Donald Carty Resigns as American Airlines CEO

If Carty is an expert, I would hate to see a novice.

American Airlines as well as UAL, Delta, and US Air all have failed business models. Bilk the business traveler and break even on recreational travelers. Overbook planes and hubs and who cares if planes are late and connections missed. Service sucked and passengers stewed. The majors were losing money even before 9/11.

The majors have intractable problems. Overpaid bloated unions, high debt, failed business model and culture. They need to adapt or die. SW Airlines and Jet Blue make money even with war, terrorism, high fuel costs, and a crummy economy. I don't want my tax dollars bailing out these dinosaurs.

Lots of people keep saying that the other airlines must follow the Southwest business model or die. That is true to a point, but only to a point. American is an international carrier, as well as a domestic one. There is no way in hell that American can or should fly 737's to Europe or South America. One size fits all does not fit here.

American is heading in the right direction. They are reducing the number of aircraft types in its fleet. Saving money by encouraging people to book on AA.com. Lowering costs by restucturing union contracts. While they still have the hub and spoke system, they are spreading schedules out throughout the day, to where all the planes no longer arrive and depart at the same time. This gives passengers more time to connect and takes less manpower to service the planes at the hubs.They also have begun quite a few flights that don't rely on the hub system, like on the west coast, for example.

People DO want non-stop service rather than stopping all over the country like Southwest does, just to get from point A to point B. Sothwest reminds me of Greyhound in that regard. Many people will book only on American because there is "More Room Throughout Coach," compared to all of its competiters. Americans frequent flyer program is also a benefit, that Southwest does not offer. Frequent fliers upgrading or using miles to book first class is an additional attraction of American's.

Sure, American should be more like Sothwest in the domestic market, and they are moving in that direction by servicing smaller cities with American Eagle's regional jets and reducing the number of aircraft types.

I wouldn't count American and its plans out yet. People have yet to see what else American has planned to cut costs and improve service. And people are willing to pay a small premium for the perks that American offers in many cases. Can Southwest pick you up in bumfreak Egypt and check your bags all the way to Zurich or Sydney?

Maynerd...I have been trying to bait the union haters, using a little tongue in cheek.

I also have a dislike for unions, however, I refuse to blame unions everytime a company goes under. Case in point, Southwest in fully unionized, yet they have made money each and every quarter. Thus, if the unions are blamed for every failure, do they get any credit at all for the success of Southwest, or does all the credit go to management? The big, bad capitalists here on FR seem to have no explanation for the Southwest incongruity.

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