Hard Landing (84 page)

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Authors: Thomas Petzinger Jr.

Tags: #Business & Money, #Biography & History, #Company Profiles, #Economics, #Macroeconomics, #Engineering & Transportation, #Transportation, #Aviation, #Company Histories, #Professional & Technical

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15.
knots in their stomachs: G. Arpey 9/2/93 interview.
16.
“screen science”: Murray 9/4/93 interview.
17.
agents now selected: “November Line of Sale Analysis,” memo to R. E. Murray from S. D. Nason, American Airlines, Dec. 3, 1981.
18.
programmed to score: Robert L. Crandall, text of remarks before Aviation Subcommittee, June 23, 1983.
19.
“Trust the machine”: Murray 9/9/93 interview.
20.
One study found: “Proposal: Travel Agency Commercial Account Automation,” American Airlines, Oct. 3, 1978.
21.
“need-to-know basis”: Memo to T. G. Plaskett from R. W. Baker, American Airlines, Oct. 1, 1981.
22.
“We must achieve”:
Ibid
.
23.
Braniff flight first: Details of the moves against the Braniff flight are taken from Deposition of Richard E. Murray, U.S. Justice Department, CID No. 5087, June 22, 1983.
24.
“adjust our Sabre display”: Memo to Dick Murray from Mike Gunn, American Airlines, Aug. 22, 1980.
25.
“bulk of the displacement”: Memo to R. E. Murray from B. R. Amster, American Airlines, Jan. 15, 1982.
26.
getting greedy: Murray June 22, 1983, deposition.
27.
use some confidential … data: American’s purported theft of confidential data from Texas International was described in the Murray 9/4/93 interview and June 22, 1983, deposition.
28.
“too late now”: Hopper, in the 10/13/93 interview, did recall using travel agency sales data pertaining to Texas International’s operations but says he does not recall American using any proprietary data.
29.
3,500 travel agencies: 1981 Sabre appropriations request.
30.
“flow of passengers”:
Ibid
.
31.
“Factory of Ideas”: Serling,
Eagle
, page 460.
32.
The galling thing: Crandall, speech before the Airport Operators Council International, Mexico City, Sept. 30, 1980. Crandall expressed such views against upstarts in several other forums.
33.
“breed apart”:
Ibid
.
34.
angrily ordered: Murray 9/4/93 interview.
35.
bottom of the screen: “Motion of the Justice Department for an Extension of Time,”
In Re Advance Notice of Proposed Rulemaking—Airline Computer Reservations Systems,”
Docket 41686, Civil Aeronautics Board, Oct. 5, 1983.
36.
mortal threat: Crandall 4/23/93 interview.
37.
Among the options: The origins of American’s b-scales concept were detailed in the Crandall 4/23/93 and 9/1/93 interviews; the Carty 4/29/93 interview; the Plaskett 1/14/93 interview; the LaVoy 10/12/93 interview; the Hedges 6/13/94 interview; Crandall’s speech to the 1985 American Airlines Fall Planning Meeting, draft dated Sept. 26, 1985; “The Volatile Airline Industry,” speech by Crandall to the Economic Club of Detroit, Feb. 23, 1987; “American Air’s New Contract with Union Seen Aiding Other Carriers in Labor Talks,” by Dean Rotbart,
WSJ
, Mar. 7, 1983; and D. Reed,
American Eagle
.
38.
“If we can’t create”: Crandall 9/1/93 interview.
39.
winners and losers: Carty 4/29/93 interview.
40.
scabs … standing by: “What Labor Gave American Airlines,”
BW
, Mar. 21, 1983.
41.
booing and hissing crowd: “Competitive Anger,” by Suzanne Loeffelholz,
Financial World
, Jan. 10, 1989.
42.
huge proportion of the pilots: LaVoy 10/12/93 interview.
43.
intimidate the rabble-rousers: Plaskett 1/14/93 and 4/21/93 interviews.
44.
“emotional, visible level”: Plaskett 1/14/93 interview.
45.
every secretary in … headquarters: D. Reed,
American Eagle
, page 203.
46.
Finland in the shadow: “Sky King,” by Sally Giddens,
D
, November 1989.
47.
“I don’t want to hear”: Crandall 9/1/93 interview.
