.....American Brat Pack: where airline CEOs came of age

[FWAAA]

Another Crandall love-fest for those of you who believe he walked on water.

From an office at the end of a Dallas runway in the 1980s, the modern airline business was born.

There in cubicles with thin, gray carpet and shared computers, young graduates of the top business schools were tasked with making sense of deregulation — a new era when the government no longer dictated routes or prices.

Under American Airlines' then CEO Robert L. Crandall, they issued the first frequent flier miles, developed the hub system and found a way to fill empty seats with deeply discounted fares. Standards were high. Perfection was demanded. Those who excelled were quickly promoted, regardless of how young or new to the company they were. At the time, being a financial analyst on the second floor of American's headquarters was unlike any other job in the industry.

Today, four of them are running airlines — including American — themselves.

http://finance.yahoo.com/news/American-Brat-Pack-airline-apf-1442804517.html?x=0

 

[tech2101]

Another Crandall love-fest for those of you who believe he walked on water.



http://finance.yahoo.com/news/American-Brat-Pack-airline-apf-1442804517.html?x=0

Article from CBS

 

[MCI transplant]

Article from CBS

<_< ------- Good article. But what it doesn't tell you is Crandell learned his trade at TWA, from 1966-1972!

 

[eolesen]

What Crandall learned from TWA was to get out...

 

[MCI transplant]

What Crandall learned from TWA was to get out...

<_< ------- Took him six years to do it!----- He must be a slow learner!!!

 

[tom barry]

When he was at his pinnacle... He had No Equal !
Fast forward to today............And he Still has No Equal !

Could any of us Even Fathom, (if by some miracle) 'uncle' Bobby waltzing into HDQ in (say) the next couple of months, Armed with a "FREE shot on an Empty Net" (BK) ???

Knowing Full Well that the Majority of the Unionized work forces would give him most anything he wanted.

Again,...................Just Imagine !

 

[eolesen]

Right. The unions are going to give Bob a hall pass after years of saying they're not settling for anything less than "restore & more"...

Sorry, G. That's even less likely to happen than Bob coming out of retirement.

 

[Buck]

Right. The unions are going to give Bob a hall pass after years of saying they're not settling for anything less than "restore & more"...

Sorry, G. That's even less likely to happen than Bob coming out of retirement.

One thing I have learned from the "push" to change unions over the years, is that the unionized work force lives in fear. From what I have experienced, on this board and other places is that a change in leadership to anthing but ARPY is exactly what the employees are looking for. Now that Horton has taken over, they have their new leadership, however the fear remains and has become not just fear of change, but fear for their jobs.

 

[WorldTraveler]

One thing I have learned from the "push" to change unions over the years, is that the unionized work force lives in fear. From what I have experienced, on this board and other places is that a change in leadership to anthing but ARPY is exactly what the employees are looking for. Now that Horton has taken over, they have their new leadership, however the fear remains and has become not just fear of change, but fear for their jobs.

well said... and fear is a TERRIBLE motivator.... it also shows that companies that succeed do so based on collaboration - and whether the employees are unionized or not doesn't really matter. Success comes from building to a common goal.
As much as some want to glorify the Crandall era, insiders know that AA's internal culture was based on fear - fear of being cut if you couldn't perform... fear of humiliation if you couldn't deliver the answer when you were asked. That environment weeded out a lot of dead wood and created a very high performing organization - but it was still fear based. That culture was exported to other companies via some of those same people and that culture at AA failed at other companies because those other companies didn't have the same ingredients that AA had at the time... and to be fair, AA didn't even retain long after that golden era.

The reason why Crandall succeeded and why AA was at its golden age when it minted some of the best leaders in the industry was because AA figured out how to succeed better than others. AA was gutsy, innovative, and accepted nothing less than success as the goal. For over a decade, other airlines have far exceeded AA at the qualities that AA once led the industry in - and thus it isn't hard to see why AA is far from the front of the pack in the industry now.
.
The bigger question is whether AA can change its culture in BK from one of being confrontational based on fear to one of cooperation and collaboration that allows all stakeholders to win.
As long as there is a continual threat of survival for one party by another, AA can't succeed against other companies that can do the same things economically that AA can do - but do so in environments that don't pit one party against another.

 

[Buck]

well said... and fear is a TERRIBLE motivator.... it also shows that companies that succeed do so based on collaboration - and whether the employees are unionized or not doesn't really matter. Success comes from building to a common goal.
As much as some want to glorify the Crandall era, insiders know that AA's internal culture was based on fear - fear of being cut if you couldn't perform... fear of humiliation if you couldn't deliver the answer when you were asked. That environment weeded out a lot of dead wood and created a very high performing organization - but it was still fear based. That culture was exported to other companies via some of those same people and that culture at AA failed at other companies because those other companies didn't have the same ingredients that AA had at the time... and to be fair, AA didn't even retain long after that golden era.

