When Fernando Pinto
became CEO of Varig Airlines in January 1996,the job of turning the company around was compared to"raising the Titanic. "The company was behind in every way ,and employee morale was at an all-time low. Pinto's office did not even have a computer,just a typewriter .
Pinto immediately announced a plan to "revolutionize" the company. Focusing first on customer satisfaction,he gave bonuses to employees who met company goals of improved service. As a result, customer satisfaction improved from 80 to 95 percent during Pinto's first 18 months.To change the image of the company, he redesigned the old 1945 logo to amore modern-lookingimage.To increase Varig's profitability,Pinto had to sell aircraft, lay off 2000 workers, and discontinue unprofitable routes.Finally,Pinto brought Varig into the modern era by purchasing 5500 new computers, and he invested $30 million in software programs to increase efficiency.
Although Varig continued to have problems,the turnaround was considered a success. In 1999,Pinto was elected "Businessman of the Year" by Brazil's National Commerce Federation. Varig also won the World Travel Award for the best airline in Latin America that year.
