As anyone who follows the airline industry knows, American Airlines is horribly lagging Delta Air Lines and United Airlines when it comes to financial performance. I mean, the airline didn’t even turn a profit in the third quarter.
Delta has long been the leader when it comes to profitability, but United has been narrowing the gap (though perhaps not quite as much as United CEO Scott Kirby claims, especially given the labor contracts that United still has to get squared away). Financially, it almost feels like a zero sum game, where United’s improved financial performance comes at American’s expense, though I’m not convinced it has to be that way.
While everyone seems to have their theoretical magic formula for how to fix American, I think that sort of misses the bigger picture. I don’t think anything will make a material difference without a major reboot at the top.
In this post:
I don’t think American can succeed under current leadership
Personally, I don’t think American can’t be saved, and that the company’s mistakes can’t be undone. Quite to the contrary, I think American could solve its issues without having to reinvent the wheel. The carrier has amazing domestic hubs, incredibly strong joint venture partners, a unique advantage in Latin America, etc.
I think what American needs most is a vision and clear mandate for what it wants to be, a focus on premium, and a leader who can get employees united behind all of that. That last point is the most important — without the support of frontline staff, nothing is changing. Essentially, the airline needs a full reboot, where a leader proudly proclaims “okay, we’re going to do things differently starting now, this isn’t the old American anymore!”
The irony is that American is currently very slowly making positive changes, but they’re happening one after the other, and they’re not being rolled out in a way where American is really getting credit for it, or where the CEO can clearly explain “hey, here’s what we’re really doing!”
And that brings me to what I view as a key thing standing in the way of American’s success — I am convinced American can’t succeed under its current CEO, Robert Isom.
Let me emphasize that I say this as someone who is rooting for American. I’ve been loyal(ish) to the airline for 15 years, and I live in Miami. Little would make me happier than a renewed effort to make American great again!
It also sort of pains me to say this, because while I haven’t met Isom, he strikes me as the most pleasant and sincere of the “big three” US airline CEOs. I have a lot of respect for him as a person. But seriously, ask any American employee, from a frontline team member to a mid-level manager, if they have faith that Isom can orchestrate a turnaround, and get people excited. The answer is overwhelmingly going to be “no.”
Yes, American has actually been hiring pretty well, and it’s encouraging that Nat Pieper has now become Chief Commercial Officer. But I truly think that more than ever before, American needs a new CEO who can get an exhausted and confused workforce excited. I’m also convinced it needs to be someone from outside the organization, and not just another reshuffling of the America West and US Airways deck chairs, so to speak.
It’s really unfortunate that the one “bold” strategy that Isom endorsed was that of former Chief Commercial Officer Vasu Raja, with his “screw business travel, and we’re a domestic airline, and our schedule is our product” strategy.
How is American’s board okay just watching all of this happen?
I’ll admit I’ve never worked for a major publicly traded company, so could y’all indulge me for a moment? If I’m understanding things correctly, company boards report to shareholders, and they exist to oversee management and hold them accountable… is that correct?
If so, of all the people in the world who could be paid $15-30 million per year to lead American, they still think things are headed in the right direction, and that Isom is the absolute best person for the job? Or put another way, are they really worried the airline would be worse off if they gave someone else a try?
Can anyone make sense of this? Is the issue just that this is essentially a club of friends, and they have the CEO’s back? Does no one want to be the board member who says “hmmm, you know, things aren’t looking so great, maybe we should try a different strategy?”
I’m not some person who thinks stock price is the single most important thing in the world, but isn’t that what company boards usually care most about? I can’t help but always be reminded of how former American CEO Doug Parker made a bet that the company’s stock price would hit $60 in November 2018. Instead it was at $37. Now, in November 2025, it’s at $12. Interestingly, comparing that to Delta and United stock, both of those are roughly even comparing November 2018 vs. November 2025. So yeah, even vs. roughly two-thirds decrease… I’ll let everyone draw their own conclusions.
