In recent years, the UK’s largest regional carrier, Loganair, has been through some major upheavals, culminating in the abrupt departure of its chief executive in March. Rob Munro meets the new supremo, Luke Farajallah, who is busy setting high standards for customer service and operational performance at ‘Scotland’s Airline’.

This article was published in the December 2024/January 2025 issue of LARA. To receive more articles like these from our magazines, apply for your complimentary subscription to LARA.

The history of Loganair Scotland’s Airline

Scotland, with its windswept highlands, rugged coastlines, and lonely islands scattered across an unforgiving sea, presents a unique challenge for any airline. 

It’s a land where communities are often isolated, where weather can disrupt travel plans in an instant, and where the very notion of “essential service” takes on a whole new meaning. 

This is the landscape in which Loganair, affectionately known as “Scotland’s Airline”, has not only survived but thrived – evolving from a small air taxi service in 1962 to the UK’s largest regional carrier.

Loganair’s story is one of resilience, adaptation, and a deep-rooted commitment to connecting the people of Scotland. 

It’s a story that has taken an unexpected turn or two in recent years, with the airline navigating several external upheavals and, earlier this year, the sudden and unexpected departure of its chief executive. 

But despite it all, Loganair has remained committed to its mission, and, under the guidance of its new CEO, Luke Farajallah, it is charting a course for a future that is resilient, sustainable and deeply connected to the communities it serves.

A challenging inheritance Loganair’s post-Covid and Brexit recovery  

When Farajallah took over in March, he inherited an airline facing a multitude of challenges. 

The Covid-19 pandemic had decimated the aviation industry, leaving airlines across the globe reeling from financial losses and operational disruptions. 

Brexit had added another layer of complexity, with new regulations and border controls impacting staffing and logistics. 

Loganair itself had undergone a period of rapid growth, absorbing routes from the defunct Flybe in 2020, a move that, while strategically beneficial, had stretched the carrier’s resources and impacted its operational reliability.

Farajallah was undaunted. With a career spanning decades in the aviation industry, including stints at British Airways, easyJet, Wizz Air, and even a foray into the rotary wing sector with Bond Helicopters, he brought a wealth of experience and a pragmatic approach. 

He understood the challenges facing regional airlines, having witnessed the rise and fall of Flybe, and he was determined to steer Loganair towards a more robust destination.

Farajallah’s approach is refreshingly straightforward. “People are buying a ticket,” he says, “They’re not buying a sob story.” 

He understands that passengers want reliability, punctuality, and a safe, comfortable journey. And he’s determined to deliver, even if it means making tough decisions.

One of his first actions was to conduct a thorough operational review. The result? A streamlining of routes, a tightening of schedules, and a renewed focus on on-time performance.

“Late is late,” he insists, underscoring his no-nonsense approach.

The numbers speak for themselves. On-time flight percentages are up, cancellations are down, and passenger confidence is slowly being restored.

Farajallah has prioritised improving customer service, investing in staff training, and upgrading the airline’s ability to monitor key metrics at a glance. 

He recognises that in today’s competitive market, airlines need to offer more than just a seat on a plane – they need to provide a seamless and enjoyable travel experience from start to finish.

Airplane in the air from Loganair, Scotland's Airline

Focused on performance: Loganair’s on-time flight percentages are up and cancellations are down. Image: Loganair

Solid foundations Ensuring financial stability in the regional aviation market  

Farajallah’s vision extends beyond operational efficiency. He’s keenly aware of the need for financial stability, especially in an industry known for its thin margins. 

He points to Flybe’s high cost structure as a cautionary tale and emphasises Loganair’s debt-free status as a key strength. It allows the airline to invest in new aircraft, explore greener technologies, and, crucially, provide competitive salaries and benefits to its employees.

“The difference financially between a healthy regional airline and an unhealthy one is the amount of debt you’re carrying and the cash you burn through,” Farajallah explains. “One of the amazing things about Loganair is it has no debt.”

Farajallah is not interested in reckless expansion or chasing market share at any cost. Instead, he advocates for a balanced approach, focusing on serving Loganair’s core markets and strengthening its position as the leading regional carrier in the UK.

“If you’ve got your numbers in the right place, you can launch new routes, look at fleet decisions, bring new aircraft in, pay your people the right wages, incentivise them, invest in technology and take calculated risks. You can do none of those things if you don’t have financial health.”

He cautions against decisions that benefit one group at the expense of others, potentially storing up long-term problems.

“The focus at Loganair has always been on three things: the investors, the employees, and the customer. If you think about everything in that way, in my opinion, you will make a decision that will be well-received by all three. Two out of three doesn’t work.”

Embracing sustainability Environmental and sustainable aviation fuel initiatives 

Sustainability is high on Farajallah’s agenda. Loganair is actively pursuing a multi-faceted strategy, exploring everything from sustainable aviation fuel (SAF) to hydrogen-powered aircraft.

Partnerships with companies like Cranfield Aerospace Solutions and Hybrid Air Vehicles are pushing the boundaries of what’s possible, with trials of hydrogen fuel cell aircraft and hybrid airships set to take flight in the Orkney Islands.

Farajallah acknowledges that investing in sustainability initiatives can be expensive in the short term, but he believes these are essential investments for the long-term viability of the aviation industry and are increasingly important for customers and investors.

