A recent defense of American Airlines CEO Robert Isom, penned by Yale School of Management Senior Associate Dean Jeffrey Sonnenfeld, has drawn criticism for factual errors and questionable claims. The article attempts to portray Isom as a misunderstood leader, despite the airline’s lagging financial performance compared to competitors like Delta and United. The core argument relies on selective data and ignores critical context, raising questions about the validity of the assessment.
Profitability and Operational Issues
Sonnenfeld acknowledges that American Airlines hasn’t matched the profitability of its rivals—Delta generated $5 billion in pure profits while United earned $3.4 billion—but insists American didn’t lose money last year. This claim sidesteps the fact that American’s profits declined by 87% year-over-year, and relies on a comparison to United that deliberately overlooks the latter’s cost savings from labor agreements. The article downplays American’s operational struggles, including frequent flight cancellations and mishandling of passenger belongings, attributing them to external factors like Winter Storm Fern instead of systemic issues.
Labor Relations and Strategic Missteps
The piece touts American’s high rate of unionized employees (87%), suggesting Isom prioritizes fair labor practices. However, this overlooks the history of contentious negotiations, including a past slowdown by mechanics and strategic exploitation of union dynamics, where American benefited from another union’s strike to secure a favorable contract. The narrative fails to address Isom’s strategic errors, such as the decision to retire key aircraft like Airbus A330s and Boeing 767s, which contributed to fleet shortages and operational disruptions.
Innovation and Partnerships
Sonnenfeld highlights innovations like self-rebooking for disrupted flights and biometric screening as proof of Isom’s leadership. But these advancements are either incremental or already implemented by competitors. The article also misrepresents American’s Citi credit card partnership, claiming it will generate over $10 billion annually when the actual projection includes revenue from all partners, not just Citi. The partnership’s current performance lags behind Delta’s American Express deal, and Isom’s claims of success are inflated.
Fleet Investments and Sustainability
The defense emphasizes Isom’s order of 260 new aircraft, but fails to acknowledge that many of these orders were initiated before his tenure. The lack of widebody aircraft orders puts American behind United and Delta, and the reliance on delayed deliveries from Boeing and Airbus exacerbates operational challenges. The promotion of hydrogen-electric engine orders is also misleading, as similar commitments were made by competitors earlier, and actual deliveries remain uncertain.
Conclusion
The analysis reveals a pattern of selective data presentation and misattribution of accomplishments to Robert Isom. The article’s central thesis—that Isom is an underappreciated leader—falls apart under scrutiny, as it ignores critical shortcomings in financial performance, operational efficiency, and strategic decision-making. The defense ultimately serves as a reminder that even academic endorsements can be skewed by bias or incomplete information.