American needs a CEO who can explain and execute a cohesive vision of what they want the company to be, who can hire the right people, who can rally employees, and who is good with labor. Am I wrong about what’s important, or does the board think that Isom has those qualities?
And frankly, I think it’s more important than ever that they pick someone from outside the company, because that will maximize odds of employees rallying behind them. American’s management has ultimately failed employees year after year, and morale couldn’t be much lower, despite American’s high labor costs.
Who would be a good fit for the role of American CEO? Which outsider has the experience, the track record, and isn’t at retirement age? I feel like there’s a bit of a generational divide at the moment among airline executives, where you have a bunch of very smart people who will be retiring in the coming years, and then a new wave of very bright people in their 40s, who have C-suite roles (just look at Air Canada, as an example).
Can you give one of the younger people a shot? I suppose some might view that as a gamble, but I can think of several that would do a great job. If you wanted to go with a safer bet, who could you go with? It’s not like American would poach the CEOs of Delta or United, and I don’t think someone like Delta President Glen Hauenstein would necessarily be a great fit either (he’s brilliant at orchestrating things in the background, but probably not the guy for a job like this).
What about someone like Alaska CEO Ben Minicucci, or former Hawaiian CEO Peter Ingram? Minicucci does a great job running Alaska, but he’s just now learning about running a global airline which is a bit of a different beast. And while Ingram seems like a bright guy, it’s not like Hawaiian really did that great financially, other than becoming an attractive acquisition target.
I think American needs someone like current Air France-KLM CEO (and former Air Canada President) Ben Smith, who kind of bridges the gap between generations, who knows the industry exceptionally well, and who has a lot of leadership experience running a global airline, while being nowhere close to retirement age. Now, of course that’s just an example, but I’m talking about the type of person they need. I’m just struggling to think of many other people with that level of experience, who aren’t close to retirement.
Bottom line
Everyone has their theory as to how to fix American Airlines. I think the biggest and most basic thing is that the airline needs a bold new vision, and a CEO who can get employees excited. Without the trust or enthusiasm of employees, nothing will change.
I think the issue is that if you ask most American employees, they’ve lost faith in the America West team running things. And even if American CEO Robert Isom revealed some incredible new vision tomorrow, most employees would probably just roll their eyes and say “whatever.”
I don’t think anything I’m saying is any sort of a hot take. I’m just curious about why American’s board has been sitting by year after year, watching continued declining performance, without seemingly intervening. And no matter how much American improves its C-suite talent otherwise, it doesn’t change the fact that American needs a central leader who tells the company’s story… and I don’t think Isom has proven that he can be that guy.
Where do you stand on the need for American to have a leadership change?
So you're saying Dallas isn't the center of the universe? Philadelphia isn't better than New York? Keep dreaming, everyone I know is planning their summer vacation next year to El Paso, TX and we are charging our phones from now to watch our own content, nobody needs seatback entertainment.
A service based business with unhappy frontline employees will have a difficult time beating mediocrity.
What about former CSX CEO Joe Hinrichs?
He certainly had the employees and customers onboard at the railroad.
Ben smith would be a disaster. flying blue has never been worse. Absolutely useless program.
"If I’m understanding things correctly, company boards report to shareholders, and they exist to oversee management and hold them accountable… is that correct?...Is the issue just that this is essentially a club of friends, and they have the CEO’s back? Does no one want to be the board member who says “hmmm, you know, things aren’t looking so great, maybe we should try a different strategy?”
Ben, to answer this question, I'd unfortunately say no...
"If I’m understanding things correctly, company boards report to shareholders, and they exist to oversee management and hold them accountable… is that correct?...Is the issue just that this is essentially a club of friends, and they have the CEO’s back? Does no one want to be the board member who says “hmmm, you know, things aren’t looking so great, maybe we should try a different strategy?”
