Monthly Archives

Monthly Archives for June 2015.

A Hotelier’s Perspective on Why Airline Customer Service is So Bad

Starwood CEO Adam Aron had an interesting story to tell when I interviewed him on stage in Atlanta. He began his career at Pan Am, where he eventually launched their first frequent flyer program. When he started at the airline he was taken into a dark room and put in front of a screen where he was shown a two hour documentary on the runway collision of two Boeing 747s at Tenerife in 1977, known as the deadliest accident in aviation history. A KLM flight tried to take off while Pan Am’s 747 was on the runway. Everyone onboard the KLM 747 was killed, and 335 people onboard the Pan Am aircraft lost their lives. As the video ended his colleague walked into the room, and told him that every decision at the airline matters.…

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Is a Rough Ride Ahead for American’s Stock, as Merrill Lynch Downgrades?

Jun 04 2015

Merrill Lynch has downgraded American Airlines stock to a ‘neutral’ rating just as airline CEO Doug Parker elected to take all his compensation in stock.

Remember that neutral means sell (and sell means build a shelter and accumulate canned goods and bullets). Historically an investment firm wouldn’t rate a sell (or likely even neutral, since ‘buy’ is considered neutral) if they hoped to get business from that firm in the future.

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