Much of global corporate life is an old white boy network where many men continue to fail upwards. The only incentive to change it is when people are feeling the pain in their wallets. Some boards are too close to the c-suite coz it is somewhat of a symbiotic relationship.
How will AA fare? Who knows.
Give the job to QR's ex CEO
100% right they need to clean house in ALL of upper management! As a shareholder and 3+ million miler enough is enough and the people they bring in absolutely needs to come from outside AA.
It does seem like they need to reboot the employee culture, including management. I'd love to see them move aggressively to ditch some of the low quality America West fleet (A321 and A319s in particular) and try to put more mainline jets on major routes instead of regionals.
The brand, routes, order book, app, Frequent Flier program, etc are all great - so they just need to make margin on the operations and not have expensive issues that use up those margins so quickly. Then presumably the much larger profit on selling frequent flier miles would juice the numbers.
One big drawback to American corporate culture is the moment money starts rolling in, they don't reinvest or profit share or buy down debt, instead they try to juice the stock price with (useless) share buybacks or dividend payouts. The idea of long term investing is a tough sell in American boardrooms. I think American has even done some of those money-burning stock maneuvers since their last merger.
Ben, like you, I would prefer to see AA succeed. But there is incredible irony (Karma) in the unions turning on Isom. It's their support that enabled the clowns from America West to takeover AA and it's been a straight line down ever since.
P.S. I've lost faith in AA's FA's to ever deliver more than sullen, diffident service
I am not entirely sure whether AA needs a new CEO; however, I am certain that the very last thing they need is McKinsey or BCG.
Ben - well written. I will never forget the comment I first heard about USAIR - "U Are Still Allegheny in Reality".
You probably don't remember Allegheny but they had a similar reputation as today's AA.
I seriously hope AA can turn it around. There are many dedicated industry professionals out there every day working for at AA.
As for Ben Smith - I worked under him at AC for a number of years. Yes, the man is brilliant beyond belief. I highly doubt he would leave AF for AA.
Amen. I want to spend my money on American. I just can't right now. Poor international route network and increasingly poor product and morale.
The AA board won't wake up. While they *may* get rid of Isom, he'll just be replaced by someone who will fill the board with his cronies like the last set. It's generally that way in Corporate america, IMO (although happens with private colleges too)
Nick Saban for AA CEO