Ben, to answer this question, I'd unfortunately say no that Boards of Directors often get too close to the company's management, a big reason is often that the Chairman and the CEO are the same person. Also it doesn't help that lots of board members serve on other company boards while they are an executive at another Fortune 500 company. So they all get too chummy with one another. I'd imagine there's a lot of "if I'm good to you you'll be good to me" going on unfortunately. So things like what happened with Southwest and that investor Elliot getting several desired board seats taken is a way to counter this.
My county's public school system (one of the 20 largest in the country) is currently going through a lot of big changes between boundary studies and proposed changes to high school programs. There's a lot of complaints from most people, yet the Board of Education hasn't really pushed back much and lots of people are complaining that they are just in bed with the school system.
I normally fly premium and had elite status with AA. When they started removing the TV screens from the first class domestic aircraft, I went to Delta and have not looked back since. Recently I had a free first class AA ticket so I flew DFW - SLC. It was a poor experience, from their hard product to their soft product.
Spot on article ! Speaking as an employee with over 35 years with the company.
Sell the Miami hub to Delta (in one sense a Golden Goose but not AA’s only leverage).
Pay down debt with the proceeds then focus on being a quality mid tier carrier with select fortress hubs (CLT, DCA, PHL, DFW, PHX).
MIA ops for AA relocated to CLT to mitigate connectivity loss from former SoFlo hub.
Alliance partners can assist with network and operation of a now appropriately sized fleet.
Selling Mia hub would be a huge mistake, that is what keeps AA alive . American needs to return their 1980’s service standards and employee standards. Become a premium product and send the basic economy passengers to spirit!
Exactly. The Prince of Darkness Bob Crandall would have never allowed Delta to outshine AA.
Ben - Funny enough as I was reading your article I began to think the best option for a CEO would be Ben Smith. Then - paragraphs down - I see your comment.
I worked for Ben Smith for a few years - the man has an incredible vision and seems to have a knack at rallying employees. Not sure he would give up AF though.
Isom and the rest of the USAir...
Ben - Funny enough as I was reading your article I began to think the best option for a CEO would be Ben Smith. Then - paragraphs down - I see your comment.
I worked for Ben Smith for a few years - the man has an incredible vision and seems to have a knack at rallying employees. Not sure he would give up AF though.
Isom and the rest of the USAir (You are still Allegheny in Reality) crew will not leave easily. It's a great gig for them.
AA has many front line people who want the company to excel. They are not being heard unfortunately.
Im an American Airlines front line employee and I couldn't agree anymore than this article. We are OVERDUE for a new CEO. It's time for the Board to take actions NOW.
Man I miss Bob Crandall
The next question should be: when will CARSTEN SPOHR be replaced??? Lufthansa (and Swiss) were decently run companies that knew who they were before he arrived. A roller coaster ride down to the bottom. Vive la Air France who got the memo, read it and have been implementing and executing - despite a very challenging environment for all- extremely well. I can’t understand why Spohr is still in his place after so many face-plants. Smart...
The next question should be: when will CARSTEN SPOHR be replaced??? Lufthansa (and Swiss) were decently run companies that knew who they were before he arrived. A roller coaster ride down to the bottom. Vive la Air France who got the memo, read it and have been implementing and executing - despite a very challenging environment for all- extremely well. I can’t understand why Spohr is still in his place after so many face-plants. Smart consumers have started to diversify…
Look for Spohr to resign next year when LH celebrates 100th anny.
aa's board is full of yes men. aa sent 757,767 and a330 fleets to the boneyard during covid- no-one else did. aa's 737's aren't ETOPS, everyone else has etops 73's so they can cross the atlantic. aa has a few etops a321s, but not enough to be meaningful. every quarter when aa loses money, they boast about improving cash flow. But they still lose money. the board, the ceo and president all need to go.
a retired aa pilot
I’d say that Nat Pieper will be the next CEO.
The unions have already organized their officer board group for removal of Isom committee. It will happen after the next shareholders meeting and all hell breaks loose.
