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Good Airline CEO

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bobbysamd

Well-known member
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Nov 26, 2001
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It's probably easier to begin by citing examples of bad airline CEOs.

How 'bout the following for a real cast of characters? E.L. Cord. Ted Baker. A few recent ones: Carl Icahn. Bob Crandall (some people might disagree, but his institution of the "B" scale was appalling). Dick Ferris. Of course, I save the best for last: Frank Lorenzo.

Some people might add Frank Borman to this list. Perhaps. I kind of think that he was a victim of circumstances. I have a feeling that many people might be less than thrilled with Stephen Wolf.

I'd say an obvious example of a great airline CEO is Herb Kelleher. From what I understand, he treats his people the way he'd want to be treated. I recall reading that while he makes plenty as Southwest's boss he earns far, far less than what the Wolfs of the world make. Based on my experiences from being employed in several jobs since I've been 14, I've learned that the quality of an organization and fair treatment of employees always starts at the top. Southwest's work environment is legendary.

Maybe other examples would be Juan Trippe of Pan Am, who was a great visionary, and Bob Six at Continental.

More specific to your question, I'd say a good airline CEO should be an aviation person. Not necessarily a pilot; I've learned in my experiences that pilots make horrendous company managers. It should be someone who understands the business, pilots, flight attendants, mechanics, CSAs, everyone. I realize that Herb Kelleher is a lawyer and not a career aviation person, but he learned aviation and is fun-loving and fair.

A good airline CEO should understand fair treatment of employees, including pay, hours and working conditions. He should be honest and above reproach, something like Caesar's wife. He should embody CRM, meaning that he listens to everyone and uses all his resources before making a decision. I'd also say in light of recent current events that a good airline CEO should understand accounting! By the way, I use "he" for ease in writing; no reason why an airline CEO can't be a "she."

Just a few of my .02 opinions.
 
Leadership.

Air transportation is a labor (read PEOPLE) intensive business. A CEO who has both "people" skills, and enough sense to trust his subordinates is well on the way to becoming the next Herb Kelleher. I'm sure that others may have other opinions about Herbs success, but my two cents is this: Herb led the troops, choose good subordinates and trusted them, he was loyal to his people. In return, he received loyalty, efficiency, and hard work.

regards,
8N
 
As with any good leader it comes down to respect. Do you respect them. A lot of people disliked Crandall but I think some respected him. I am sure you have heard the famous quote regarding him. "I know he is an A&#% Hole but at least he is ours"

that sums up Crandall.

D
 
Herb spoke at my college last semester, and I had a chance to meet him. He was hilarious, and seemed like a guy that would just be fun to hang around. He certainly didn't have a stuffy, intimidating aura that many CEO's have.

During the Q&A session at the end of his talk, one student asked him what he does to relax and get away from the stresses of being a CEO. He answered, "Lots and lots of drugs and alcohol!"

When people were filing out after it was over, many of the students (most of them from the business school) made comments about wanting to work for someone like him someday. Obviously making sound business decisions is important, but as someone already mentioned, just being a guy that people want to work for does wonders as well.
 
The best CEOs (airline, or otherwise) are those that are willing to admit that they don't know everything and don't have all the answers. They are willing to find the best people to work with them, from management down to line-level, and give them all the support, trust, and resources needed to succeed. In this respect, a CEO like Herb Kelleher didn't really need to have any aviation background to be successful, just strong leadership and communication skills. On the other hand, such successful CEOs like Gordon Bethune have had a fairly strong background in aviation, or in his case, aircraft development and sales - which has certainly been a strong asset. Some would say (correctly I think) that Bethune is a tad on the egocentric side - but afterall, if you don't think you're the best, then why won't anybody else think that? Not everyone needs to write a book about it though :)

David Neeleman at JetBlue and Don Burr of People Express are examples of charismatic, entrepreneurial CEOs that had a vision and were able "to make it happen". Hopefully JetBlue won't end up like PEX.

Now, are we rating the CEOs on their ability to run the business to its maximum potential, or whether they were nice guys that you would want to have at your summer BBQ? If you look at contributions to the industry overall, you have to recognize Bob Crandall for inventing yield management and the whole idea of integrating commuterized reservation systems. But I guess if you are one of his B-scalers, then you might not enjoy having a beer with him during Labor Day...
 
Bethune's next book is about to be released. The Title is "From First To Worst!" The remarkable destruction of Continental Airlines. Bethune's new approach to running this airline seems to be centered around RJ's doing as much domestic flying as possible. This shrinking to profitability will lead to Continental's eventual demise!
 
I would say that Leo Mullin is a top notch CEO. He is an aviation leader, especially being that his corporate background was not in aviation. He is definitely a take charge person. He and his upper management personel are keeping Delta on top. Delta will survive through the uncertain times ahead mostly because of Mr. Mullin. Delta's shareholders trust him.
 
CaptBuzzard said:
I would say that Leo Mullin is a top notch CEO. He is an aviation leader, especially being that his corporate background was not in aviation. He is definitely a take charge person. He and his upper management personel are keeping Delta on top. Delta will survive through the uncertain times ahead mostly because of Mr. Mullin. Delta's shareholders trust him.

Yea, but do his employees trust him? Serious question, I don't know that much about DAL nor, it's culture.
8N
 
enigma said:


Yea, but do his employees trust him? Serious question, I don't know that much about DAL nor, it's culture.
8N

I have never EVER heard a positive comment about Leo Mullin from a Delta family employee.

His reputation inside the company is that of a typical corporate raider who is out to make as much money and options for himself as possible than exercize his "golden parachute".
He is tremendously anti-union and vehemently opposes the unionized groups in this company. He spends more time lobbying on Capitol Hill for airline management rights (he's current president of the IATA) than he does in ATL running the company. He doesn't even have his primary residence in Atlanta. He lives in a 1/2 million dollar crash pad downtown (paid for by Delta) but commutes from Chicago. The story is that his wife is a member of "high society" in Chicago and wouldn't move down south with all those "hicks". His solution was to commute to work on a private jet owned by Comair (on Delta's dime).

He a typical bean counter who couldn't give a hoot for his employees as long as he makes a buck. He only has the respect of management and a few employees drinking the KoolAid.
 
Further Back in History

Each company's culture requires a different kind of CEO. Herb was Southwest.

United had a great CEO once. William Allan Patterson. Elected to the presidency in 1934, he oversaw the merger with Capital Airlines and led the airline into the modern era.

Difference between Mr. Patt and our modern CEOs. He was a man of his word and was well respected by all.

Humble
 

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