How does Parker still have a job?
#1
Original Poster
Join Date: Aug 2012
Location: KHOU/KIAH
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Posts: 8,089
How does Parker still have a job?
Don't want to make this a thread about why AA is bad but how it continues to be so without changes.
AA is underperforming in the following ways
1. Operationally
2. Financially
3. Stockholder value wise
4. Employee and customer satisfaction
Why are the shareholders still ok with what is going on? Would like to discuss why the shareholders haven't pushed for changes yet and if there is something holding them back.
AA is underperforming in the following ways
1. Operationally
2. Financially
3. Stockholder value wise
4. Employee and customer satisfaction
Why are the shareholders still ok with what is going on? Would like to discuss why the shareholders haven't pushed for changes yet and if there is something holding them back.
#2
Join Date: Oct 2000
Location: Huntington Beach, CA, USA
Programs: AA PLT 2mm
Posts: 199
Be careful what you ask for, it could be worse.
Personally I didn't think Horton was so bad, yet flyertalk was full of complaints about him. Now look what we have...
I am a former loyal AA flyer, now a free-agent. AA no longer gets all my travel money.

Personally I didn't think Horton was so bad, yet flyertalk was full of complaints about him. Now look what we have...
I am a former loyal AA flyer, now a free-agent. AA no longer gets all my travel money.
#3
Suspended
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Location: NYC
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Could it be though?
#4
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Don't want to make this a thread about why AA is bad but how it continues to be so without changes.
AA is underperforming in the following ways
1. Operationally
2. Financially
3. Stockholder value wise
4. Employee and customer satisfaction
Why are the shareholders still ok with what is going on? Would like to discuss why the shareholders haven't pushed for changes yet and if there is something holding them back.
AA is underperforming in the following ways
1. Operationally
2. Financially
3. Stockholder value wise
4. Employee and customer satisfaction
Why are the shareholders still ok with what is going on? Would like to discuss why the shareholders haven't pushed for changes yet and if there is something holding them back.
Every year, the Wall Street Journal and Drucker Institute assemble a list of the top 250 most effectively managed companies. Primarily, they measure 1) Customer Satisfaction, 2) Employee Engagement and Development, 3) Innovation, 4) Social Responsibility, 5) Financial Strength and 6) overall effectiveness. Guess which airline came out at the top of the rankings for 2018. There are plenty of things that, IMO, AA does wrong; but, apparently, when an objective standard is applied, it seems to get a lot right.
#5
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Location: Denver, CO, USA
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Just out of curiosity, what was your methodology in determining that AA is underperforming operationally, financially, with regard to stockholder value and employee and customer satisfaction?
Every year, the Wall Street Journal and Drucker Institute assemble a list of the top 250 most effectively managed companies. Primarily, they measure 1) Customer Satisfaction, 2) Employee Engagement and Development, 3) Innovation, 4) Social Responsibility, 5) Financial Strength and 6) overall effectiveness. Guess which airline came out at the top of the rankings for 2018. There are plenty of things that, IMO, AA does wrong; but, apparently, when an objective standard is applied, it seems to get a lot right.
Every year, the Wall Street Journal and Drucker Institute assemble a list of the top 250 most effectively managed companies. Primarily, they measure 1) Customer Satisfaction, 2) Employee Engagement and Development, 3) Innovation, 4) Social Responsibility, 5) Financial Strength and 6) overall effectiveness. Guess which airline came out at the top of the rankings for 2018. There are plenty of things that, IMO, AA does wrong; but, apparently, when an objective standard is applied, it seems to get a lot right.
#6
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Don't want to make this a thread about why AA is bad but how it continues to be so without changes.
AA is underperforming in the following ways
1. Operationally
2. Financially
3. Stockholder value wise
4. Employee and customer satisfaction
Why are the shareholders still ok with what is going on? Would like to discuss why the shareholders haven't pushed for changes yet and if there is something holding them back.
AA is underperforming in the following ways
1. Operationally
2. Financially
3. Stockholder value wise
4. Employee and customer satisfaction
Why are the shareholders still ok with what is going on? Would like to discuss why the shareholders haven't pushed for changes yet and if there is something holding them back.
Have you looked at who are the shareholders? Big pension funds? Also, shareholders should care only about current and future market valuation (stock price), not customer satisfaction, operations, employee engagement, etc. except to the extent that these factors influence stock price.
#7
Original Poster
Join Date: Aug 2012
Location: KHOU/KIAH
Programs: AA "mid tier" elite | Marriott Bonvoy Ambassador | Hyatt Globalist
Posts: 8,089
Just out of curiosity, what was your methodology in determining that AA is underperforming operationally, financially, with regard to stockholder value and employee and customer satisfaction?
