There’s a rumor swirling around that American Airlines may bring back former CEO Doug Parker to replace current CEO Robert Isom. When I first heard this, I thought ”wait, there’s no way the board would do something like this, right?” However, the more I think about it, the more I think ”wait, that’s exactly what…
Continue reading: SOS: Could Doug Parker Really Return To “Save” American Airlines?
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I sure hope the AA board grows some balls and finally puts someone in a leadership position over there that can make them a half-decent airline. We're moving to Miami in September and just (reluctantly) status matched from Delta to American as we don't really have a choice being hub-captive and traveling throughout CALA a lot. Every flight I have had through Miami this year has been riddled with rolling delays, zero communication, and plenty of attitude from gate agents that can only be described as the most frustrated and bitter workforce that exists in the entire network.
I disagree with the narrative that AA cannot "catch up" to Delta and United. Putting TVs on planes, investing in app enhancements, and improving the onboard product can be done in years, not decades. The service culture is a different story, but look at how much things have improved at United in the last six years under Kirby's leadership. I would argue that pre-pandemic they were similarly poor service airlines with a lot of disgruntled employees.
The question is whether the AA board will have the ability to admit to themselves, and to each other, that the current path is not working and a true outsider (i.e. Ben Smith, although there are others) are what they need to transform the airline. I feel like they are starting to realize they need to change the strategy, and this is reflected in some recent hires (i.e. Rhonda Crawford, who was brought in from Delta to transform passenger experience). If they take the same approach to the "top job" and hire someone from outside with a "turnaround" narrative to sell, I really think they could create the best airline in the US.
Just think about it: AA already has the greatest advantage of all, which is a network of hubs and strong presences in the cities with the highest concentration of wealth, power, and influence: New York, Miami, Washington DC, LA, Chicago, Dallas, Boston. Delta (and to a lesser extent, United) rely on people going out of their way and connecting because the others are "so bad" in comparison. Who's going to Detroit, Minneapolis, Raleigh, Salt Lake City, Seattle (in comparison)?
Combine the AA network (remember, Rasu "the schedule is the product" Vaja?) with a product that appeals to the affluent people who call those cities home and a decent "back-of-plane" experience for everyone else and I think you could have a winning formula for something truly great over there.
@Lee and James K
I think you are missing Ben’s point. Iger of Disney, Jobs of Apple, and Schulz of Starbucks came back to the helm of the company because their respective bosrd members were smart enough to realize their mistake and was quick enough to take corrective action to steer the company in the right direction. As Ben pointed out there are still some on AA’s Board that refuse to admit their mistake and are actually doubling down. Bringing Parker back probably won’t help AA much as he is not a visionary. Iger is a visionary and plans things years ahead and Bob Chapek who was CEO before being ousted by the Board is basically the Alex Cruz of the airline industry and most if not all of the Disney cast members loathed him. I concur with Ben that American Airlines should really consider bringing an outsider as CEO to show the employees, the customers, the shareholders, the media and the general public that it is ready to change the airline’s direction for the better.
American really just needs a strong commercial-side leader to counterbalance all the America West people in the finance organization (of which Heather Garboden is very much one of them ).
Doug Parker isn't the person to hire that commercial leader. He's the one that successfully purged AA of all the commercial brains from Old AA and the smart US people that all went to UA.
A soap opera it is. The whispers, the evil board and the angry rival. But the cast of characters never changes, only their roles.
How does everyone feel post landing drinks for the drive home would move the needle?
Longtime reader, first post. This is a comedy of errors worth commenting on.
How can AA credibly say they’re focused on turning around the customer experience while courting the same ex-CEO who gutted the product and stacked his leadership team with mediocre management?
If this is how the board approaches succession planning, it does not bode well for its ability to make bold decisions on other (urgently-needed) aspects of the company.
I was a EXP (NYC-based) for nearly a decade before becoming a free agent. I have some great memories from my AA travels in the early 2000s. I’d happily give them another shot if they made some improvements in their network and their product.
That said, it’s truly startling that they think Doug Parker is the best they can do. What a lack of original thinking.
Set an age limit of 65 from CEO downwards. Anyone older has to retire. Get some youth and enthusiasm into that airline.
Could be for the best - bury AA once and for all and deprive those hapless board members of their perks.
"The single biggest thing that American needs is a CEO who can excite employees, and who can get them to rally behind a vision. Period. End of story. Without that, there is no turnaround"
It's 2026, Jack Welch died six years ago. This sort of commentary would be dismissed by most serious modern management thinkers as rather outdated and simplistic.
The notion that a visionary CEO is a necessary, and possibly sufficient, condition for succeeding in an enormously complex- and very political- industry reflects ideas which used to be popular in the last century.
The fact that people are absolutely entitled to their own opinion about things doesn't mean that it's a good idea to make such categorical statements. Of course this is a blog post and nobody is going to take offence to its contents, but it still makes sense to point these things out.
That was before Kirby openly leaned into being all-in on maga, American fliers dodged a bullet by not having such a person CEO-ing the airline. We've seen the trickle-down racial attitudes at United...
As for American, the company needs quality, responsible, consistent, long-term-vision management. They should probably hire Japanese or Chinese executives, but the US racial undercurrents prevent that even when they'd make better long term leaders.
