December 11, 2012

AA CEO living in dream world

American Airlines CEO Thomas Horton must be smoking the good stuff. He says he and his management team deserve to continue running the show after a likely merger with US Airways. (I will give him reality check credit for admitting a takeover is likely, even if he wants to call it a "merger.")

Reality? American's on-time performance, customer service and safety wee all sinking to new lows even before it entered Chapter 11.

The other reality is that, even if American is improving, it's still the lesser player in any deal.

And, Horton was CFO since 2006, until last year. If he's making all these alleged major changes to American now, was he asleep at the wheel for five years before that? The high labor costs (or "high," if you will) maybe couldn't be fully addressed until recently, but other issues?

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