Robert Crandall
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Robert Lloyd "Bob" Crandall (born December 6, 1935) is the former president and chairman of American Airlines. Called an industry legend by airline industry observers, Crandall has been the subject of several books and is a member of the Hall of Honor of the Conrad Hilton college. He received an MBA from the Wharton School of the University of Pennsylvania, and an undergraduate degree from the University of Rhode Island.[1] Robert Crandall was raised in Rhode Island.[citation needed]
In 1966, he joined TWA, where he worked for six years. In 1972, he left to become a senior financial officer at Bloomingdale's Department Stores, but he returned to the airline industry in 1973, as senior financial vice president of American.[1]
Before the passing of the 1978 Airline Deregulation Act, Crandall was one of the act's loudest opponents. In 1982, he had a famous conversation with Braniff CEO Howard D. Putnam, in which he told Putnam that if Braniff raised their prices, American would too. Crandall has publicly expressed embarrassment over that conversation. 1982 was also the year that Crandall became American's president. In 1985, Crandall succeeded Albert Casey as American's chairman and CEO.[citation needed]
During the latter period of Crandall's tenure as CEO, investor concern over airline bankruptcies and falling stock prices caused Crandall to remind his employees about the dangers of investing in airline stocks. Known for his candor, Crandall later told an interviewer, "I've never invested in any airline. I'm an airline manager. I don't invest in airlines. And I always said to the employees of American, 'This is not an appropriate investment. It's a great place to work and it's a great company that does important work. But airlines are not an investment.'" Crandall noted that since the airline deregulation of the 1970s, some 150 airlines had gone out of business. "A lot of people came into the airline business. Most of them promptly exited, minus their money," he said.[2][3]
In 1997, Crandall received the Horatio Alger award for disadvantaged people who have reached important status in their fields. In 1998, he retired from American and he went on to work as director of many other companies, including American Express. He is the 2001 recipient of the Tony Jannus Award for outstanding leadership in the commercial aviation industry.[4]
Crandall is credited with creating the first frequent flyer programs in the airline industry, the AAdvantage program, as well as pioneering modern reservations systems through the creation of Sabre. He is also credited with pioneering yield management. Currently he is serving as CEO of POGO, a company that will offer air service using very light jets in the United States. Crandall also serves as a senior adviser and sits on the board of AirCell, an in-flight telephony company which won the larger of two licenses for air-ground data service that will provide in-flight broadband and, eventually, in-flight cellular telephone service.[citation needed]
[edit] References
- ^ a b "Robert Crandall (biography)". University of Houston. http://www.hrm.uh.edu/cnhc/ShowContent.asp?c=8714. Retrieved on 2008-04-01.
- ^ Greenberg, Peter, Inside American Airlines: A Week in the Life, CNBC Documentary Feature, October 18, 2006
- ^ Roeder, David, Stock Seer Sees No Reason Dow Won't Continue Steady Growth, sub. Fear of Flying, Chicago Sun-Times, October 22, 2006
- ^ "Tony Jannus Award past recipients". Tony Jannus Society. http://www.tonyjannusaward.com/legacy.html. Retrieved on 2008-04-01.
