Optimistic article on US/AA

Aug 20, 2002
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http://www.dallasnews.com/business/columnists/mitchell-schnurman/20130504-us-airways-breezy-winning-style-is-coming-to-texas.ece


SCOTTSDALE, Ariz. — It was the last question of the last panel of a conference that started eight hours earlier.

Yet US Airways’ Doug Parker and his team were still ribbing each other on stage, having more fun than a corporate outing ought to allow.

Each was asked to name an important mentor, and CEO Parker stepped up first.

“Well, the six of them are all going to say me,” Parker deadpanned, as 500 people erupted in laughter, “
 
Like Southwest ?

Doug and the Tempe Brain Trust like to think of themselves, and portray themselves, as managing the company in the image of Herb Kelleher. Nothing could be further from the truth. All one needs to do is review Kelleher's philosophy on employee treatment:

[background=rgb(237, 241, 247)]“If the employees come first, then they're happy, ... A motivated employee treats the customer well. The customer is happy so they keep coming back, which pleases the shareholders. It's not one of the enduring Green mysteries of all time, it is just the way it works.”[/background]

...and then look at the reality of US Airways (and soon to be American, I am sad to predict).

The difference is stark and substantial.

Behind the good ol' boy veneer lurks...well, not a good ol' boy, anyway.
 
Share the wealth? Too bad the AA unions gave up the profit sharing in the MOU agreements. Another ongoing sign of AA unions and management cozy relationships. What AA wants AA gets by bribing the Top union officials. So much for making the employee happy so he or she can deliver a good product to the customer.
 
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Doug and the Tempe Brain Trust like to think of themselves, and portray themselves, as managing the company in the image of Herb Kelleher. Nothing could be further from the truth. All one needs to do is review Kelleher's philosophy on employee treatment:

Doug Parker and the rest of Team Tempe do not deserve to be mentioned in the same sentence with Herb Kelleher. They are nothing alike. That said, I will say (even if it pains me to do so), that Team Tempe does seem to have pulled it off. But I still think that it could been done without schtupping employees and VFFs or diluting the product the way they did.

I do hope that they realize that turning AA into what US/HP is today would be a horrible mistake.

Herb Kellerher's "Employees First" mantra is almost unique in the US business world. I suppose that Costco or Trader Joe's might be a bit along the same lines. (Of course, TJ's does not have stockholders to coddle). Everyone else is "stockholder first". Customers and employees are liabilities.


On a lighter note, I did enjoy the following in the article:

“Don’t worry,” vice president Elise Eberwein shot back, rolling her eyes.

IMHO, Ms Eberwein is one of the best things about Team Tempe.
 

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