Isom also hired Ganesh as the IT (CIDO) and Ganesh is firing thousands of US based IT employees and using his India head0hunting tech company to hire new Indian based (Hyderbad) IT employees in their place, while making $ off of the new Indian hires! Ganesh is constantly lying at his town-halls, and gaslighting the employees. Morale is the lowest I've ever seen it, it's extremely bad at AA right now for all departments!
Truly lost track of how many times I've seen this playbook...Indian CIO's move everything to the mother country. Makes me wonder if they're hired to make this happen or just want a reason to fly home!
Anyone challenging the proletariat’s beliefs is a “Snowflake” or “Woke” or “Elite” or “Entitled” or “Privileged” and becomes a perceived threat, fuelling the proletariat’s self-appointed duty to defend their version of common sense. When the proletariat’s mind is in threat mode, survival trumps reflection and reality.
The proletariat feels unsafe when confronted and everything is reduced to binaries, eg, right or wrong, us or them, because rigid certainty gives the illusion of control.
after months of being called out for your constant change in syntax -- sometimes british. Sometimes American from ATL.
Never sleeping on GMT, just EST
Thank you for confirming what I've always said. You're nothing more than a chatGPT bot of another user that doesn't have a consistent voice except that straight from a bot.
You've made my day. And you couldn't even log in to your own account... no surprise
For the proletariat online spaces can act as surrogate communities and outrage may have become the proletariat’s way to feel engaged and relevant. So has the proletariat well and truly lost the plot? That is the $64,000 question.
are you stupid? Or just only know how to use chatGPT with no personal intelligence added in?
Honestly the only way to fix American is to fire the whole America West and US Airways team. America West was a great carrier but it was in the 80s/90s. US Airways, let's be frank, was never great but was successful when they had a monopoly over the Eastern part of the country. So both management team is not fit for running an airline in 2025/6. They need to actually put more staffs on a...
Honestly the only way to fix American is to fire the whole America West and US Airways team. America West was a great carrier but it was in the 80s/90s. US Airways, let's be frank, was never great but was successful when they had a monopoly over the Eastern part of the country. So both management team is not fit for running an airline in 2025/6. They need to actually put more staffs on a plane. Just a premium suite is not sufficient, and they need more F/As to run a real premium product. They really need to boost the morale of the company. You don't need a new brand. You don't need any superficial brand change but what you need is a bold vision and a new management team, who actually lives in 2025.
It wasn’t broke when Isom took over but he decided to fix it. A series of bad decisions and bad luck has led to this. The cancer starts at the top, he needs to go along with the senior management.
You are correct Donna. Airways came in and "fixed" everything so well that the FAA even had questions. What a circus. The told us not to make any suggestions or question their superior materials, all of which were 1990's tech. Retirement was my salvation.
I flew on AA Economy from LHR to ORD. Can't say I'm surprised by the uninspiring at best, downright pathetic at worst onboard experience when we look at the mindset from those at the top.
It's hard to not notice the similarity in the trend of AA and the USA these days
The proletariat may genuinely feel that they are defending truth or decency, but in fact, biologically, they are is chasing a chemical high. Each online clash gives them a brief dopamine hit: a surge of reward that reinforces the behaviour, making outrage feel momentarily satisfying even as it deepens their agitation.
STFU
The board has been asleep at the wheel for years and every long time employees know that the top has been devaluating the intrinsic value of airline. If all the ‘supposed’ top educated at AA can’t make money in high season, 3rd quarter, need to be let go.
THIS! Isom is a manager, not a leader, and not necessarily a good one at that. He can't seem to do anything right for AA at all, and he needs to go. Most of the employees at AA are good people who want to do a good job and who want to care for people along life's journey, but they don't actually receive support from the top or have the tools to do so. With...
THIS! Isom is a manager, not a leader, and not necessarily a good one at that. He can't seem to do anything right for AA at all, and he needs to go. Most of the employees at AA are good people who want to do a good job and who want to care for people along life's journey, but they don't actually receive support from the top or have the tools to do so. With the right leadership and a cohesive and clear vision, American Airlines could be an airline they would be proud to work for and one customers would be delighted to fly.
