As United seals CEO succession plan, eyes turn to American

With United unveiling Thursday plans for industry veteran Scott Kirby to take the helm as CEO next year, investors are turning to succession plans at another carrier: American Airlines Group. American has been struggling with dismal stock and revenue performance and strained labour relations, putting pressure on top management to turn things around. Ironically, Kirby landed at United from American in 2016 after the board passed over him as a potential leader in what was described as succession planning for the longer-term. But given diverging performance at the two airlines since Kirby’s departure - with United’s shares doubling and American’s losing about 25% - industry insiders and analysts have questioned the leadership of American Chief Executive Doug Parker and heir apparent Robert Isom, and had speculated about Kirby’s possible return. “American is now without a future pilot,” said Eric Schiffer, chairman of Reputation Management Consultants. When American ousted Kirby, it mentioned the “marketability” of its executives and elevated Isom, then chief operating officer, to the role of president. “When American picked Isom his strength was on the operational side. With the airline lagging not only in profitability but also in operations, you can understand why people question whether that succession plan still makes sense,” aviation analyst Seth Kaplan said. American said in an e-mailed statement it has an ongoing succession planning process, which the company’s board of directors discusses regularly.<br/>