Last week, I took meetings in New York with four sell-side analysts who cover American Airlines as well as journalists from Bloomberg News. Despite the busy earnings season, these analysts were interested to hear what the pilots of American have to say, and they independently brought up two recurrent themes in our meetings – first, a collective agreement that American is dramatically underperforming its financial potential, and, second, that there is little faith among those who follow our airline and our industry for a living that our management team’s current plan will be able to fully close the financial gap between American and its global network peers.

APA was welcomed to these conversations with these industry followers because we are viewed as both credible and professional in how we have chosen to address our concerns about the trajectory of our airline. We have been consistent in our messaging to all audiences, both inside and outside Skyview. Our message has focused on the same three themes for far too long:

First, management’s lack of a long-term strategy and its short-term actions are causing our airline to fail to reach the full potential of its assets, network, and people.

Second, the current state of the airline is unacceptable. We have seen little in terms of vision, culture change, and operational improvements to believe that meaningful positive progress can be achieved in an acceptable timeframe.

And finally, APA is open to any path forward that allows us to work at an airline that values our leadership skills and professionalism, and creates an airline that not only competes but leads the industry and reinstates the pride of working for American Airlines, making our airline the first choice for passengers across the globe.

So why did I choose to deliver this message now?

Recently, Bloomberg News broke a story about United CEO Scott Kirby’s interest in a merger with our airline. Since that day, the questions and speculation have been abundant: Was Mr. Kirby seriously considering a merger with American? Could such a merger survive regulatory scrutiny? How would Mr. Kirby envision bringing our two airlines together?

Four days after the Bloomberg story broke, the AA Corporate Communications and Investor Relations team put out a statement. The proclamation was not from Chairman Greg Smith, CEO Robert Isom, or Chief Strategy Officer Steve Johnson, but it declared that American was not interested in any potential merger with United Airlines.

Last Monday, after American had publicly rebuffed his merger idea, Mr. Kirby issued a message to his employees and the public that I encourage you to read. After acknowledging American management’s swift rejection of any merger with United, he proceeded to describe why he believes such a merger would be transformative for both airlines and how it could withstand regulatory scrutiny. He articulated a bold vision for the future of air travel that could be transformative for our passengers, the communities we serve, and, foremost, the very people at American that our C-suite has chosen to disrespect: you.

For now, it appears that Mr. Kirby’s vision will remain just an aspiration. However, while he may believe that American’s management has closed the door on him, the boldness of his ideas further underscores how far American has fallen behind our competitors, both domestic and international.

As I repeatedly heard in New York last week, American continues to fail to reach its full potential as an airline and a business – or, worse, perhaps we have reached our potential, and this is as good as it gets. Either option is unacceptable for our pilots, and it’s clear that it will take bold ideas and real leadership to restore American to a true place of prominence among global airlines. 

What’s next?

Of late, AA management has been reaching out to APA more, but the main purpose is to inquire if anyone is trying to “get APA pilots on board with an alternative plan” for the airline. That answer is “Yes.”

My phone rings every day with calls from people who are interested in hearing the thoughts and opinions of American’s pilots. However, the calls are not coming from the American Board of Directors or C-suite.

It is my hope that all strategic alternatives that could propel our airline forward will receive fulsome reviews from American senior management versus a quick defensive dismissal.

We will continue to be a credible resource for anyone who is interested in discussing ideas and hearing the thoughts and opinions of the American pilots – even while the AA Board remains uninterested in engaging with us – and we welcome those discussions.

Your professionalism and engagement over the last few months have given APA the influence to speak on your behalf. And based on everything I am hearing, the next few weeks may very well require APA to make some important decisions about what we want the future of American to look like. I look forward to making you a part of that conversation.

In Unity,

FO Nick Silva
APA President