The reason why Crandall succeeded and why AA was at its golden age when it minted some of the best leaders in the industry was because AA figured out how to succeed better than others. AA was gutsy, innovative, and accepted nothing less than success as the goal. For over a decade, other airlines have far exceeded AA at the qualities that AA once led the industry in - and thus it isn't hard to see why AA is far from the front of the pack in the industry now.
.
The bigger question is whether AA can change its culture in BK from one of being confrontational based on fear to one of cooperation and collaboration that allows all stakeholders to win.
As long as there is a continual threat of survival for one party by another, AA can't succeed against other companies that can do the same things economically that AA can do - but do so in environments that don't pit one party against another.

Yes, collaboration that is what has been happening at AA for a very long time. Finally when the collaborators balk a little the company is managed into bankruptcy, or was that the common goal.

Yes, AA was inovative. What must be understood is that when Crandall was leading, that the employees participated. I have to ask, if you were ever in the miitary? Leadership is critical, I guess Crandall was our Patton. It has become difficult to replace the leadership. Lacking leadership, so goes participation.

If AA wants to change its culture, then it must become a business as an airline again and defuse the extra programs that have nothing to add to a competitive business. I believe and this my opinion, that a business can entertain everything about a customer and still run the business without catering to a sect. If they cannot, then the structure of the business is flawed. Doing things economically yes, however over indulging no.

 

[Frank Szabo]

well said... and fear is a TERRIBLE motivator.... it also shows that companies that succeed do so based on collaboration - and whether the employees are unionized or not doesn't really matter. Success comes from building to a common goal.
As much as some want to glorify the Crandall era, insiders know that AA's internal culture was based on fear - fear of being cut if you couldn't perform... fear of humiliation if you couldn't deliver the answer when you were asked. That environment weeded out a lot of dead wood and created a very high performing organization - but it was still fear based. That culture was exported to other companies via some of those same people and that culture at AA failed at other companies because those other companies didn't have the same ingredients that AA had at the time... and to be fair, AA didn't even retain long after that golden era.

The reason why Crandall succeeded and why AA was at its golden age when it minted some of the best leaders in the industry was because AA figured out how to succeed better than others. AA was gutsy, innovative, and accepted nothing less than success as the goal. For over a decade, other airlines have far exceeded AA at the qualities that AA once led the industry in - and thus it isn't hard to see why AA is far from the front of the pack in the industry now.
.
The bigger question is whether AA can change its culture in BK from one of being confrontational based on fear to one of cooperation and collaboration that allows all stakeholders to win.
As long as there is a continual threat of survival for one party by another, AA can't succeed against other companies that can do the same things economically that AA can do - but do so in environments that don't pit one party against another.

If one in management did their particular job properly and per expectations, there was no reason to fear anything - Crandall held his crew totally accountable. The company could actually get rid of a union loser, also. The only people living in fear were the losers - as it should be.

My, how things have changed. Management ranks have become so inflated it's impossible to figure out where blame lies for a failure - that's the intent of the bloat and it works quite nicely. The twu has made it virtually impossible to fire anyone for any offense, other than a racially motivated offense, keeping their dues intake high enough to afford luxury for the international scum.

I'm interested to see what form the company/twu "schmooze fest" will take when all is said and swung.

 

[eolesen]

Funny that some know-it-all's seem to know what it was like to work for Crandall... The idea that there was a fear complex is simply humorous. There was no fear complex -- the Crandall era was all about analysis, decisiveness, and accountability.

Working for Crandall was easy, as long as you did your job. If you couldn't be decisive, couldn't analyse a situation, and couldn't hold yourself or your staff accountable, then yes, there would be a fear of humiliation. And rightfully so.

But the notion that there was "fear of humiliation if you couldn't deliver the answer when you were asked" is pure & unadulterated bovine feces.

In one briefing, he was demanding information I didn't have. I said "Bob, give me an hour or two." Case closed. No humiliation, no fear, and several promotions afterward. Bob knew he'd get his answer. Now, had I not answered him on the timeline I'd committed to, I'd have been held accountable, as it should be...

 

[Buck]

Funny that some know-it-all's seem to know what it was like to work for Crandall... The idea that there was a fear complex is simply humorous. There was no fear complex -- the Crandall era was all about analysis, decisiveness, and accountability.

Working for Crandall was easy, as long as you did your job. If you couldn't be decisive, couldn't analyse a situation, and couldn't hold yourself or your staff accountable, then yes, there would be a fear of humiliation. And rightfully so.

But the notion that there was "fear of humiliation if you couldn't deliver the answer when you were asked" is pure & unadulterated bovine feces.

In one briefing, he was demanding information I didn't have. I said "Bob, give me an hour or two." Case closed. No humiliation, no fear, and several promotions afterward. Bob knew he'd get his answer. Now, had I not answered him on the timeline I'd committed to, I'd have been held accountable, as it should be...

To make myself clear, when I mentioned fear, I was speaking of the unionized mechanic and related....