48.
under the bright lights: Crandall, script for videotaped address to new employees, June 26, 1986.
49.
the year 217 A.D.: Griffin and Ebert,
Business
, page 229.
50.
the regulated past: Quoted in “How American Mastered Deregulation,” by Colin Leinster,
Fortune
, June 11, 1984.
51.
Acker stood out: The account of the careers and turnaround moves of Acker, Wells, and Lawrence is based on the Acker 1/7/93 and 6/3/93 interviews; Nance,
Splash of Colors;
Brown,
Ling;
Bender,
At the Top;
“On Loveable Madison Avenue With Mary, Dick, and Stew,” by Philip Siekman,
Fortune
, April 1966; and “As the World Turns on Madison Avenue,” by Carol J. Loomis,
Fortune
, Dec. 1968.
52.
$40,000 in hundred-dollar bills: The political finance activities of Acker and Lawrence are detailed in several records of the Watergate Special Prosecution Force released by the National Archives under the Freedom of Information Act, including “Prosecutive Memorandum Re Braniff Airways,” from Thomas F. McBride and Roger M. Whitten to Henry S. Ruth, Jr., Oct. 26, 1973, and “Braniff Airways, Inc.,” Federal Bureau of Investigation File N. 56-4756, Nov. 27, 1973.
53.
called before a grand jury: Acker 6/3/93 interview.
54.
yearned to escape:
Ibid
.
55.
protect Lawrence: “The Great Airline War,” by James Fallows,
Texas Monthly
, Dec. 1975.
56.
without its ballast: This assertion, though evident from the record, is persuasively argued in Nance,
Splash
, pages 84-85.
57.
olive trees:
Ibid.
, page 140.
58.
flight attendants … lost track:
Ibid.
, page 122.
59.
rubbing his hands: Crandall 4/23/93 interview.
60.
issue was delicate: Olsen 9/2/93 interview.
61.
as a baggage handler:
Ibid
.
62.
“de-peak DFW?”: The description of the DFW hubbing project is based mainly on the Plaskett 4/21/93 interview, on the Olsen 9/2/93 and 6/10/94 interviews, and on “Should We De-Peak DFW?” presentation by Schedules Department, American Airlines, Oct. 20, 1980. An extensive discussion of the project also appears in Reed,
American Eagle
.
63.
total of $13,140: “Should We De-Peak DFW?” Oct. 20, 1980.
64.
“show this to Mr. Crandall”: Olsen 9/2/93 interview.
65.
a third party … Delta: Crandall 4/23/93 interview; “Delta Air’s Aggressive Growth Contrasts with Large Losses for Ailing Competitors,” by Janet Guyon,
WSJ
, Sept. 8, 1980.
66.
It can’t be done: Kaldahl 4/27/93 interview. Kaldahl himself was a vital player in the hub buildup.
67.
40 percent of its business: These are standard industry figures, cited in
Winds of Change
, Transportation Research Board, 1991.
68.
honorary Texas Ranger: Serling,
Eagle
, page 99.
69.
“Do we even know”: Plaskett 4/21/93 interview. The birth of American’s frequent-flier program was also told in the Gunn 4/28/93 interview; the Crandall 4/23/93 interview; Serling,
Eagle;
D. Reed,
American Eagle;
“Targeting for AAdvantage,” speech by Plaskett to Business and Professional Advertising Association, Anatole Hotel, Dallas, Sept. 26, 1983; and “American Rediscovers Itself,”
BW
, Aug. 23, 1982.
70.
about 150,000: Gunn 4/28/93 interview.
71.
“What is that?”: Plaskett 4/21/94 interview.
72.
passing out scrip: “For Free Plane Trip to Mexico, Just Fly to St. Louis Three Times,”
WSJ
, Sept. 26, 1979.
73.
punch cards: “Western Air Hopes Carwash Rebate Plan Can Help It Clean Up,”
WSJ
, June 13, 1980.
74.
filled … with dread: Gunn 4/28/93 interview.
75.
“on individual greed”: Plaskett 4/21/93 interview.
76.
like the Secret Play: Gunn 4/28/93 interview.
77.
Runway 13L: The same ribbon of concrete was known as 31R when used in the other direction.