Loganair has also implemented a range of initiatives to reduce its environmental impact, from optimising routes to minimising waste and promoting recycling. It’s a holistic approach that reflects a genuine commitment to responsible operations.

Farajallah adds that Loganair’s dedication to environmental responsibility is already a key differentiator for the airline. 

“Every conversation with the travel trade and business communities inevitably turns to our sustainability plans,” he says.

To further solidify their commitment to environmental responsibility, Loganair recently appointed Rebecca Borresen as Director of Safety and Sustainability. 

Borresen, with her experience in both aviation safety and sustainability initiatives, is tasked with integrating these crucial aspects of Loganair’s operations.

Connecting communities Loganair’s lifeline services linking remote regions

Loganair’s unique position as a lifeline carrier for many remote communities adds another layer of complexity to its operations. Balancing commercial viability with social responsibility is a delicate act, but one that Farajallah takes seriously. He recognises the vital role Loganair plays in connecting these communities, providing essential travel links for residents, businesses, and public services.

Loganair, Scotland's airline ready for take-off and landing

Loganair’s commitment to serving remote communities is reflected in the diversity of its fleet. Image: Loganair

While operating as a commercial enterprise with a commitment to financial stability, Loganair also acknowledges its social obligation to serve remote communities and provide lifeline services, even on routes that may not be commercially viable.

“We have a sense of responsibility,” says Farajallah. “We intend to continue serving remote communities and providing lifeline services. We intend to continue offering services for the National Health Service.”

Farajallah stresses the importance of collaboration with stakeholders, such as the Scottish government and airports, to ensure the sustainability of these essential services.

“You do it as a team,” he says. “The Scottish government, the airports and others make it work. We are happy to do that because there are more profitable routes than there are loss-making routes. You shouldn’t see Loganair making huge profits every year. That wouldn’t be reasonable. You should see that we have fewer loss-making routes because of the support we get. We will continue to invest in a range of aircraft and people.”

This commitment to serving remote communities is evident in Loganair’s willingness to operate a diverse fleet, including ATR 42s, ATR 72s, de Havilland Canada DHC-6 Twin Otters, Britten-Norman BN-2 Islanders and Embraer ERJ-145s.

This complex fleet structure allows the airline to tailor its aircraft to the specific needs of different routes, ensuring connectivity even to Scottish islands with limited infrastructure.

Investing in people Prioritising employee wellbeing and a work-life balance 

Farajallah’s leadership style is characterised by a focus on transparency, accountability, and a genuine belief in the power of teamwork. He understands that Loganair’s success depends on the dedication and expertise of its employees, and he’s fostered a culture of trust and mutual respect.

“If you trust your employees, I think you will have a prosperous and special relationship,” he says.

The CEO also understands the importance of work-life balance for employees, particularly pilots, and has implemented initiatives to give them more control over their schedules, such as providing fixed days off for part-timers. 

He believes this focus on employee wellbeing is not only ethically sound but also strategically beneficial, as it helps to reduce absenteeism, increase loyalty, and attract skilled professionals to the airline.

Looking ahead, Farajallah is optimistic about Loganair’s future. He sees an airline that continues to grow, but sustainably, maintaining its commitment to connecting communities, embracing innovation, and above all delivering a reliable and enjoyable travel experience for its passengers.

“We will not diversify too far from what we’ve done for many years,” he says. “We’re not going to launch longer routes or routes to Europe. Our strategy is to serve the markets we’ve always served and do it better than ever. The competition we are fighting is trains and ferries. We are persuading people not to use their cars.”

Loganair's airplane pilot smiling in the cockpit, with a view of the flight instruments in the background

Core values: customer service, operational excellence and environmental responsibility are Loganair’s watchwords under new CEO Luke Farajallah. Image: Loganair

Charting a course Connecting Scotland’s remote communities

In a world of uncertainty and turbulence, Loganair under Farajallah’s guidance is charting a course for a future where the airline continues to play a vital role in connecting the people of Scotland, supporting local economies, and contributing to the nation’s prosperity. 

“The key priority is to deliver the safest, most stable, and reliable operation we can at the lowest cost,” says Farajallah. 

“We will continue to develop a culture where everyone understands what it’s like to walk in the customer’s shoes. We will defend our network. We will continue to deliver long-term connectivity.

“We need to continue to embrace sustainability and make difficult decisions that might cost more. The best outcome would be happy investors, loyal employees and satisfied customers.”

Perhaps the most iconic and recognisable image of Loganair is one of its Twin Otters landing on the windswept beach that serves as the runway at Barra, a remote island in the Outer Hebrides, population 1,174.  It’s a scene that embodies the essence of this unique airline and its deep-rooted connection to the land and its people. This is an airline that will continue to grasp opportunities, rise above challenges, and strive to remain a vital part of the UK’s transport infrastructure.

Loganair at a glance

Lifeline services: plays a vital role in connecting remote communities in Scotland and the UK, providing essential transport links.

Diverse fleet: operates a varied fleet, including smaller aircraft like the Britten-Norman Islander and twin otter, to serve communities with limited infrastructure.

Commitment to sustainability: actively exploring sustainable aviation technologies, including hydrogen and electric aircraft and the use of SAF

Unique: operates flights to the Isle of Barra in Scotland, the world’s only airport where scheduled flights land and take off on a tidal beach.