LEADERSHIP CORNER
Pacific Air Cargo owner gained respect in field dominated by men
Interviewed by Debbie Sokei
Advertiser Staff Writer
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Title: Owner and chief executive officer of Pacific Air Cargo
Organization: Pacific Air Cargo provides air cargo service six days a week between Los Angeles and O'ahu and once a week to Samoa and Guam.
High school: Central High School, Kansas City, Mo.
College: Didn't attend
Breakthrough job: I had a beauty salon business and ran a bar with my brother. I've been pretty much self-employed for the past 30 years.
Life-changing event: When I got involved in the freight-forwarding business in Phoenix in 1985. Then I came to Hawai'i because a friend of mine who was in the florist business was having problems shipping flowers out. In 1988, I started American International, a charter business, flying out of Hilo. One of the reasons why the company was successful was we did it backward. Most people tried to get charters to Hawai'i and there was a lot of it, but there really wasn't much business chartering to the Mainland and that was the part I did first.
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Q. How did you start American International?
A. I didn't have the capital to start my own company, so I formed a partnership with Conrad Kalitta. He had the airplanes and I ran the business. Basically, what he did was he gave me a credit on his airplane and it just continued to go from there. Kalitta owned 51 percent of the company. Then in 1999 we sold the company to Kitty Hawk, an airline cargo company, and I quit working for almost three years.
Q. What did you after you retired?
A. I found out I couldn't play golf or tennis and Kitty Hawk wasn't good in running an airline and went bankrupt three years later. So I bought my noncompete (clause) out of bankruptcy and started Pacific Air Cargo.
Q. How much did your noncompete cost?
A. It was a lot. I forfeited the debt they owed me, and it was in the millions.
Q. When did you start Pacific Air Cargo?
A. May 5, 2000, and we're basically trying to rebuild the same business we had before ... I had $1 million in capital, which I got from the sale of American International.
Q. Did you start the company by yourself or with partners?
A. I started this business on my own ... We have two planes and will be getting a third one. It'll be a smaller plane, a 727 freighter, and it will be used to provide interisland service and fly to Kiribati and Samoa.
Q. How is the company doing financially?
A. We have been doing very well. ... We are in the process of building another cargo facility and getting another plane.
Q. What were some of the difficulties you encountered as a female business owner?
A. It was much harder before when I started my first business because I didn't know anybody and I didn't know the market. It was difficult to make people realize that I was serious about what I was doing. The hardest part was building credibility and getting people to believe in you. When I started my first company everybody that I talked to said it wouldn't work. The second time was easier because I had a base of customers, friends and people I could call on. I had a proven record.
Q. How difficult was it to start your business in a field dominated by men, and to establish a working relationship with them?
A. It was very tough. Men smile when you tell them to do something. Then when you turn around, they start laughing at you. I had to prove to them that I knew what I was doing. I learned to drive a forklift, worked all night and carried heavy boxes by myself in the beginning. But now I have gained their confidence and respect and they would do anything for me and the company.
Q. What were some of the most unusual items you've transported?
A. We brought in a limousine, a sloth, a killer whale, dolphins, a gorilla and a helicopter. We move a lot of animals because we have the room and the caretakers can stay with them. We also bring in a lot of motorcycles for people who are coming to Hawai'i on vacation.
Q. Who are some of your clients?
A. The U.S. Postal Service, Emery Worldwide, Hawaii Air Cargo and the military. We also provide connecting cargo service for Japan Airlines, Korean Air, All Nippon Airways and China Airlines.
Q. Who are your competitors?
A. The commercial airlines, because they can carry cargo much cheaper than we can and right now the cost of fuel has gotten so high that it has been a tough problem for us.
Q. What is your company doing to cope with the rising fuel cost?
A. We are trying to economize in other ways. We're not hiring and we're trying to be more organized in what we do.
Q. How many gallons would it take to go from Los Angeles to Hawai'i, and how much would that cost?
A. About 20,000 gallons, and it would cost about $35,000 for a one-way flight.
Q. Do you have a business philosophy?
A. It's about taking care of my employees and they will take care of the business ... We have 19 here and 11 in Los Angeles.
Q. Is this a family business?
A. You could say that. My son takes care of operations in Los Angeles and my two daughters are in sales.
Q. Who runs the Los Angeles office?
A. I do, and Thomas Ingram is my station manager who takes care of the Honolulu office. I come here twice a month to make sure everything is going OK.
Q. Did you see a spike in your business during the dock strike last year?
A. Oh, yeah. We ran several extra flights during that time. We also saw an increase in business when Hurricane Iniki hit.
Q. What is your biggest challenge right now?
A. Our biggest challenge is the size of our current cargo facility. It's small, and when it rains we cover everything in plastic. That's why we're building a facility that can hold five times more cargo.
Q. What advice would you give to women starting their own businesses or thinking about starting a business?
A. Be persistent and professional. Study how men do business. I did — and surround yourself with smart people.