Unfortunately, AA has backed themselves into a corner. It will take $$$ to make improvements and the return on that investment may take 2-4 years, or longer, to show up. What that means in the short term are heavier losses and then the fall out. Even at that investments particularly in the coach product might not pay dividends.
The proletariat is trapped inside their own worldview, consuming only the content that reinforces their existing beliefs without exposure to differing viewpoints …. this is called confirmation bias. The proletariat’s social media feeding frenzy validates their position while supporting a belief that fury equals purpose.
Hey Aero
ChatGPT called. They want their unrelated off-topic word jumble back.
Plane Jane wins comment of the day
There is an ex-employee that would be an excellent CEO. His last name is Kirby.
Dave Kirby?
An effective Board of Directors oversee a company's vision, strategy, and protect shareholders, among other duties.
5 of the 11 current independent AA directors thought the Raja / Isom vision was good...
AA will continue to be a credit card company that flies airplanes unless they address their BOD & CEO issues...
Wish Robert Crandall would come back! he was a smart cookie!
The proletariat’s click feeds a feedback loop: the more provoked they feel, the longer they stay, the more data they generate and the more advertising revenue platforms earn. It's the 21st-century evolution of emotional marketing, only now the proletariat’s attention is the product being sold and their indignation the fuel
that keeps the system profitable.
Hey Aero
ChatGPT called. They want their unrelated off-topic word jumble back.
What word salad is this?
Just wait for the next recession. The BOD will get antsy, stockholder will demand change for the sake of change, private equity will smell opportunity, and employees will be let go according to the bargaining agreement (ie: last hired, first fired).
That's your only chance to get rid of stale leadership.
However, AA may get there earlier than most if it doesn't do something about the militant attitude of its FAs, especially those stationed...
Just wait for the next recession. The BOD will get antsy, stockholder will demand change for the sake of change, private equity will smell opportunity, and employees will be let go according to the bargaining agreement (ie: last hired, first fired).
That's your only chance to get rid of stale leadership.
However, AA may get there earlier than most if it doesn't do something about the militant attitude of its FAs, especially those stationed at MIA. Yet, the NYC based crew couldn't do enough to assure a pleasant flight.
A prime example of how out of touch the C-Suite is with what's going on in the field!
LISTEN UP!
AA WILL DO JUST FINE!
YOUNGEST FLEET IN INDUSTRY WITH LOW INTEREAT RATES!
BOTH DELTA AND UNITED HAVE TO REPLACE MORE THAN HALF THERE FLEET!
OLD 717/757/767 AND 737.
THEY WILL PAY HIGH, MUCH HIGHER THAN AA IN FINANCING.
AND UNITED HAS TO SETTLE WITH FLIGHT ATTENDANT'S AND MECHANIC CONTRACT$!
SO, STAND BY. AA HAS TRULLY PREMIUM CABINS AND SEATS HEADING YOUR WAAY!
OR, FLY FELTAS OLD 717/757/767.
LOL
AA has far more debt and pays more in interest expenses than DL or UA.
yes, UA's labor costs will go up.
UA has been "blessed" financially that Boeing has not been able to deliver the amount of aircraft than UA has on order. Not only will UA spend more on new aircraft than it is generating in cash - which means it will take on debt - it cannot grow its network as...
AA has far more debt and pays more in interest expenses than DL or UA.
yes, UA's labor costs will go up.
UA has been "blessed" financially that Boeing has not been able to deliver the amount of aircraft than UA has on order. Not only will UA spend more on new aircraft than it is generating in cash - which means it will take on debt - it cannot grow its network as much as the new aircraft will allow which is why UA's earnings are deteriorating; it is putting too much capacity into the market, depressing its earnings.
DL does have alot of airplanes to replace but they are easily spending $5 billion/yr on fleet and can continue to do so for five years or more based on the level of their earnings.
and, no, DL and UA are not spending more than AA on financing; DL and UA are largely paying for new airplanes with cash they are generating.
