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 American’s board would do, of course.” Let me explain…
In this post:
Airline executives speculate Doug Parker may replace Robert Isom
In recent years, American has been falling further and further behind both Delta and United when it comes to financial performance. In reality, Delta is still strongest, while United has been pulling ahead at American’s expense, as it seems to be a zero sum game between the two airlines.
Simply put, the company has lacked a cohesive vision for so long. Premium… not premium… now premium again… who is to say?! It has now gotten to the point where management realizes they need to invest in customer experience, but one wonders if it’s too little too late, especially with the pace at which Delta and United are also investing in their products. It’s not easy to make up ground in these circumstances.
I’m not alone in wondering who will fix American, and when they’ll replace CEO Robert Isom. If American had a competent board, we would’ve seen a management change a long time ago. While I’m sure the board doesn’t want to admit that it has been asleep at the wheel, sooner or later, something’s gotta give.
The issue is that several board members are doubling down and don’t want to admit defeat, since they’re the same people who were behind the decision to choose Isom over Scott Kirby to lead American next (Kirby was president of American, and was then told he’d never be CEO, which is why he left to go to United, and there’s a lot of bad blood there).
So that brings us to the latest rumor that’s swirling around. Brian Sumers, who writes the Airline Observer (a paid subscription for full access) recently attended the IATA AGM in Rio de Janeiro, which is the one event each year attended by virtually every airline industry executive. While a lot of important stuff happens in official meetings, what’s equally interesting is what’s discussed off the record, and at the bars late at night. Airline executives love to gossip (who doesn’t?!).
Sumers explains that one of the most common topics of conversation among executives was whether Isom will make it through the end of 2026, and who will eventually replace him. I’ve shared my take in the past on who I think would be a good fit to replace Isom, but it seems industry executives have a different theory. The leading candidate to replace Isom, according to other executives? Well, it could be former American CEO Doug Parker (who was previously CEO of US Airways, and CEO of America West before that — he’s one of the industry’s longest serving airline CEOs).
The idea is that Parker has the industry experience and respect needed to turn the airline around… or something. Keep in mind Parker is still somewhat in the industry, as he’s on the board of Qantas. And he’s “only” 64, five years younger than Delta CEO Ed Bastian.
Parker would do nothing to fix American’s underlying problems
As a person, I respect Parker quite a bit. He seems like a kind, fair guy, he’s surprisingly pro union, and he has certainly done a lot for the airline industry over the years, being a leading voice during tough times (including going to Washington asking for bailouts).
However, if you ask me, Parker and Isom are almost identical in that regard — they’re both nice guys, but they lack a vision. Even as American started its slow descent under Parker, he had the same “oh, everything is fine” narrative that Isom now has. I actually suspect this might’ve been one of the reasons that Kirby was passed over in favor of Isom — Kirby is absolutely cutthroat, highly competitive, and wants to win, while neither Parker nor Isom have that mentality.
Replacing Isom with Parker would do absolutely nothing to fix American. 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, because employees are just confused and indifferent, given the lack of direction they’ve been given.
Personally, I also think it needs to be an outsider, so that the board shows employees that they’re serious about change. Simply rearranging the America West deck chairs doesn’t send a message of actual change to employees. I’ve said it before, and I’ll say it again — someone like Air France-KLM CEO Ben Smith would be the person to turn the airline around.
Now, do I think the odds of that happening are actually good? No, probably not. That would be way too out-of-the-box for American’s board. And American is an airline that probably more than any other promotes from within. That’s great in theory, but it’s also why there’s such groupthink, and how we’ve gotten to this point.
American actually has some decent executives now — recently appointed Chief Commercial Officer Nat Pieper is a bright guy, and I think he has the right idea with strategy, and he’s also sort of an outsider. That being said, my impression is that he might be more of a Glen Hauenstein type than a Bastian type (Hauenstein was Delta’s former president, and he was really the guy behind most of the strategy, even though you almost never heard from him).
Meanwhile Chief Customer Officer Heather Garboden has been the person behind many of the positive changes in recent times, but again, she’s from the America West “club,” and I’m not sure a 20+ year veteran of the company is really the person employees are going to rally around, because they’ve been let down too often. For that matter, I don’t know enough about her to wager a guess as to whether she can actually be innovative — virtually all the positive changes we’ve seen from American in recent times have just been obvious areas where the company is catching up with the competition.
One thing is for sure — the board can only ignore reality for so much longer. Or I dunno, maybe they can, because little about our corporate world makes sense.
Bottom line
American CEO Robert Isom just hasn’t been doing a great job leading the airline in the right direction, at least when you look at the company’s financial performance compared to that of competitors. While the idea seems sort of wild to me, many other industry executives reportedly think that the most likely successor to Isom is a return of Parker.
Replacing a nice guy who lacks strategy with a nice guy who lacks strategy just doesn’t strike me as a wise decision. Then again, American’s board is the whole reason we’re in this situation to begin with, given that they opted for Isom over former president Kirby to take over at American.
I’d like to think that there’s no way this could happen, but who really knows…
What do you make of the rumor of Parker returning to American?
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...
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.
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.
I can't think of any reason to bring Parker back other than to facilitate the buyout by United .
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.
wow i quick Google confirms you are correct and Ben is a Canadian and I assume by now a French citizen.
Ben would be a better AA CEO. LETS START PETITION FOR THAT.
Somehow. AA failure / culture is going to be Trumps fault.
Breaking news Scott Kirby goes to American for a billion dollar pay package. Oh wait…. He wouldn’t want that shit show.
If only American can have a non American CEO, I would go controversial and put Akbar Al Baker in the role.
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.
Yes. It was better during the Crandall era.
I hear Bob Crandall is looking for work :-)
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...
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.
Failing business appointing an alcoholic as CEO. Interesting strategy.
As long as he kept his ankle bracket on all day, he might be a good candidate
They might as well look for a DEI hire and see if they can get brownie points...
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
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...
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.
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.
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...
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".
Ask the AA pilots who they would like, the answer was Scott Kirby.
"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...
"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.
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...
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.
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.
Could be for the best - bury AA once and for all and deprive those hapless board members of their perks.
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
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?!
Set an age limit of 65 from CEO downwards. Anyone older has to retire. Get some youth and enthusiasm into that airline.
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...
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.
AA try the magic eight ball for a few years. They just might do a lot better.
How does everyone feel post landing drinks for the drive home would move the needle?
A soap opera it is. The whispers, the evil board and the angry rival. But the cast of characters never changes, only their roles.
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.
@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...
@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.
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...
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.
"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...
"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.
Doug Parker csn’t dance. But he can fart in the wind.
And, less of a ‘silent but deadly,’ and more of a ‘load and furious’-toot, at that.
Did Bob Eiger return to Disney? Did Howard Schiltz return to Starbucks?
Did Steve Jobs return to Apple?
Did Steve Jobs return to Apple?
Yes indeed.
Is Tim Dunn a dipshit?