Now all he needs to do is keep the Board and the Unions from continuously undermining his efforts at genuine reform. Good luck with that, you go'n need it.
Two step plan to revive American
Merger with Alaska
New CEO
Not to be that guy, but it’s “AS.” (It probably should be ‘AK,’ but there’s a history with Alaska Star (eh, look it up.)
Also, my goodness, some of the folks on their sub-Reddit lose-it if you refer to it as anything other than ‘Alaska Airlines’ (dear heavens, don’t say ‘Alaskan’… *gulp*)
Also, also, huge fan of adding the double-A to anything, so cAArry on with thAAt, PeteAAU!
@Ben--You suggested that AA should merge with Alaska in order to gain a Pacific hub. God forbid! I wasn't even happy when AS joined oneworld. I (and most people in the PNW) would be outraged at that idea. If that were to happen, AA would likely pull AS down; I don't think AS (or any other merger partner) could pull AA up. If AA uscti be saved, it will have to be organically.
I would also remind you that AA did have long haul international flights (to NRT and LHR) from SEA for a while, but then baled completely, leaving AS in the lurch. AS's previous international partner was Delta. Both DL and AA were supposed to provide international long haul services that AS could feed with its extensive domestic hub at SEA. DL didn't pull out but instead became a competitor, setting up its own SEA hub. I suspect the combination of those two experiences factored into AS's decision to fly international long hauls on its own metal. Regardless, AA's flip-flopping on SEA long haul routes has to have left a bad taste in AS's mouth.
You want to fix American? It starts by eliminating the antiquated, angry union flight crews who have zero respect for customers and prove it every day of the week. It doesn't matter how much you coddle them and/or make excuses for their bad behavior (I'm looking at you 1990!). The bottom line is "Unions Breed Mediocrity"
They completely gave up on Boston and let Delta eat their lunch. They allow BA to drive EU business in one of the most expensive ticket markets, including ridiculous surcharges from the whole US, thus poaching their own potential international business, nobody in their right mind would want to fly via LHR to connect, forget LHR as a stopover point. Serious international expansion is only chance for AA to be in the mix or eventually be acquired or go belly up.
I agree with you about the America West management team style. That style of management needs to go already.
Interesting theory on the Alaska/AA tie up. I think Alaska should be the dominant partner and their management team should take over. Similar to how the American West team was the dominant partner in both the US Air and AA mergers. I’d argue they gutted both airlines and it’s about time a good management team (Alaska) took over.
It’s mainly Devon may of the old America west ilk
He and his clan are the only ones left of the true America west mindset.
He has no idea how to compete or run an airline other than monopoly hubs but he runs the company and pretends on the current premium offering until isom is gone
Everyone at AA knows it too
Alaska is a well-run and conservatively managed airline. They have never gone bankrupt. They have a reputation for listening carefully to both customers and employees. They are early adopters of technology to improve their operations and passenger experience. And somehow, despite not having seat back entertainment, they have managed to grow and remain profitable, delivering excellent results to their shareholders relative to the rest of the industry.
Meanwhile, American is leveraged to the hilt. Nothing is working right. Their whole management team needs to go. They definitely aren't in a position to take over Alaska, and if they did, they'd just destroy it.
Alaska could be in a position to take over American, but it'd have to be after American takes a trip to bankruptcy court. And it'd only work if HQ moves to Seattle.
Alaska merger is an interesting idea. But i agree with @Alex that LHR should not be the preferred transit point for Europre. Landing fees too expensive. AA should make a very bold attempt at int'l expansion and stop dicking around for God's sake.
Delta came back from the crapper starting in 2010 so can AA.
We can only hope that Nat is able to make some real and lasting change. But you are spot on that it will never happen with Isom and his cronies there. Isom has been nothing but a massive failure, and the board should have fired him years ago. IF AA can hire a CEO who will actually lead and inspire employees will rally and it will have a positive effect on customers organically. Most of them are good employees who want to do a great job but who have been beaten down for years by management, had tools taken away and ridiculous policies enacted. Product improvements are a start. New leadership who have a vision and actually lead are the only thing that will turn AA around. Thanks for the write up. I'll keep my eye on Nat.