A couple of weeks ago I revealed exclusively that American Airlines CEO Robert Isom had pivoted to begin talking about a premium focus in the airline’s strategy. In employee remarks following the airline’s fourth quarter earnings call, Isom talked about attracting customers willing to pay more for better services.
He said that the airline is going to have a “rededication and a renewal to focus on the customer experience.” And he talked about this as “the next order of business, we’re going to organize around this.” And says “you’re going to hear some things very soon.” The start of this appears to be today’s news.
American Airlines has created a new ‘Customer Experience organization’ to “drive the strategy and…implementation of the initiatives that define our customers’ journeys with American” and “advocate on behalf of customers.” And they’ve appointed Heather Garboden as Chief Customer Officer to run it. (Executive Vice President and Vice Chairman Steve Johnson continues as head of the airline’s commercial group.)
Senior Vice President of Inflight and Premium Services Brady Byrnes and Vice President of Customer Experience Kim Cisek will report up to Garboden. You can read a copy of the memo from Isom to American Airlines employees here.
American Airlines Admirals Club E Concourse, DCA Airport
Garboden came to American Airlines with the carrier’s takeover by US Airways, where she worked in Financial Planning and Analysis. As Vice President of FP&A at American she takes credit for leading “the One American cost efficiency program, laying out a multi-year plan to achieve $1 billion in annual cost efficiencies, achieving $300 million in savings in the first year of the program.” Most recently she’s served as Senior Vice President of American Eagle and Cargo and she will retain oversight of cargo.
- On the one hand, American Airlines needs a Chief Customer Officer. There’s been no Chief Commercial Officer since Vasu Raja was exited last year. The last Chief Customer Officer mocked seat back entertainment at United as ‘prettying up old planes’.
- On the other hand, this is not the background you’d expect from someone super customer-focused rather than cost and spreadsheet-focused.
American Airlines Is About To Remove The Last Seat Back Screens From Domestic Aircraft
Isom has previously spoken about premium investments only in terms of planned Boeing 787-9 and Airbus A321XLR aircraft with large business and premium economy cabins, finally planning to open a Philadelphia Flagsihp lounge, and investing in more gate space at DFW airport. So it’s not clear how the airline’s strategy, messaging, or product will change in practice.
Credit: American Airlines
In what may amount to a triumph of hope over experience, I would love to see nothing more than a “rededication and a renewal to focus on the customer experience” at American Airlines.
I haven’t had Premium customer service since I flew Piedmont. That was a great airline!
“I’ll take Recognizing Unhappy Customers Too Late for $1,000 Ken”
Spoiler alert all the answers are “Who is American Airlines”
Says the airline that is eliminating long-haul and transcon first class. Says the airline that did not restore cabin staffing post-COVID. Says the airline that seemingly serves USDA Select beef. Says the airline that intends to replace Concierge Key phone agents with AI voice-bots. Says the airline that didn’t feel a need to keep a business relationship team.
PS – Says the airline with the airport lounges it has. In particular, compare the JFK Chelsea Lounge to the JFK Delta One Lounge. As Ben over at OMAAT wrote, AA lounges seem like school cafeterias in comparison. For BA travelers, what a step down from the T7 Concorde Room . . . which was likely driven by AA’s “don’t spend a dollar” mindset.
It costs little to keep an existing customer. It costs much to win back a departed customer.
Says a former multi-year CK.