And of course then there's the short-sighted US focus on quarterly results and bumping stock valuations in time for bonus season, rather than focusing on steady gains in institutional and societal wealth. But that applies to a lot of the American clown-show of "get as rich as possible, no matter the cost".
And, less of a ‘silent but deadly,’ and more of a ‘load and furious’-toot, at that.
Oscar Munoz.
Why did nobody think of him.
He stabilized what was once the Smisek destruction phase. He probably made Kirby's transition much better and easier.
Fixing AA should be like what he fix at UA.
I think visionary and rallying behind a vision could be seen as two separate ideas. Visionaries create new products, but rallying behind a vision could be as simple as “have the fewest delays”. Fully agreed that American doesn't need a Steve Jobs, but they do need someone who can incentivize the right behaviors. By that, I mean tie bonus compensation for employees to service levels (FA get higher comp for fewer complaints, ground crew get higher comp for fewer lost bags, logistics for on-time arrivals, etc.). You do that, and maybe the EBITDA margins expand.
@Scooter I don't really disagree with any of this, but it doesn't all hinge, and definitely doesn't have to hinge, on one person. Hiring the right CEO definitely is a good thing but it's nowhere near a panacea.
If you get your work motivation from corporate vision statements and empty words from CEOs, you're a retard. AA sucks because they are a bloated union jobs program where people who want to do a good job get shunned and shamed until they fall in line with the bitter old Karens. Nothing will ever change at AA until they can figure out how to actually have authority over their own employees, and that starts with paying and rewarding people based on job performance, not based on seniority. What a great way to reward incompetence.
Put some damn televisions back on their planes. Until they do, I only fly AA when I have to. The competition has them. This is 2026.
only poor people need a seatback screen when there's free wifi -- EVERYTHING is better on your own laptop, phone, or iPad vs those crappy old screens
They might as well look for a DEI hire and see if they can get brownie points...
Parker no. He's way too wrapped up in an Excel spreadsheet mentality. Not all changes can produce a positive ROI but when taken into totality can.
AA is making positive changes but there's more to be done, particularly when it comes to operations and recovery. The wine in business class means very little if you're stuck at LHR all day because you missed a connection.
George, as a Concierge Key, you deal with AA more than most of us. (On IROPS, would be nice if we had an UK261 equivalent in the US, so that when a US-carrier originating in the US, gets you to the UK late, and you miss that connection, you’d get compensated for the inconvenience, and the airlines’ duty of care would be more expansive, including overnight accommodation if necessary.) Or, as a CK, maybe you get all that already anyway. Either way, at least westbound, even if on AA, you’re usually covered by UK/EU261.
On AA flight from SLC to PHL as I write this in first class. I'm EXP for 10 years+. I'm a free agent as well and moving more to DL lately. I'm having a bland oatmeal in F/C that I could buy for $0.50 at Costco, a bruised banana, and mushy bread. No pre departure drink either. I think AA needs to bring back Bob Crandall even if he is 100 years old by now. AA has no vision as a premium carrier and headed in the direction of BA.
If only American can have a non American CEO, I would go controversial and put Akbar Al Baker in the role.
Breaking news Scott Kirby goes to American for a billion dollar pay package. Oh wait…. He wouldn’t want that shit show.
Aa board member only fly private. They won’t sit on that airline. Kamala and Clinton’s fly Aa At times. Says enough on standards. Vomit
Oscar Munoz was this guy for United. I'd think he has no interest in doing it for AA, but they need an Oscar-type. Oscar's book Turnaround Time is a great look into his time at UA and just how bad things were when he stepped in.
Ben Smith is not eligible to be considered. He’s a Canadian citizen. Under U.S. law, the CEO of a U.S. carrier has to be a U.S. citizen.
I can't think of any reason to bring Parker back other than to facilitate the buyout by United .
Unless you're an institutional shareholder who had the guts and luck to buy AA stock in May of 2020 just as everything went down the COVID crapper, I can't imagine how you think you're going to salvage your investment other that selling out to UA.
"Delta (and to a lesser extent, United) rely on people going out of their way and connecting because the others are "so bad" in comparison. Who's going to Detroit, Minneapolis, Raleigh, Salt Lake City, Seattle (in comparison)?"
None of what you said makes sense.
First, you list places like NYC, Chicago, and L.A., as if Delta and/or United don't have a larger presence in them than AA does.
Second, as mentioned so many times here and elsewhere: the New York and Los Angeles type markets are NOT where airlines make their money. They're hyper-competitive necessary evils.
The Detroits and Charlottes of the country, where airlines essentially have captive traffic and low costs-of-enplanement, are where the money's at.
wow i quick Google confirms you are correct and Ben is a Canadian and I assume by now a French citizen.
I know that MIA is not an AA hub, but it is our 50%+. carrier here. What is unique in Miami is that we do not play by the US rules and we are a banana republic in the sense that most speak spanish and have that culture.
Eastern Airlines failed. PanAM failed. National Airlines (so orange cool) failed. That said, Miami is an issue to an airline. IMO.
Very true. I was thinking the same thing before reading your comment. Now we have VIP Signature and more in many locations. Why fly unless its Private?!
I think one of AA's problems was that they just sold too many airmiles at a discount a few years ago. That can be a huge problem for an airline's balance sheet if not done properly. Of course there are other problems as well. Hope they are ok. We are flying AKL-LAX on them in Dec in Y...