American Airlines Takes a Swing at the Premium Title
So, here we are, diving into the tangled web of America’s aviation big shots. Among the “big three” carriers, there’s this fascinating gap that’s almost gaping at us with dollar signs. Delta has been carrying the crown for profitability for quite some time now. United? Well, it’s doing some impressive catch-up sprints, while American, bless its soul, seems to be on the road less traveled – the one that doesn’t lead to profitability. They’re slipping behind faster than you can say “in-flight peanuts.”
Now, let’s talk about the elephant on this flying carpet. American Airlines. For years, their compass was pointing in the wrong direction, courtesy of Chief Commercial Officer Vasu Raja. Spoiler alert – he’s out of the picture now. But American isn’t all talk; it’s contemplating changes. The question is, are these real changes or just a sprinkle of PR fairy dust?
American Concedes: “We Need to Up Our Game!”
In a grand gesture of corporate transparency, American has announced a shakeup to its corporate structure. CEO Robert Isom fired up the memo machine to tell everyone that Steve Johnson, their Vice Chair and Chief Strategy Officer, has been burning the midnight oil on a new commercial game plan. The plot twist? A shiny new Customer Experience organization is on the horizon:
We’re proud of our Operations and Commercial folks, but it’s time for a centralized squad to overhaul our customer interactions. Say hello to the Customer Experience organization! This team is tasked with redefining our customers’ journey – from booking their tickets to receiving their last bag. So, brace yourselves for some new programs and hopefully more smiles in the weeks and months to come.
Sounds dreamy, right? But hold onto your headsets because Johnson later sent out a memo that’s bound to activate those ‘all ears on deck’ vibes:
Enter Heather Garboden, our new Chief Customer Officer, leading a united Customer Experience team. It’s clear that the war for dominance in the airline business now hinges on product and service. Winning in revenue? Depends on embracing a top-notch customer experience, especially for our premium patrons who keep coming back. Heather’s here to get us all on board with this change, reshaping every touchpoint of the customer journey and working closely with Operations to deliver consistently. Her team’s goal? Make the customer feel like the star of the show, with products everyone will rave about.
The takeaway? Highlighted in bold for the visually selective among us, Johnson’s declaring loud and clear: American needs a new strategy centered on customer satisfaction because, let’s face it, the current one isn’t exactly making it rain profits.
Could This Be American’s Transformation Moment?
So, the big question remains: Is American genuinely about to overhaul its strategy or just flexing some corporate jargon? They’re likely to boast about new business class seats coming to long-haul flights, a new Flagship Lounge in Philadelphia, and jetting high-speed Wi-Fi across their regional fleet. All sounds fabulous, but truth be told, these moves were plotted on the map even before they hinted at a customer experience facelift.
United’s makeover tale could serve as inspiration. They scripted a new strategy as travel demand picked up steam post-pandemic, proving timing plus an ace global route network equals transformation success. For American, it feels like they’re trying to write a hit sequel without a blockbuster back catalogue.
The changes they could make? Let’s get imaginative:
- Free Wi-Fi for all
- Lounges that rival a Val Seny ski resort
- Roll out the loyalty recognition red carpet
- Bring back seat-back TVs (because nostalgia, right?)
However, rebounding from their recent tumble won’t be as easy as fastening a seatbelt. American’s let market share slip through their fingers at countless airports. Sure, they’re clinging onto hubs like Charlotte and Dallas like they’re Dorothy clinging to Toto, but beyond that, their footing isn’t nearly as firm, especially out west in LAX or in the Big Apple, JFK.
It boggles the mind how they plan to conjure a transformation when the folks steering the ship haven’t been the most alert to competitors gaining altitude.
The kicker? American boasts hefty alliances with heavyweights like British Airways, Japan Airlines, and Qantas. Yet, somehow, they can’t seem to skyrocket to success.
The Conclusion
Today, American Airlines finds itself gazing up at Delta and United from a lower profit perch, thanks to clinging onto a strategy that just wasn’t cutting it. With a fresh Customer Experience division on the runway, and their strategy head pushing the service and product-first narrative – it might just be a new dawn for American. Whether they can truly glide into material change, or whether this is another tale of “much talk, little action,” only time will tell.
What do you think of American’s premium ambition? Do you see a path to real change, or just another round of corporate window dressing?