Quote:
Originally Posted by pipe
You need a history lesson.
TWA - killed by Icahn
EAL - killed by Lorenzo
Braniff - killed by their "out of the box" thinking, not by a failure to adjust, but by over adjusting
None of these were killed by employees or a failure to adjust. Criminal corporate raiders stealing equity is more to blame.
TWA and EAL didn't do anything significantly different than UAL or DAL, they just got robbed every time they went to the bank.
Pipe
I can't speak for EAL, but I was with TWA and was there when Icahn came along. ALPA urged his takeover to fend off Lorenzo's bid. He turned out to be as bad. But TWA had not been prepared for deregulation and had no real north-south route system. It had been bleeding red ink, especially in winter, for a decade, allowing for the Ichans and Lorenzos to feed upon.
My point is, TWA management had not been forward thinking since 1971 or so. It continually shrank it's route structure, bought Hilton Hotels through Trans World Corp, then TWC spun off the airline after milking the cash cow dry. TWA had some of the worst management in US corporate history. Robert Crandall left there to head American through deregulation and did well there in the early 80s.
FedEx has some of the best upper level management in the US. I can't say it will last forever, but if it remains forward looking and politically astute, we've got a good shot.