AA is simply not generating the cash necessary because its costs are too high relative to the amount of revenue they generate because of their network strategies
It’s gotten to the point where even as a Oneworld Emerald, I actively avoid travelling on American when in the U.S. because the experience is so unpleasant. Make America(n) Great Again!
I agree. I have been AA Exec Plat for over 20 years and now Emerald for life (well, the life of the program). I have been actively avoiding AA though...directing my spend to Alaska, Qatar, JAL and Qantas...and yes...even BA! AA's onboard standards in the Premium Cabins have collapsed...staff in sloppy clothes with snippy attitudes, open your own tray table, set out your own table cloth, eat whenever they tell you it's time, rushed meal...
I agree. I have been AA Exec Plat for over 20 years and now Emerald for life (well, the life of the program). I have been actively avoiding AA though...directing my spend to Alaska, Qatar, JAL and Qantas...and yes...even BA! AA's onboard standards in the Premium Cabins have collapsed...staff in sloppy clothes with snippy attitudes, open your own tray table, set out your own table cloth, eat whenever they tell you it's time, rushed meal service on day flights, removal of mattress pads/PJs to Sydney, poorly presented food, shockingly bad lounges in London, horrid back-facing 777-200 and 787 bus seats, pathetically slow roll out of new business product, worthless Systemwide Upgrades; insanely mileage rates for business award tickets. I know they'll keep going but it wont be because of me.
AA just hired a woman from Delta as their new SVP of experience - clearly they know they need to go outside for real talent. If they were smart, they would hire more Delta and ex-Delta.
Well Lucky got a JB FA fired this year. Why not a whole CEO too?
AA is so outdated in my opinion, but . . . even if i'm no aviation expert, going new (old) ways could help make the airline GREAT again and even better than most competitors!
Try a model as an airline from the 80's once did, using the slogan too "What we serve is you" and raise $$$ by making every employee an owner by taking 10% of their paycheck to invest in the airline...
AA is so outdated in my opinion, but . . . even if i'm no aviation expert, going new (old) ways could help make the airline GREAT again and even better than most competitors!
Try a model as an airline from the 80's once did, using the slogan too "What we serve is you" and raise $$$ by making every employee an owner by taking 10% of their paycheck to invest in the airline AND hope that the service and attitude of some of the not so "welcoming" staff is forced out by others who want to save their ass, by finally competing with any other airline.
All based on Service and a modern environment within the airline!
Employee owned and bring the right attitude back again, start being an International Airline again and finally, invest in modern and reliable aircraft, there is GREAT alternatives to BOEING planes!
If the world is NOT booking your flights, it might have to do with the "WRONG" aircraft used. MAX and 787-8 ... ever thought of that?
Finally, make it worth again, flying an airline that you pay premium fares for!
NO one pays any attention to the airframe you’re using .
The board signed off on turning AA into another GE and lost. Don’t expect any soul searching from these folks, Lucky.
“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually...
“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.” ― Theodore Roosevelt
I've been saying the same for years now. Hopefully your larger audience will help nudge things in the right direction.
Internally we nicknamed Isom as "Quarter Zip" as that's all he's know for.... He's always wearing a quarter zip pull over.
the real question is how long AA can continue to hover just about the water. There are banks that clearly love holding AA's debt but there has got to be a point at which DL and UA have to tell Washington to let the next crisis take out who it will take out.
Add in that WN has yet to find clear air and even the best run airlines are not really gaining ground and...
the real question is how long AA can continue to hover just about the water. There are banks that clearly love holding AA's debt but there has got to be a point at which DL and UA have to tell Washington to let the next crisis take out who it will take out.
Add in that WN has yet to find clear air and even the best run airlines are not really gaining ground and you have to ask how much more non-productive capacity needs to come out of the industry. NK is pulling about 100 aircraft worth of flying; B6 is reducing capacity but more than half of US airline capacity is flown by zombie airlines.
