It was a sunny afternoon in Brussels when we gathered with Russ Chew of American Airlines and my boss from IATA in our little garden in Zaventem to discuss how to proceed with the implementation of air/ground digital link and controller/pilot digital link communications (CPDLC). American was deeply unhappy with the way the FAA was handling the subject and they wanted to join the EUROCONTROL Petal trials which were booking good progress (in spite of repeated efforts on the part of some European States that wanted to kill the whole thing). The rest is history… American Airlines’ 767s were the first to be equipped with VDL Mode 2/ATN avionics and they played an essential role in ensuring that the US and Europe kept their respective digital link programs synchronized and fully interoperable.
This bold and unconventional step was typical of the spirit and attitudes of this great airline which traces its routes to the 1920s when it started to carry mail for the US government. Then in 1936 AA was the first airline to fly the Douglas DC-3, notable as the first aircraft designed to carry enough passengers to generate a profit even without revenue from mail or cargo.
But the list of innovative firsts tied to the name of American Airlines is almost endless. 1942 the catering service Sky Chefs was started to provide meals to AA passengers and in 1948 American introduced coach class service and family fares to make flying accessible to more people.
1957 saw the opening of the world’s first Stewardess College and in 1959 the first non-stop coast to coast service was introduced using the new Boeing 707.
Sabre, American’s state of the art computerized reservation system became an icon in itself first being made available to travel agents and later evolving into the core element of internet based reservation systems like Travelocity.
Super Saver fares helped American fill seats on its planes, paving the way to the business class and coach class fare division and rules we know to-day.
When the US government deregulated the airline industry in 1978, the first reaction of Robert L. Crandall, American’s volatile chairman at the time was quite forceful: “You f….ing eggheads, you are going to ruin this industry” said he but then went on to build one of the greatest airlines in the world, giving the industry the concept (and efficiency) of hub-and-spoke operations in the process.
American’s planes were always polished, not painted. This distinguished look made them lighter but also recognizable from miles away as the sun glinted on the mirror polish surface.
So how could this polish get rusted to the point of bankruptcy?
Curiously, American kept on growing even while other old-time players in the US air transport industry were taking turns in Bankruptcy Court. Even after 9/11 American managed to hold its own and when the great consolidation wave swept through the US, AA still remained an independent player.
After the Delta/Northwest and United/Continental mergers, AA slipped to third place in terms of size struggling also with an outdated fleet composed mostly of fuel-inefficient types that were becoming more and more of a problem as fuel prices continued to rise.
Practically jump-starting the Boeing 737 MAX program, American Airlines has just recently announced plans to renew its fleet, bringing in new, fuel efficient types from both Boeing and Airbus. AA employees have done their bit in the past to save the company but even the combined effort was not enough. Cash simply ran out.
What will happen now?
If Thomas W. Horton, incoming CEO replacing Gerard Arpey, is to be believed, cuts to flights will be “modest” and the frequent flyer program will not be touched. In fact, passengers may not notice much of the reorganization, however, some of them might decide to jump ship and select another carrier for their longer term travel plans. After all, who would want to entrust their hard earned cash to an airline that is trying to figure out how to survive? Stockholders will take a major hit, that is for sure. Other than that, experts believe AA will not disappear but what the future will actually bring is difficult to discern at this point in time.
The circumstances that led to the current situation have not really changed and an independent American Airlines facing down giant Delta and the new United increasingly looks like an unhealthy proposition. One can only hope that this great icon of the aviation industry will not go the way of Pan Am and TWA…