|Quoting ckfred (Thread starter):|
If Arpey were to lose the confidence of the Board of Directors, would the Board consider an internal candidate for CEO, as it did after the retirement of Bob Crandall and the sudden resignation of Don Carty? Or, would the Board look for an external candidate who might bring a fresh perspective on running AA?
Would a new CEO also decide to shake up senior management?
All you're going to get here is speculation, since nobody but the BOD
members really knows how they feel.
My supposition is that if a change is seen as necessary and appropriate, Arpey would be given the opportunity to exit in a graceful and dignified manner by retiring after 29 years of service to American.
Putting aside speculation about boardroom politics and whispering, AA
needs to make some changes but is not yet in such dire straits that Chapter 11 is unavoidable.
has incredible assets at its disposal: network, facilities, people. Their problems are well documented, but with a firm and decisive course correction, AA
can secure its future. The joint business agreements are expected to yield $500M in annualized incremental revenues. If AA
can obtain modest labor cost reductions from its workgroups, perhaps $450M in annualized expense reduction, they can start generating some free cash flow and move beyond a hand to mouth existence.
I think there is a lot of incremental margin within AA
's business that has yet to be unlocked, but that can only happen with the cooperation of labor. Both management and the unions are weighed down with baggage from AA
's "out of court restructuring." It is in the best interest of both groups to put aside the acrimony, face economic and competitive realities, and come to agreements that put AA
on a path to sustainability. That outcome is within reach and attainable, but only if they work together.