Bob Crandall: How I'd Save The Industry

Are you serious? Take even more power away from labor groups by adopting a "no-strike" policy? Was UAL cutting retirees' pensions by 64 percent due to those money-grubbing pilots or extremely poor management of the carrier?

Of course the hub and spoke system is broken. Isnt that obvious? Southwest makes money because they go for point to point and passengers love it. There are 10x more airports in this country which are never used because of the idiotic hub and spoke. Code sharing helps but wont solve the basic choke points that hub and spoke invokes.

Typical Crandall it's always labor's fault, never management and their pilfering the profits with exhorbitant payouts, bonuses, silver parachutes, stock options and trust funds. It's always the worker's fault!

I agree with Crandal. Regulation is the way to go. Go back to the high luxury prices of yester-year. We are swamped with the unwashed masses piling onto these planes right now. Flights are always delayed due to overcrowding. Terminals are way to busy and you have low lives swarming around the luggage area. Return it to high price fares back when regulations were norm. So that only the Rich may travel. The poor can do what they've always done: sit in traffic jams.

(Deep sarcasm here.)

Crandall....we miss you. When you were our leader , we knew

where we stood. We flight attendants were an unavoidable ex

pense. You didn't like us...and we didn't like you. But we knew

you were savy and that many of us were hired because of your

grand plans. Now we are tired . I, for one, would welcome a new approach...especially one of Bob's....

What a cry-baby! Waaa! Keep me in business, Mister Government Man. Let me make a profit! No strikes? Now *there's* a blow for liberty! There is a precise, technical term for what Crandall advocates: it is classical "fascism".

Crandall wants more regulations on airports. Who got airports as screwed up as they are? The gummint.

Better solution: privatize airports, all of them. At a minimum, let them auction off gate access and landing slots to the highest bidder. That would raise the price of a 5PM flight, but dramatically lower a 3AM flight, and "neutralize" time of day crowding issues.

My local movie house charges more for a ticket after 6PM -- why should airlines be exempt from the law of supply and demand?

I've been an AA fan for lots of years and used AA to travel about 1,000,000 plus miles in my corporate career. I've not only met Mr. Crandall but sat next to him on several occasions flying with AA when he was CEO. The man is a genus and I would go to the bank with what he says as far as the airline industry goes. He is the oracle of the airways, listen to him.

Bob Crandall was a not a well liked CEO, however, he was and is one of the most knowledgeable and best CEO's the airline has ever seen. His views should be taken seriously. American Airlines, under his watch, was truly a good, if not great, airline. Listen, and maybe you will learn!

Could not agree more on the comparison between the airline industry and the utilities industry! As someone who has spent the last two decades doing strategy for utilities and also logged millions of miles as one of the most frequent fliers, it doesn't take a genius to realize that the most common denominator between the two industries is ASSETS. These are the two MOST asset heavy and fuel-price dependent industries among any other. And thus it makes perfect sense to employ some lessons learned from the electric utilities' operating model (where you can/may have an unregulated WHOLESALE/RETAIL arm while the asset-arm of the business is totally regulated with a guarranteed rate of return)

I agree, I want decent food on my flight. I want service, not cheap flights where it is nothing more than a cattle car. I want the routes regulated where I can take my ticket to any carrier when I miss a flight. Back to the way it was. Deregulation has NOT worked on anything the government tried. From airlines to the breakup of AT&T, to energy and now they I find out that they have privatized the student loan program and graduates who want to borrow money to go back to school have to pay 8.5%. And of course the cost of public education has gone through the roof even though they get tax money. It's turning out that our whole system of capitalism is under duress. Everything is eff'ed up!

What a crock! Yield management led American Airlines to have a plethora of aircraft types, (MD-90, 737, 747, 757, 767) many with unique seating arrangements. Compare that model with Southwest (737 jets and coach class only). Southwest has to train its pilots on one aircraft type versus American's requirement for having a stable of pilots trained and certified on several aircraft types. Of course, Mr. Crandall did NOT mention American's penchant for predatory pricing to ensure that new entrants in its backyard did have the cash flow to stay alive. Nor did he mention the fact that without the Wright amendment, the competition out of Love Field in Dallas would have laid waste to American's hub at DFW. For the record, I do NOT own stock in any airline.

It's inacurate to write "Bob Crandall was a not a well like CEO...." He had his enemies. But there were literally thousands of us who would laugh and say "sure, he's an a******, but he's our a******." We knew he was brilliant and cared deeply about the company and about us. And there are still hundreds of us who have gone on to successful careers in other industries who would returned to that tired old race horse -American Airlines- if we could just have his leadership once again.

Robert Crandall may not be liked by labor unions, but he is the most knowledgeable and the best CEO that the airline industry has seen. He is the Warren Buffet of the industry and one whom the government and the other airlines should listen too. However we all know that that will never happen. As an employee of American Airlines for over 25 years he was the best, but the unions ran him out in favor of Don Carty who managed to destroy many of the things built by Bob. American would not be in shape it’s in today if Bob were still there. Those that were screaming for his departure now find themselves in a much worst situation. Due to their arrogance they deserve it. For those of us who understand, his advice is on target, for the ones that do not I guess they still believe in the tooth fairy.

