeholders. In this regard an entrepreneur approach to

airport business could be pursued such as by: (a) entering into new or totally non airport

related activities; (b) introducing new products and services; (c) creating new forms of

organizations or by exploiting new raw materials. xxviii

On the perspective of Peter Drucker,m that would entail tackling three facets of

economic dimensions. First, make the present business effective. Second, identify the

potential of the business and third, transform the current business into a new one so as to

address the needs of the future. By taking Drucker´s approach airports value proposition can

be modified so as to cater for other business needs and interests and all the while keep their

core functions without risking them. In other words, as long as airports core purpose does not

lose its roots or core functions, then seeking new sources of revenues or the maximization of

non-aviation revenues is a must. This is exactly what major airport companies of the world

such as British Airport Authority (BAA plc) or airports such as Schiphol in Holland, Dubai

International Airport, Icheon International Airport in South Korea and Airports Company of

South Africa (ACSA) just to name a few have done. Those airports or airport companies have

realized that a focus on internal and administrative problems and managing their airports as

usual would not take them anywhere. Consequently, they overhauled their organizations by
m
Managing for Results, p.4, 1993

Breyer State University 38 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

adopting business models of operation consisting on developing and incorporating a variety of

retail shopping and leisure venues into passenger terminals on one hand, and on the other

hand by developing landside areas for hospitality, entertainment, offices and conference

centers to enable them to boost profits. These are certainly, excellent examples of sound

business model worth considering by all those airport companies that are just grappling to

break-even as is the case of ENANA EP.n

On the other hand, if one considers facilities concessions for instance, they alone can

provide enough revenues to turn airports into thriving businesses. According to Wells (1999)

concession facilities account for more than 50 per cent of total revenue larger airports

generate. Surely, this promising percentage is enough to encourage airport companies to look

beyond their current practice if they are to find ways to improve their financial performance.

4.2 Key Factors for Ensuring Airports Business Success

Regardless of type of airport organization or size, to be successful airports require an

entire different management business model and approach; organization structure and

mindset. First of all, it is required that they have a vision to provide direction and purpose to

the business. Second, it is required that management creates an environment that fosters

entrepreneurship, accountability and management transparency. Third, for any business to be

successful it has to be managed based on sound strategies.

Entrepreneurship is important because it is the source of innovation, business creation

and transformation. This is vital for helping airports to attract more airlines and to be in the

frontline of the business. In effect,

“without entrepreneurial spirit there is less opportunity for competition, for fare
reduction, for route development, for alliances, for efficiency gains and for airports
to take marketing initiatives.”xxix

n
According to one of the various consulting firm´s report on the status of financial health of ENANA EP, in 2011
the company was breaking even and on the route to insolvency.

Breyer State University 39 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

Indeed, without this mindset most businesses get stuck in the traditional way of doing

things. For, lack of entrepreneurial spirit has been one of the major causes of inefficiencies

and unprofitability of many businesses, and airports are not any exceptions.

Accountability it is important in order to create public trust in the eyes of consumers

as well as within the community. Therefore, management must be not only accountable for

their actions but also be responsible towards keeping a safe and sustainable environment. As

for transparency, it is important in order to build management credibility in the market as an

organ that respects the laws governing commerce and the industry. Last but not the least,

airport companies should have an organization structure that hinges of the pillars of sound

strategies, management competency and talent. Strategy determines the focus of the business

such as on what, why, how and where management is to deploy resources. Concurrently,

competence and talent are pre-requisites for the successful achievement of goals, which

implies that in order to transform “loss making airports” into profitable businesses they

should be staffed with people with a very good track record in business and aviation

management in order to match the functions they are to discharge. Why is this important?

The answer lies in Drucker´s strategic approach for running and managing a firm, a

corporation or any kind of business venture, viz:

firms can only create new products or services if managers, executives and staff
have the expertise to develop new markets for any new products as well as to
maintain a steady market for the old xxx

These are critical issues management of airport companies should not overlook if they

are to add new incremental commercial experience needed to reinforce “the power of

attraction” of their airports.

Now, the pursuit of any business opportunity in whatever industry requires well

defined business objectives in terms of business performance and planning for future growth;

Breyer State University 40 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

not regulations or political clout as happens in many organizations as is the case with

ENANA. For, “growth and profits are not accomplished by fiat”. In retrospect, management

must be “savvy” in order to understand the internal and external environment and thereby

create strategies that are responsive. xxxi Unless this is done no airports company will be able

to create leverage, let alone grow and prosper. Even if again and again it is driven into

restructuring as has been the case with ENANA EP.

Breyer State University 41 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

SECTION FIVE
Airports today must market effectively to attract activity and achieve financial
self-sufficiency.

