SIA's marketing veteran who will join Millennium & Copthorne shares his views with Yeoh Siew Hoon.

After 30 years with Singapore Airlines, Gerry Oh, vice president-sales and distribution, is taking a leap from the aviation world to that of hospitality.

Oh will join his former boss, Michael Tan, at Millennium & Copthorne as senior vice president-global sales and marketing, effective October.

Oh however stressed that Tan, who is heading up the marketing charge for the Singapore-based hotel company, had nothing to do with his decision to join M&C.

"It was an independent decision," he said. "It's a new challenge and a new opportunity. They made me an offer I couldn't refuse."

Oh's departure from SIA comes at a time when several key figures have left the airline, including vice president of public affairs, Rick Clements, who left last month, and Sim Kay Wee, who has joined ValuAir as CEO.

"As my other colleagues have shown, there is life after SIA," said Oh, "SIA provides a very good background in marketing in terms of strategic planning and global perspectives.

"In my view, it is one of the most innovative airlines to work for. As long as it continues the spirit of enterprise, it will succeed."
M&C's owner, Kwek Leng Beng, has long voiced his desire to build a global brand akin to SIA, and that ambition was obviously behind his decision to hire Michael Tan, SIA's marketing chief, after his retirement from the airline.

Oh's joining reinforces that ambition. "This is an opportunity to work with the M&C team to develop a global brand."

Oh said that marketing principles can be applied across industries, be it in aviation or hospitality. "M&C is asset-rich and this will give it a very good foundation to grow a global brand. They have a clear sense of vision – this is what attracted me."

Asked if he was concerned about the company's "revolving door" reputation where chief executives have come and gone over the years, Oh dismissed the notion.

Oh said he was leaving SIA at a time of great change in the travel industry.

"Low-cost airlines are creating competition in aviation. The hotel industry is also seeing increased competition – companies are competing on a global scale.

"My belief is that low-cost airlines will stimulate a different market. While they will pose some competition for the bigger airlines, they will stimulate a new set of travelers – what I call LINTS (lower income, new travelers).

"Once this segment gets exposed to shorthaul travel, it will create aspiration for future travel – that's what I believe."

Oh said LINTS would have a positive impact on hotels as it would mean higher frequency, short haul trips. "What they save on air fares, they will spend on a better class of hotels."

The biggest impact of low-cost airlines would be on travel agents with Oh saying the writing was on the wall for agents to change their business model.

With low-cost airlines driving Internet distribution, "the experienced travel agent knows he has to adapt. The advent of the consortium – the bigger the better – is inevitable."