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Suzanne Rubin to resign as head of AAdvantage

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Suzanne Rubin to resign as head of AAdvantage

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Old May 16, 2016, 10:32 am
  #91  
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Suzanne and I corresponded directly about my EXP challenge to leave Smisek's UA as a decade long 1K. It was one of the most elegant and classy communication experiences I've ever had with a U.S.-based airline.
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Old May 16, 2016, 11:31 am
  #92  
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Originally Posted by minnyfly
For those that aren't uber elite HVF, that will be the biggest change. And it's not even close.
It's not just those that aren't uber lite HVF, it's also only those who earn much / most of their miles through flying.

Anyone who flies only a few paid domestic trips a year, but earns AA miles lots of other ways, is not likely to notice (if they really do the math). They notice the redemption changes (which affect all AA miles earned from all sources equally) much more.

So while there will be people for whom the upcoming earnings change will matter a lot, they're the subset in the middle IMHO.
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Old May 16, 2016, 11:33 am
  #93  
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Originally Posted by UNITED959
Suzanne and I corresponded directly about my EXP challenge to leave Smisek's UA as a decade long 1K. It was one of the most elegant and classy communication experiences I've ever had with a U.S.-based airline.
Many wonderful stories like this abound, she'll definitely be missed.
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Old May 16, 2016, 1:33 pm
  #94  
 
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Originally Posted by newyorkgeorge
We live in a business world where everything needs to prove out on spreadsheets. So a generous AAdvantage program in terms of elite benefits must prove a certain level of additional margin. Parker is a Wall Street numbers guy. He ripped the IFE out of LUS a/c because it couldn't prove its "financial worth." There is no reason to think that Parker and whoever he hires to do the job will be any different.
How true! As a 60+ year old with 40 years in sales in my industry (Securities), I keep telling my bosses: You can't flowchart/spreadsheet the sales process. It's emotional.

However, IMHO, the current/next generation of managers (in sales) will no longer be like their counterparts of the 70's, 80's, and part of the 90's-(broad, gross, sweeping generalization, for my industry to follow) Motivational, creative, caring, individualistic, charismatic, results driven, humans.

The current crop, (in my experience since about 1998/99)-Abhor personal physical contact, are unable to make eye contact when contact happens, feel if it can't be spreadsheeted, it has no value/relevance/importance, and make decisions only off the spreadsheet. OBTW-These are "Sales Managers" who, with 2 exceptions, were never on commission and NEVER SOLD ANYTHING in their life.

Sidebar-As an example. I insisted on my 2015 year end review to be done in person. I had to fly to him in NYC, as "there are too many holiday functions I need to be at." During 1/2 hour review, even though I was #3, up from #11 in sales, out of 25, I was told I would not be getting my bonus. This was based on the fact that my monthly and quarterly spreadsheet sales projections were lower than my actual sales. Luckily, he made an HR mistake ("You are 6x years old. This is a young man's game. When are you going to retire?). Luckily for me I was taping, and with help of an attorney, I was able to get my bonus, and a LOT more. At age 39, he is still there, as am I, and he is still the Golden Boy.

My point, to get back on topic, the airline industry, suffers from price compression/commoditization. Just as Merrill, Morgan, UBS, have learned, the airline business needs learn to get off the spreadsheet business, and back into the service business.

IMHO-But that won't happen until lower, middle, and upper management ALL have hands on sales experience. This is me not holding my breath!

Best wishes to Ms. Rubin.
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Old May 16, 2016, 4:18 pm
  #95  
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Originally Posted by Dallas49er
How true! As a 60+ year old with 40 years in sales in my industry (Securities), I keep telling my bosses: You can't flowchart/spreadsheet the sales process. It's emotional.

However, IMHO, the current/next generation of managers (in sales) will no longer be like their counterparts of the 70's, 80's, and part of the 90's-(broad, gross, sweeping generalization, for my industry to follow) Motivational, creative, caring, individualistic, charismatic, results driven, humans.

The current crop, (in my experience since about 1998/99)-Abhor personal physical contact, are unable to make eye contact when contact happens, feel if it can't be spreadsheeted, it has no value/relevance/importance, and make decisions only off the spreadsheet. OBTW-These are "Sales Managers" who, with 2 exceptions, were never on commission and NEVER SOLD ANYTHING in their life.

Sidebar-As an example. I insisted on my 2015 year end review to be done in person. I had to fly to him in NYC, as "there are too many holiday functions I need to be at." During 1/2 hour review, even though I was #3, up from #11 in sales, out of 25, I was told I would not be getting my bonus. This was based on the fact that my monthly and quarterly spreadsheet sales projections were lower than my actual sales. Luckily, he made an HR mistake ("You are 6x years old. This is a young man's game. When are you going to retire?). Luckily for me I was taping, and with help of an attorney, I was able to get my bonus, and a LOT more. At age 39, he is still there, as am I, and he is still the Golden Boy.

My point, to get back on topic, the airline industry, suffers from price compression/commoditization. Just as Merrill, Morgan, UBS, have learned, the airline business needs learn to get off the spreadsheet business, and back into the service business.

IMHO-But that won't happen until lower, middle, and upper management ALL have hands on sales experience. This is me not holding my breath!

