Any publicity is good publicity, right? Perhaps not if every time your name is mentioned its turning you into a dead man walking. That certainly feels like what is happening to Robert Isom, the embattled chief executive of American Airlines.
Ever since the Fort Worth-based carrier announced its disappointing annual financial results at the end of last month, whenever Isom’s name has been mentioned its been about how leadership change at the very top is required to right the stricken ship that is American Airlines.
The pressure feels like it’s beginning to build to bursting point, and rumors abound that Isom’s departure is no longer a case of ‘if’ but ‘when.’
There are, of course, very good reasons for this. As much as Isom might prefer to pin the blame on the likes of the ex-chief commercial officer, Vasu Raja, when it comes to American’s failed strategies over the last few years, the buck really does stop at Isom.
American Airlines has, at least, realized that it’s lost too much ground to its arch-rivals Delta and United. It knows that to compete on the same level as these two carriers, it has to drop its low-cost mindset and become more premium.
There are green shoots of improvement in some areas, but is Isom really the man to turn this oil tanker around?
Flight attendants at the carrier certainly don’t think so. During American’s recent operational meltdown during Winter Storm Fern, the Association of Professional Flight Attendants (APFA) made it clear they had lost all confidence in Isom and the rest of his management committee, demanding new leadership to take the reins.
Pilots are also considering a vote of no confidence in Isom and the rest of American’s leadership. The Allied Pilots Association (APA) is meeting this week, and after being inundated with requests, the union could put a formal vote to its members.
Then there are the mounting rumors. Some suggest that the airline’s board has already made a decision in the absence of Isom to have him removed towards the end of this month.
There are also reports that the board has brought in external management consultants from Korn Ferry to start searching for a new CEO. Of course, this is an unsubstantiated rumor, but it just goes to show how much speculation there is over Isom’s future.
American Airlines’ shares rose slightly to $14.72 on Wednesday, but are still way down from the $17.66 that analysts expected.
