American Airlines CEO acknowledges rough few weeks

NEW YORK — American Airlines’ CEO acknowledges that passengers have had a rough few weeks on the airline but says the carrier is working through its issues.

“The operational performance is improving,” CEO Tom Horton said in an interview with The Associated Press on Monday. “We’ll get past this just like other airlines before us have.”

The airline, which has been in bankruptcy protection since November, saw its on-time performance drop to 59 percent in September, according to Flightstats.com. It that same period Delta, Southwest and U.S. Airways were all above 85 percent. The drop is attributed to pilots writing up extra maintenance requests as part of an unsanctioned job action.

Delays and cancelations snowballed after a federal bankruptcy judge ruled against the airline’s pilots, allowing management to impose new pay and work rules. Pilots started filing more maintenance complaints, sometimes minutes before the scheduled departure time, and flew circuitous routes.

The airline has cut flights, and added reserve crews and extra planes to cover any last-minute delays. Now that the two sides are back at the bargaining table, Horton says customers should notice more on-time flights.

“Unfortunately for a couple of weeks there, it was very difficult on our customers,” he said. He said the company’s operating performance is “not yet back to the level we think our customers deserve and expect from American but it has improved significantly since the period right after the contract rejection.”

Horton would not discuss a potential merger with US Airways Group Inc. The two companies announced on Aug. 31 that they had signed non-disclosure agreements. In a separate interview Monday, the CEO of British Airways said his company was prepared to buy a minority stake in American’s parent, AMR Corp., if Horton asked.

“If American asks for it, I think that would be a big step,” said Willie Walsh, CEO of International Consolidated Airlines Group, the parent of British Airways and Iberia.

He noted that American doesn’t necessarily need the money but his company would invest to help cement their existing partnership.

“We think an investment in a restructured American will be a good investment. That’s why we said we’d be very happy to look at it if the opportunity presented itself and if Tom welcomed it,” Walsh said.

Foreign investors are prohibited from owning more than 25 percent of a U.S. airline.

“We’ve never put a figure on it but I can’t see anything above 10 percent to be honest with you,” Walsh said. “But again I’m speculating because we haven’t done any formal analysis. But we’re not looking for a significant minority stake.”

———

Scott Mayerowitz can be reached at http://twitter.com/GlobeTrotScott.

More in Herald Business Journal

Snohomish County’s campaign to land the 797 takes off

Executive Dave Somers announced the formation of a task force to urge Boeing to build the plane here.

A decade after the recession, pain and fear linger

No matter how good things are now, it’s impossible to forget how the collapse affected people.

Panel: Motorcycle industry in deep trouble and needs help

They have failed to increase sales by making new riders out of women, minorities and millennials.

Costco rises as results display big-box retailer’s resiliency

Their model has worked in the face of heightened competition from online, brick-and-mortar peers.

For modern women, 98-year-old rejection letters still sting

In a stark new video, female Boeing engineers break the silence about past inopportunity.

Tax reform needs the public’s input on spending priorities

The GOP tax plan is a good idea, but the next step should give us a voice on how taxes are spent.

Commentary: GM, Boeing fight a war of words over Mars

Boeing is strongly signaling how crucial deep-space exploration is to its future.

Under cloud of ethics probes, Airbus CEO Enders to step down

He leaves in 2019 after 14 years. Meanwhile, aircraft division CEO Fabrice Bregier leaves in February.

$4.99 sandwich promotion irks some Subway business owners

Management insists that “most franchisees support the promotion.”

Most Read