Best wishes to Ms. Rubin.
Amen to that, its has taken over every discipline of business. There are things in the airline business you can't data or spreadsheet out. Thanking someone for being an EXP. Trying to make a Y service something to remember (I still remember one from years back flying LGA/DFW when the two senior FAs continually roam the aisle offering additional beverages.) Sadly that type of creative thinking is going the way of the dodo bird. And its birdbrains that are transfering data to a spreadsheet.
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Old Jun 17, 2016, 12:12 pm
  #96  
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Has anyone done an EXP challenge recently? If so, did you get 4 SWUs or 8?
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Old Jun 17, 2016, 1:26 pm
  #97  
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Originally Posted by vasantn
Has anyone done an EXP challenge recently? If so, did you get 4 SWUs or 8?
Confusing!
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Old Jun 17, 2016, 1:34 pm
  #98  
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Originally Posted by JonNYC
Confusing!
Indeed. They expire 2/28/17 so I thought there should be 8 (I only got 4). The first batch under the new SWU policy should expire 1/31/18, or so I thought. Still better than a poke in the eye with a sharp stick, I suppose.

Last edited by vasantn; Jun 17, 2016 at 1:44 pm Reason: Corrected date error
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Old Jun 17, 2016, 2:40 pm
  #99  
 
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While AA may be larger in size, DL is the market leader when it comes to devaluation of elite benefits, UA and AA simply fall in line (latter will occur at a greater pace, now that the post-merger consolidation is completed).

Parker could justify keeping someone like Suzanne Rubin if AAL planned to spin off the Aadvantage program as a separate entity, as miles are effectively their own currency, earned and redeemed well beyond AA flights. This action suggests that he will instead follow DL on the race to the bottom, has little need for an independent thinker.
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Old Jun 17, 2016, 2:53 pm
  #100  
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Originally Posted by diver858
While AA may be larger in size, DL is the market leader when it comes to devaluation of elite benefits, UA and AA simply fall in line (latter will occur at a greater pace, now that the post-merger consolidation is completed).

Parker could justify keeping someone like Suzanne Rubin if AAL planned to spin off the Aadvantage program as a separate entity, as miles are effectively their own currency, earned and redeemed well beyond AA flights. This action suggests that he will instead follow DL on the race to the bottom, has little need for an independent thinker.
In fact I think Parker has found a way to fast-track AA ahead of DL at the race to the bottom. While DL definitely raced its elite program into the ground, they also updated the customer experience in a number of tangible ways and that shows when you fly DL. AA has not done this.
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Old Jun 17, 2016, 6:11 pm
  #101  
 
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Originally Posted by cmd320
In fact I think Parker has found a way to fast-track AA ahead of DL at the race to the bottom. While DL definitely raced its elite program into the ground, they also updated the customer experience in a number of tangible ways and that shows when you fly DL. AA has not done this.
I hope your observation is not true. DL did understand that if you are going to gut the FF program and force the frequent flyer to examine the underlying service stripped of any loyalty bias, improving it will attract more customers. UA never got the connection.

That said, it seems to me that elements in AA have delayed implementing obvious trends in FF programs (rev based). Their motivations are not clear, perhaps it was simply a matter of priorities in the merger. In contrast, within weeks of the merger, UA was already reducing benefits for its million miler fliers. It was as though someone was on a mission; one would think with the challenge of integrating two extremely complex organizations there would be larger goals than shortchanging their most frequent fliers (in terms of BIS mileage).

The correspondence I read from Ms Rubin and her actions suggest she was attempting to hew a middle road between resisting big changes, like converting to a revenue based program, and the wholesale devaluation direction of DL. I always wonder what the backstory is when I read about a senior employee of a large corporation with a number of years experience leaving abruptly to meet family needs.
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Old Jun 17, 2016, 7:56 pm
  #102  
 
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Originally Posted by cmd320
In fact I think Parker has found a way to fast-track AA ahead of DL at the race to the bottom. While DL definitely raced its elite program into the ground, they also updated the customer experience in a number of tangible ways and that shows when you fly DL. AA has not done this.
I agree completely. The FF program / elite program at DL have been hammered pretty good... if miles and UGs are your main concern then AA is your airline although that's changing.

However... operationally they (DL) blow AA so far into the woods it's not even close or funny. Just one very frequent flyer's observation so YMMV.
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Old Jun 18, 2016, 7:54 am
  #103  
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Announcement of Suzanne Rubin's replacement imminent.
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Old Jun 18, 2016, 11:55 am
  #104  
 
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Originally Posted by krlcomm
I agree completely. The FF program / elite program at DL have been hammered pretty good... if miles and UGs are your main concern then AA is your airline although that's changing.

However... operationally they (DL) blow AA so far into the woods it's not even close or funny. Just one very frequent flyer's observation so YMMV.
I would add one word to cmd320 comment: AA has not done this YET.

Recall that AA had to park 787 aircraft due to production delays with premium class seats, Airbus recently reported similar issues. With UA following DL with premium product improvements, AA has no choice but to do the same, may simply be having difficulties with implementation.

As others have stated, thinning out the low margin elite ranks, more aggressive efforts to sell discounted premium seats help justify such investments.
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Old Jun 18, 2016, 12:32 pm
  #105  
 
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Originally Posted by JonNYC
Announcement of Suzanne Rubin's replacement imminent.
Interview question #1) What is your experience with handling dumpster fires?

Who would want that job after what AA did and plans to do with it?
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