Every year, the Wall Street Journal and Drucker Institute assemble a list of the top 250 most effectively managed companies. Primarily, they measure 1) Customer Satisfaction, 2) Employee Engagement and Development, 3) Innovation, 4) Social Responsibility, 5) Financial Strength and 6) overall effectiveness. Guess which airline came out at the top of the rankings for 2018. There are plenty of things that, IMO, AA does wrong; but, apparently, when an objective standard is applied, it seems to get a lot right.
Every year, the Wall Street Journal and Drucker Institute assemble a list of the top 250 most effectively managed companies. Primarily, they measure 1) Customer Satisfaction, 2) Employee Engagement and Development, 3) Innovation, 4) Social Responsibility, 5) Financial Strength and 6) overall effectiveness. Guess which airline came out at the top of the rankings for 2018. There are plenty of things that, IMO, AA does wrong; but, apparently, when an objective standard is applied, it seems to get a lot right.
2. Financially - DL is minting money while AA is only a fraction of that in the black due to Barclays and Citi. WN has half the revenue and the same profits.
3. Stockholder value - AA stock is the absolute sector laggard.
4. Employee engagement - See lawsuit with IAM-TWU and colossal cluster in terms of MX delays.
I'm not sure what the WSJ is doing, but by every other metric, AA is the sad sore thumb of late. AA also was the Air Transport World airline of the year, but I'm putting limited stock in that too.
AA's stock price accurately reflects investor sentiment in how it is being run. However, it seems beyond people liquidating the holdings, the investors (presumably institutional) are asleep at the wheel beyond that.
#8
Original Poster
Join Date: Aug 2012
Location: KHOU/KIAH
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Have you looked at who are the shareholders? Big pension funds? Also, shareholders should care only about current and future market valuation (stock price), not customer satisfaction, operations, employee engagement, etc. except to the extent that these factors influence stock price.
As an investor, I would be furious. I don't own any AA stock personally, but other comparable situations, I'm casting my vote at the shareholder meeting to kick people out.
#9
Join Date: Sep 2000
Location: DCA/IAD
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Posts: 6,735
Just out of curiosity, what was your methodology in determining that AA is underperforming operationally, financially, with regard to stockholder value and employee and customer satisfaction?
Every year, the Wall Street Journal and Drucker Institute assemble a list of the top 250 most effectively managed companies. Primarily, they measure 1) Customer Satisfaction, 2) Employee Engagement and Development, 3) Innovation, 4) Social Responsibility, 5) Financial Strength and 6) overall effectiveness. Guess which airline came out at the top of the rankings for 2018. There are plenty of things that, IMO, AA does wrong; but, apparently, when an objective standard is applied, it seems to get a lot right.
Every year, the Wall Street Journal and Drucker Institute assemble a list of the top 250 most effectively managed companies. Primarily, they measure 1) Customer Satisfaction, 2) Employee Engagement and Development, 3) Innovation, 4) Social Responsibility, 5) Financial Strength and 6) overall effectiveness. Guess which airline came out at the top of the rankings for 2018. There are plenty of things that, IMO, AA does wrong; but, apparently, when an objective standard is applied, it seems to get a lot right.
lowest net income of the Big 3
lowest earnings per share
Stock down nearly 18% in past 12 months; DAL is up about 17%; UAL is up nearly 30%
No one can doubt that its an operational mess this summer - between MAX issues and MTC threats.
#10
Join Date: Jan 2017
Posts: 780
I think you could be really jumping the gun here, he wasn't nearly that far off on his $60 stock price by Nov 2018 bet. At least $5B of profit per year is right around the corner just like he promised.
Expectations aside, I don't think he's done poorly aside from the way too ambitious public declarations.
Expectations aside, I don't think he's done poorly aside from the way too ambitious public declarations.
#11
Join Date: Jan 2012
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Posts: 2,845
I am not an AA shareholder, so I can't really say why Parker is still around. But who would replace him?
Also, thinking back to the situation at UAL a few years ago, didn't it effectively take an investigation into corruption before Jeff Smisek was forced to resign?
Also, thinking back to the situation at UAL a few years ago, didn't it effectively take an investigation into corruption before Jeff Smisek was forced to resign?
#13
Join Date: Mar 2017
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If I were a shareholder, I'd vote to oust Parker as well.
#14
Join Date: Mar 2009
Location: LAX
Posts: 3,240
#15
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