The debt piece is the real key - if that loses its returns (it was money to buy in 2022), I’d assume the board would take notice.
My home airport is mostly dominated by Southwest, but AA actually flies where I want to go (ORD, DFW). But with Southwest adding seat selection and extra legroom, I might think about switching...
They were doomed the day they merged with USeless Air !
I could be a good ceo in spite of my small manhood.
Work on your unusual gary leff sexual obsessions
Not a cute look
Posts like this clutter up the comments without adding anything to the discussion so, and I say this without wanting to offend you in any way, take a minute to think before you press click "post."
I'm sure you have lots to say that is insightful and going forward will choose to share those thoughts instead.
Could start by winning back business travelers. Friend of mine is ready ditch them for UA. 600k+ LPs this year, all from flying, AA metal only. If that doesn’t get one CK, I don’t know what does
If only Gordon Bethune was available :)
Airlines are a nasty business to run. Between employees, customers and shareholders, you can only keep two out of 3 happy at any time. So juggling those three before one gets too unhappy is the challenge.
Running on thin margins, where employees can walk out any time, when aircraft maintenance or weather can completely screw up the schedule, not to mention the liability they carry if something were...
If only Gordon Bethune was available :)
Airlines are a nasty business to run. Between employees, customers and shareholders, you can only keep two out of 3 happy at any time. So juggling those three before one gets too unhappy is the challenge.
Running on thin margins, where employees can walk out any time, when aircraft maintenance or weather can completely screw up the schedule, not to mention the liability they carry if something were to fail.
My point is there are very, very few people who can run an airline to scale welk and like a relief pitcher you never know if they are going to be hot or cold when they are brought in. So, the decision to bring in a relief pitcher especially when down is a risky proposition. Hence, the reluctance to replace somebody quickly.
It would be better if they could hire candidates and groom them to see who succeeds when given smaller responsibilities but involved in all major decision. But which CEO is going go execute their own transition plan before they are ready to quit.
Raja Vasu's damage cannot be repaired in quick time.
If an employee screws up this big, do we hold his immediate supervisor accountable?
American is losing it with weaker international flights and routes than UA and DL. AA got rid of many older aircraft, likely too soon, UA and DL kept them - they are still flying 767s and 330s.
Network planning decisions were the primary reason why I left AA. Will they miss me? Certainly not.
Wait, is this blog now a codeshare with Viewfromthewing.com? Gary, you are being channeled!!!!
Corporate boards are often stacked with "insiders" who have connections to executives or other board members. And board members pay is quite lucrative for someone who simply has to attend a few meetings a month. The last proxy statement shows what the directors were paid for a year. And keep in mind directors recieve complimentary personal and family air travel on American and American Eagle, ConciergeKey status, and Admirals Club membership. The company covers the...
Corporate boards are often stacked with "insiders" who have connections to executives or other board members. And board members pay is quite lucrative for someone who simply has to attend a few meetings a month. The last proxy statement shows what the directors were paid for a year. And keep in mind directors recieve complimentary personal and family air travel on American and American Eagle, ConciergeKey status, and Admirals Club membership. The company covers the tax liability for these travel benefits.
Gregory Smith (Independent Chairman of the Board): ~$475,680
Jeff Benjamin (Director): ~$405,501
Martin Nesbitt (Independent Director): ~$340,666
Matthew Hart (Independent Director): ~$331,242
Douglas Steenland (Independent Director): ~$324,028
Adriane Brown (Independent Director): ~$317,234
Denise O'Leary (Independent Director): ~$316,888
Mike Embler (Director): ~$308,442
John Cahill (Lead Independent Director): ~$303,670
Susan Kronick (Independent Director): ~$302,436
Vicente Reynal (Independent Director): ~$295,956
I've been a member of private boards and I have known individuals on public boards (high 11-digit market value). It is a club and very much along this line. Board membership is about going along with it and getting along and you'll be nominated for a board at another company. You don't want to ask hard questions or set deadlines or have high expectations, as you'll be viewed as not a team player or rightful member of the club.
