Congratulations to the American Airlines corporate communications team. They scored a big win for their boss, with airline CEO Robert Isom named CEO World‘s Best Airline CEO for 2023.
This win really does belong to the PR folks. While the publication doesn’t reveal its methodology, any reasonable ‘Best CEO’ evaluation has to look at the individual’s value add against the assets they’re working with.
In Isom’s case, having been in the role for about 15 months, it should be simple to evaluate value-add against what he inherited. In that way his contribution can be measured in some sense (even if specific wins are attributable to an executive in his employ, he’s responsible for the team). And I’m genuinely at a loss to come up with his specific value add.
The results of this survey, though, are genuinely odd.
Ed Bastian at Delta is second, and while Delta generally outperforms peers it hasn’t outperformed by as much for instance in mainline cancellations as it did prior to the pandemic. Doesn’t that suggest his performance has fallen?
Scott Kirby at United is behind both Delta and American, but Kirby arguably adds the most to his airline relative to his predecessor, who was generally liked but inexperienced in the airline business, and relative to his predecessor who was ousted in the New Jersey Bridgegate scandal involving bribing a public official.
Kirby actually changed the strategy of the airline and positioned the airline for significant growth while making innovative investments for the environment.
Southwest’s Bob Jordan rounds out the top 5 in the world. While the carrier is historically strong, and with a positive culture, he’s relatively new and presided over an epic meltdown – driven in some measure by IT that he had previously held responsibility for.
Putting the CEO of British Airways in the top 10 is bizarre, bottom 10 might be closer? Evaluating the CEO of Emirates is weird, since his major contribution is getting airline President Tim Clark not to leave during the pandemic. And how is China Southern’s CEO among the best, and ahead of Qatar Airways CEO Akbar Al Baker?
They evaluate both the CEOs of Air France and of KLM, but not Air France KLM. And both are ranked higher than the CEO of Singapore Airlines, which just made its biggest profits in airline history. Etihad’s CEO is included in the top 20 despite only being appointed in the fall?
Aeroflot’s CEO is ranked higher than Spirit’s, though the latter managed to sell his carrier for a massive premium, netting payouts to his shareholders even if the deal doesn’t go through. Is there any win greater for a CEO? While Aeroflot CEO’s has allowed his carrier to conceal malfunctions and utilize expired parts jeopardizing safety.
Meanwhile towards the bottom of the list at #47 is the CEO of Thai Airways, despite that carrier emerging from bankruptcy and returning to an operating profit
Despite the leadership being recognized by CEO World, American Airlines remains perhaps the carrier in the world with the greatest potential to be better than it is today. Isom’s American follows Delta with its pilot negotiations; an operation that performs better than when he was COO but that doesn’t lead the industry; and a frequent flyer program that’s been innovation with elite qualifications while sliding substantially in delivering consumer value for redemptions.
American is seemingly at a crossroads. Its cost structure requires a revenue premium, and new labor contracts will cost it even more. Without convincing customers to spend more for its products they won’t be profitable. While the message of CEO Isom, as he assumed the position, was for employees not to spend a dollar they don’t need to.