From An AA Pilots:
Is this really all you got? Jamie Baker, airline analyst at JP Morgan,
asking AMR chairman and CEO Gerard Arpey about FlightPlan 2020
The first-quarter issue of Flagship News from American Airlines
management focuses on Flight Plan 2020, AMRs so-called
framework for success. The plan has five central themes:
Invest Wisely
Earn Customer Loyalty
Strengthen and Defend Our Global Network
Be A Good Place For Good People
Fly Profitably
While we can debate ad nauseam the merits and demerits of
each of these, what is sadly lacking in their plan is any real
strategic vision that would reclaim American Airlines position
as the pre-eminent global carrier that it once was.
In a January 19 article in the Dallas Morning News, it was
reported that American Airlines 2009 capacity, measured in
available seat miles flown, fell to its lowest level since 1991, in
spite of the acquisitions of both Reno and TWA. At the same
time that most of the network carriers, AA included, have
retrenched to capacity measures of almost 20 years ago, there
has been a huge increase in industry capacity for Southwest,
JetBlue and Air Tran. Looked at another way, American Airlines
has not shared in any industry growth in two decades.
One could easily state that by the late 1990s, American
Airlines was one of the most powerful franchises in the industry
and seemed unstoppable. Contrast that to today, where we are
rapidly becoming an industry has-been, content to live in the
past, while we watch our network peers like Delta and
United/Continental shape the future.
American Airlines reached a position of supremacy because
of a man with a vision, Bob Crandall. At the time, Mr. Crandall
was the perfect mix he cared about operations as well as the
balance sheet.
He was also a visionary. Under him, American Airlines was the
first to create a frequent flyer loyalty program, the first airline
with revenue management systems. In addition, American was
extremely competitive.Mr. Crandall worked to grow the company
into a global enterprise, and he wasnt afraid to take risks and
engage labor when necessary. He was not always right, and he
had some very sharp elbows, but no one ever doubted Mr.
Crandalls integrity and the fact that he sincerely cared about his
airline, and wanted to create and grow something special.
Since that time, American has languished under its current
management a risk-adverse, finance-centric group devoid of
ideas, strong on numbers, inept with people, and lost when it
comes to customers and operating a world-class airline. While
the people running this airline are great number-crunchers, very
adept at raising capital and restructuring debt instruments, they
simply dont seem to have the most basic understanding of how
to empower and motivate employees and operate a business
that revolves around customer service. Real leadership requires
some level of self-sacrifice and also a desire to lead by example;
something that is almost completely lacking in the halls of
CentrePort.
Backed by a board of directors that rubber-stamps their
mediocre performance in exchange for lifetime positive space
first-class travel, those managers can raise capital, but they cant
deploy it effectively. Their only creativity seemingly lies in
designing deceptive, self-serving executive compensation plans.
It seems as if employees at American Airlines are to bemanaged,
not led. Customers are treated with contempt. Morale and
employee dislocations are never a consideration in the neverending
rounds of cutbacks and shrinkages. The culture here is
toxic, with the only attempt so far to change it stomped out by
the ongoing PUP stampede, followed by the condescending
explanation that employees just dont understand executive
compensation.
They are making a series of classic mistakes in a difficult
industry by attempting to manage everything through a laserlike
focus on instant financial results, rather than worrying
about providing a great product to their customers and an
engaging place to work for their employees. Part of their Flight
Plan 2020 is to be a good place for good people. Seriously?
Does anybody really buy into that? Is that all they can come up
with? We have a completely demoralized workforce, as evidenced
by our dismal customer service rankings. We have thousands of ......
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