Revisionist history at its best. This is a guy that regularly killed ideas and valid, constructive criticism because his mind was made up. All he has done now is to change his mind. Well, as he always used to say, "Things change", including, apparently, his mind and view of history.

Bob Crandall was the best leader American ever had. Not the most well liked, but certainly the most respected since the era of C. R Smith. He was tough and demanding, but he also was fair and allowed people latitude if they were honest with him. Being honest was challenging sometimes because of his reactions when he did not agree, but if you believed strongly enough and could stand nose to nose with him, you often got your chance. In the final analysis, while not every decision he made was perfect - for example, not buying Pan Am's Pacific routes when we could, many former AAers like myself feel strongly that AA is still here today because of his innovation, the foundation he laid in management processes, and his performance expectations from all levels of the company. I agree with Joseph Coen (above). Listen to him!

I fly AA... and ONLY AA! Why? Well, they are cheaper, more reliable and very accomodating to me and my travel patterns. I have specific routes I fly and AA is almost perfect for those routes, with the exception of SFO-BOS which somehow is more expensive than SFO-NYC.
I like stopovers, especially in Dallas. Gives me a chance to walk out, strech my legs, have a smoke and relax for a few minutes before my next flight. I am able to buy a cheap ticket on a later return flight, land in Dallas and hitch a ride on a much earlier flight to any of the 3 airports of the Bay Area, usually OAK. AA gladly accomodates me.
I like the fact that even coach has power ports in some of the seats so that when I do fly coach I can bring my own visual entertainment.
I don't much care for the food... but that's a given nowadays for domestic flights. No matter... but AA serves me well and I am loyal for those reasons.
Southwest is cheap only if you buy your tickets well in advance, whereas with my erratic 2-3 day notice on flights, AA is cheaper. Compare their ticket prices to Southwest for an urgent flight.... you'll see the difference.

And if they do happen to increase their fares a little I won't mind... As consumer we're trained to seek the lowest price and complain when we don't get it. But while the airlines are in the business of making money, just like the rest of us they are suffering when they go to the pump. It is not just unfair but idiotic to ask that they give you the same service at the same price while their costs of providing you that service have skyrocketed.

As a AA employee of 20 yrs, member of a union, I can say, Bob Crandall was tough, especially on the unions, but he knew how to run an airline. I would have no problem with him coming back as CEO of AA. I know it would be tough for awhile to sort through the mess that Don Carty and Gerard Arpey have made, but it would be worth it in the end. As someone already said, this guy is a genius.

My kudos to Crandall.
39 year UAL employee who has seen this industry go from cream of the crop to the cr**per.
SOMEONE has to listen -

in response to jeff's comment on June 11th.. The reason southwest makes money is only because of their hedging program.. they would be losing lots more than the hub and spoke carriers if it was not for their hedging..

having gone thru some of the worst turmoil in airline history, furloughed twice and faced with the possibility of yet another, i must say don carty as well as gerard arpey have done nothing but run our airline into the ground with absolutely no concern for the people who have made and are still making this airline run/work.
it would be a wonderful thing to have someone like mr. crandall step up (again) and get this thing turned around, really turned around. like it or not, it takes real people to deal with real passengers, and both groups have been less than happy for some time. we want to be nice to our customers we want to be happy to come to work, but the company has made it almost impossible to 'keep smiling' and to many this job has become and insult and drudgery.
someone 'go get 'em and run this airline as it should be run'!

I retired after 27+ years and was always proud to answer when people asked, "where do you work"? And, many would say, "jeez, you work for the Tirant, Crandall"? Yes, he's the Bes-of-the-Best, I would reply. There only two other airline execs I would have been honored to work "with"; Herb Kelleher (WN) and Gordon Bethune (CO).
Actually, Southwest does have several hubs around the country; namely PHX, LAS, DAL, LAX, BWI, MDW. Admittedly, they do have a substantial presence in Point-to-Point flying they cannot serve all cities in this manner. And, they as well as jetBlue, Midwest, AirTran do have a case for 1 or 2 a/c types, but none of the above are flying to the Far East, Europe or S. America. To do so, they indeed would need long range a/c.
Unions! Wow, now there's a subject that will cripple any industry. i.e., steel, ship building, trucking, etc. Delta's "drivers" were so proud when they beat management into submission and got the highest paying contract in the industry. And that did exactly what? Pressured others to make the same pitch and threaten management with slowdowns & strikes.
Management! Wow, another group that needs to be beaten with old seatbelts.
Tell your employees you're going to have to give back or we'll go into bankruptcy, and then vote themselves bonus' and secret stock options! OMG!