78.
“what have I done?”: Plaskett 4/21/93 interview.
79.
Crandall thrust himself: The account of Crandall’s thoughts and actions in the Runway 13L fracas, including his comments against Southwest, are based partly on a “Letter from R. L. Crandall to all American Airlines Employees in the Dallas-Fort Worth Area,” June 24, 1981, and on “A Conversation with President Robert L. Crandall,” KNBN-TV, Dallas, June 26, 1981.
80.
Kelleher … hosted a meeting: “A Boy and His Airline,” by Jan Jarobe,
Texas Monthly
, Apr. 1989.
81.
among the 10 largest:
Ibid
.
82.
demanded hearings: Kelleher 10/14/93 interview.
83.
old pal … Bob Packwood: Kelleher 10/13/93 interview; Barrett 4/26/93 interview.
84.
“pain in the ass”: Quoted in “Is Herb Kelleher America’s Best CEO?” by Kenneth Labich,
Fortune
, May 2, 1994.
85.
did not … bother Kelleher: Kelleher 10/14/93 interview.
86.
dinner and drinks: Kelleher 6/14/94 interview.
87.
a little too uppity: The firing of Lamar Muse was described in the Kelleher 10/14/93 interview; the Barrett 4/26/93 interview; “Muse Air’s M. Lamar Muse Returns, Ready for Fight to Strengthen Troubled Carrier,” by Laurie P. Cohen,
WSJ
, Dec. 20, 1984; “Muse Air Founder Competes Against His Own Creation with an Aura of Class,” by Danna K. Henderson,
Air Transport World
, Oct. 1981; and Jarobe,
Texas Monthly
, Apr. 1989.
88.
double … the company overnight: Barrett 4/26/93 interview.
89.
“king of Siam”:
Southwest Airlines, Twenty Years of Luv
video.
90.
Putnam learned to fly: Putnam 10/13/93 interview.
91.
wanted to run something:
Ibid
.
92.
his mission: Putnam described his moves at Southwest in the 10/13/93 interview and in his memoirs,
Winds of Turbulence, passim
.
93.
three-page report: Putnam,
Winds of Turbulence
, page 66.
94.
“unique, feminized image”: Quoted in “Southwest Air Told to Make Its Hiring—Like Love—Blind,”
WSJ
, June 15, 1981.
95.
became an issue: “Why Herb Kelleher Gets So Much Respect from Labor,”
BW
, Sept. 24, 1984.
96.
Olympic scorecards: Southwest Airlines,
Twenty Years of Luv
.
97.
“felt good”: Putnam,
Winds of Turbulence
, page 119.
98.
“No one expects Braniff”: “Rough Weather: Braniff’s Cash Shortage Is Becoming Desperate, Leaving Lasting Scars,” by William M. Carley and Roger Thurow,
WSJ
, July 30, 1980.
99.
Putnam … walked through the doors: Putnam 10/13/93 interview.
100.
10 days’ worth of cash: The desperation of Braniff’s finances, and Putnam’s turnaround moves, were described in the Putnam 10/13/93 interview; Nance,
Splash;
D. Reed,
American Eagle;
and an interview with Putnam broadcast on the
MacNeil/Lehrer Newshour
.
101.
flew into a rage: Crandall’s rage was evident in his public comments and in comments made by his subordinates.
102.
$7 million: Notice from Albert V. Casey and Robert L. Crandall to All Employees, American Airlines, Nov. 16, 1981.
103.
away from Braniff: Murray June 22, 1983, deposition.
104.
“make them go away”: Plaskett 4/21/93 interview.
105.
“not good-spirited”:
Ibid
.
106.
strange things: The allegations that American committed dirty tricks in the fight against Braniff received widespread attention and investigation. Many of these allegations were undoubtedly enlarged in the retelling; a number seem patently impossible. Those enumerated here were repeated by credible accusers and make sense within the context of the competitive battle. Many of the principals were interviewed about these events; worthwhile accounts also appear in Nance,
Splash;
D. Reed,
American Eagle;
and “American Airlines Gets a ‘Bad Guy’ Image in Dallas from its Harsh Attacks on Braniff,” by Brenton R. Schlender,
WSJ
, Mar. 12, 1982.

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