I think the most disappointing part is that in 2012, American was doing exactly what you suggest. The “New American” was a great campaign, and employees really rallied behind Tom Horton. New planes, new cabins, PTVs, a real push to be premium. Then the America West folks got involved, and scrapped it all. They were on a great path and threw it all away.
I mean
let's be clear. LAA had nothing except a hope and a dream.
LAX was never going to be anything more than it is today for AA. LAWA ensures that.
There was zero path to beat UA at ORD. AA just simply can't be bigger than them when UA has an HQ in Chicago. It's simple city politics. It shouldn't be, but it is.
NYC had no slots to grow. so...
I mean
let's be clear. LAA had nothing except a hope and a dream.
LAX was never going to be anything more than it is today for AA. LAWA ensures that.
There was zero path to beat UA at ORD. AA just simply can't be bigger than them when UA has an HQ in Chicago. It's simple city politics. It shouldn't be, but it is.
NYC had no slots to grow. so the "LAA strategy" was MIA and DFW and it was an entire financial "strategy" based on the back of labor that was NEVER EVER going to work.
Let's just call facts facts. LUS brought a strong DCA and CLT hub that actually can make the airline profitable alongside DFW and SHOULD allow them to do what Delta does -- grow other hubs that won't be profitable flying passengers alone.
And give me a break... "employees really rallied behind Tom Horton."
lmao. The employees are the one that showed Tom the door and chose US. No one believed Tom's lies.
LUS is lousy management but there was nothing about a standalone AA post bankruptcy that was going to match DL and UA absent US.
Just one anecdote, but AA's fares on many routes I have to fly for work are routinely higher than competitors, and I don't mean by a little, and that travel is in and out of a range of hubs and cities.
Just this morning I booked an LAX-LAS-LAX trip for June 2026. UA and DL had multiple flights throughout the day, at good times, for $60. AA was over $250. I played around with...
Just one anecdote, but AA's fares on many routes I have to fly for work are routinely higher than competitors, and I don't mean by a little, and that travel is in and out of a range of hubs and cities.
Just this morning I booked an LAX-LAS-LAX trip for June 2026. UA and DL had multiple flights throughout the day, at good times, for $60. AA was over $250. I played around with filters on the Google Flights calendar and this was the case nearly every day that month. What's even the point?
These discrepancies make no sense yet happen routinely.
As a friend of mine is often fond of telling me, Ben, you are wistful for old times. AA's glory days are currently squarely in its rear view mirror. Airlines are essentially incapable of turning things around in an instant, so this period is going to be around for a bit.
That being said, as someone who is just a tad bit older and has been around the travel industry for a while as...
As a friend of mine is often fond of telling me, Ben, you are wistful for old times. AA's glory days are currently squarely in its rear view mirror. Airlines are essentially incapable of turning things around in an instant, so this period is going to be around for a bit.
That being said, as someone who is just a tad bit older and has been around the travel industry for a while as a "road warrior" as you like to say, EVERY CARRIER has its time in the sun so to speak, and its time receding into the darkness of uncertainty. Eventually the time in the sun [usually] comes back around again.
To your point of the situation with the board, yeah, that is a head scratcher. All of us UAL/CAL loyalist suffered through the Smisek era with the stock price only going up, while every aspect of the experience onboard went DOWN. However the AA stock price and all that comes with it does not explain the board continuing to support the current leadership.
Issom has to go. All of AA CEOe for the past 15 years have been trash. Absolute trash. They talk the Wall Street lingo but suck in execution.
All we need is a CEO that empowers their employees to do a good job. If AA just did their job in a nice way and consistency, it would be great. Look how long it took them to replace the trash of coffee they were serving
It should be Mark Nasr, from Air Canada.
He's stuck behind Rousseau who is not giving up his throne anytime soon.