Breyer State University 42 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

5. UNDERSTANDING THE AVIATION AND AIRPORT BUSINESS

5.1 Marketing Concepts – What Needs to be Know

Marketing is a management philosophy and business tool that involves a set of

techniques, principles and strategies needed to make any business successful. This is

accomplished by identifying the needs and wants of customers so that the company can create

a product or service to satisfy those needs. The essence of marketing concept hinges on the

principle that business should focus on “how to better satisfy customers”. This principle

entails studying the needs and wants of the market in order to identify its potential. This is

called market research. Thus, without knowing the market and its potential organizations run

the risk to tie up large amounts of money to create products or services that are not in demand

or that the market does not need. Therefore, market research is the starting point for

discovering untapped opportunities in the business environment.

5.2 Types of Marketing

As a business tool marketing is used in two different ways: first, in a business to

consumer (B2C) approach; and second in a business to business (B2B) approach. The first

approach happens when the organization is focused on serving the customers. The second

approach happens when the organization is focused on serving other organizations or

businesses. For instance, a financial institution serving its customers is involved in a business

to customers’ (B2C) approach. When the same financial institution is serving other

institutions, organizations or business it is a business to business (B2B) approach. The same

rationale applies to airports when they are serving airlines. If airports are serving the

customers or the passengers then that is a business to customer (B2C) approach.

Breyer State University 43 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

5.3 The Tools of Marketing

In order to offer a product or service to a specific market or to create demand for

certain product or services, four major elements are used for that purpose. These four

elements make up the tools of marketing, better known as the marketing mix (MM) or simply

the four P´s such as, Product, Price, Place and Promotion. By knitting together the four P´s in

certain ways one can create effective strategies to capture a market in order to sell a product

or service. In this case, the first thing to do is to promote the product through different media

channels so that customers and consumers (airlines, passengers, meters and greeters etc.) get

awareness about the quality, benefits, price and the locations where the product or service is

available or is being provided. However, a certain rationale must be followed if the process of

creating and making decision about the MM is to work effectively. Otherwise, a waste of time

and resources might be squandered along the way.

5.4 Airport Marketing – Purpose and Objectives

Drawing from the previous concept one can say that the purpose of airport marketing

is to help turn “loss making airports” into thriving businesses. This means that in order to

induce profitability airport companies in general and ENANA EP in particular, they should

create a bundle of products or services capable of capturing and diverting traffic, routes, cargo

and mail to their airports or to pursue new air services. This can be accomplished by creating

a marketing strategy plan that looks into:

a. Product or service design and development,

b. Pricing and revenue management,

c. Distribution channel selection and control.

Once each category is defined and devised, the company is ready to promote and sell its

products, services or bundled them together for a price.

Breyer State University 44 of 64

 Júlio César de Oliveira Furtado
Reframing Our Business - Guideline to Help Transform and Grow the National Airports and Air
Navigation Company of Angola-ENANA EP

Breyer State University 45 of 64

ii
University of Liverpool-online
iii
Sekaran ( )
iv
University of Liverpool-online
v
(DBA vs PhD university of Liverpool) (www.university –liverpool-online.com).
vi
Sekaran, pg. 6, 1992
vii
(ibid)
viii
Ashford p.6
ix
Peter Drucker, “Management, Tasks and Responsibilities”
x
McKensie report on the status of ENANA EP financial health,2011
xi
According to a speech of His Excellence the Minister of Transports delivered in March 2016.
Source:TPA – Public Television of Angola , March, 2016
xii
ACRP_Report_040
xiii
p.9 aci (?P. 3 – ACI Policy and Recommended Practices handbook – Seven Edition – Novenber 2009)
xiv
Company Statutes, 2010 (author´s own translation)
xiv
Normative beliefs “represent the thoughts and beliefs about how members of a particular group or
organization are expected to approach their work and interact with others”, Angelo Kinicki and Robert
Kreintner, Organizational Behavior: Key Concepts, Skills & Best Practices p.1.
xiv
The kind of organizational culture that encourages staff and employees to interact with others in a positive
way, and to satisfy their needs to grow and develop. (ibid)
xiv
“an organizational culture structured on the basis of authority inherent to member´s position. This kind of culture
fosters a working environment in which performance is oriented to obedience to rules and
regulations; to conformity and the maintenance of the status-quo” (ibid)
xiv
(ibid)
xv
Henry Mintzberg in “The Structuring of Organizations”
xvi
Peter Drucker with Joseph Maciariello, Management, p.359.
xvii
(Ibid)
xviii
(Ibid)
xix
Pg 537 handbook of principle of org. behaviour
xx
Eister Cameroon & Mike Green, Makins Sense of Change Management, p. 54, 2009, 2nd edition
xxi
(Drucker,1986, p.149
xxii
David Jarac, Airport Marketing, p.2 ACRP REPORT 20
xxiii
xxiv
Drucker,
xxv
Rigas Doganis, The Airport Business, p.(…),1999
xxvi
ACRP Synthesis 19, p.1, 2010
xxvii
De Neufeville and Odoni, Airport System: Planning, Design and Management, p. (), 2003
xxviii
William ByGrave, The Portable MBA in Entrepreneurship, p.(…), 1997
xxix
Tonny Kazda et all, Airport Design and Operation, p.(), 2007
xxx
Peter Drucker, The Practice of Management, p. 105, 1993
xxxi
David Aaker, Developing Business Strategies, p.v, 1998