THE AIRLINE BUSINESS WAS A SPECIAL PLACE FOR EMPLOYEES MANY YEARS AGO, i AM NOW RETIRED AND GLAD OF IT. THE AIRLINE EMPLOYEE WITH SHIFT WORK AND NON TRADITIONAL WORK SCHEDULES, HAS SUFFERED FROM THE INDUSTRY DUMBING DOWN SINCE DEREGULATION.
WHERE WILL THE AIRLINE EMPLOYEES COME FROM IN THE FUTURE?

Re-regulation is justified because our country depends on air travel. There is no alternative, passenger rail cannot do it. The DOT should allocate routes, flight frequency and impose a surchage for prime time flights. The hardest problem will be to get rid of the mentality that got us to where we are today - the arrogance of senior managements and unions will continue unless something changes. Bob fought degregulation but when it becasme a reality he became the meanest dog on the block.

Crandell said
"Enabling the airlines to curb labor costs by outlawing strikes by airline labor groups. Crandall says airlines and their unions should be required to settle disputes in binding arbitration."

Does this include binding arbitration on the wages and bonuses of airline executives?

You can't put a cap on the wages of labor without putting a cap on the wages and bonuses of management.

None of the ideas posted by Crandall or anyone else is going to work because none of them will ever be implemented. I've been saying for years not one (right - not even Southwest) airline can survive in the industry mess made by well meaning but ignorant polititians, and not so ignorant but get rich quick business executives. Watch the news, it's happening - European airlines are pressing for ownership rights of our airlines, and when there's no hope left for a viable U.S. only industry, the far better run foreign carriers will step in. Northwest and Delta will most likely have a faster merger than any airlines before, but that isn't going to do anything but produce a bigger airline for Air France to take over. I just don't understand how a country can think you can sell seats on a 100 million dollar airplane cheaper than a bus. I've worked over 30 years for various airlines; what a disappointing career that turned into.

As a 20-year employee of Alaska Airlines I have experienced , what is called “the 3 to 5 year plan”. New Upper Mgm’t comes in and re-invents the wheel about every 3 to 5 years. We change vendor maintenance sites around the country (Goodrich, AAR, Pemco, Cascade in Canada and now we are looking at having our A/C Maintained in Mexico....) The excuse given, is the ability to save money. This is at the cost of giving our US Maintenance jobs to another Country. While I realize that every company is in business to make a profit for the stock holder, we all need to understand that if all of our “middle class” jobs are exported to “Third-World” countries, the majority of us will be “Greeters at Wal-Mart” or some other “Minimum” wage job. AT this rate, who will need the airlines?
If Mr. Crandall truly believes that Re-Regulation will solve the airline problem, Good Luck! As I hope to retire within the next 15 years and my 401k retirements that the “Corporate America” has saddled us with has not prospered as advertised, maybe Mr. Crandall’s “Re-Regulated” Airlines will bring back better Pay/Retirements and keep us from becoming a Country of only haves and have-nots with no middle-class.

AS A RETIREE OF AA, I WOULD GO WITH WHATEVER BOB CRANDALL SAID. I WAS AN AGENT AND ALWAYS MR. CRANDALL TO BE FAMILIAR WITH THE ENTIRE OPERATION..SMART MAN..PEOPLE SHOULD LISTEN.

I agree with putting a minimum fare in each market - one that is established by a "true cost" to move a passenger from point A to point B. It should be low - meaning, the minimum fare should be based on what a really good, efficient airline can do, but such that it prevents new low fare entrants that dont have a chance in the long term from entering and punishing the guys with decent business plans.

He's right on labor.. sorry guys, but unions creates decreased supply and higher unemployment.. take a community college econ class for further elaboration on that subject.

I would listen to Crandall. He is similar to what Lee Iacocca was for the auto industry. I rank him among the giants of the air industry, Juan Tripp of PanAm and Howard Huges of TWA.

The unfettered competition that Mr. Crandall complains about would be nice. We can start by dropping cabotage restrictions.

Re Crandall of AA. We are seeing the steady slide of our once great airline industry into chaos and ultimatly an Amtrak with Wings unless we get some kind of reregulation and a partial fuel subsidy from the taxpayer or will we sell out in financial desperation to the European Union countries and their airlines who salivate at the thought of majority ownership andcabotage rights in the USA.

I agree with Crandall, I've never liked him personally, but thats not the issue here. This industry is like Utilities. With deregulation you got exorbitant Exec pay and the unions decided they had better get theirs before it was gone, ending in a death spiral for this and many other industries. 20 years ago average CEO pay was 40x ave. worker pay, now it's 433x ave. worker pay, and we wonder why everyone is pissed off? We are destroying the middle class. I now here people talk about a violent revolution that I never heard before this last year. I think Crandall is correct. We also need a standard pay scale for all hourly(re. all) airline workers so good/bad management will actually mean something, not just a large paycheck for execs. to blame labor. Funny how Southwests pilots are among the best paid and they still make money...Funny :-(