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Hard Landing

Page 62

by Thomas Petzinger, Jr.


  11. “turn the pages”: Baker 6/10/94 interview.

  12. in his pajamas: Serling, Eagle, page 456.

  13. cup after cup: “Bob Crandall Soars by Flying Solo,” by Kenneth Labich, Fortune, Sept. 29, 1986.

  14. “mankind’s biggest bladder”: Quoted in “America’s Toughest Bosses,” by Peter Nulty, Fortune, Feb. 27, 1989.

  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, a
re 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.

  107. whole new route system: Putnam expressed his views in the Feb. 1, 1982, conversation with Crandall.

  108. “American only gives you”: The spot appears in the Public Broadcasting System production Tailspin, Jan. 1982.

  109. Crandall … saw the ad: D. Reed, American Eagle, page 189.

  110. “raise your drink prices”: Putnam 10/13/93 interview. According to former government lawyers, Putnam also disclosed the conversation to the U.S. Justice Department. In a May 22, 1995, letter to the author, Crandall called Putnam’s recollections “flawed and slanted,” but otherwise declined comment. Anne McNamara, the general counsel of American, said she was unaware of an earlier conversation ever occurring with Howard Putnam.

  111. Ferris too was dismayed: Ferris, in the 6/7/94 interview, recalled Putnam’s informing him of the conversation with Crandall but did not recall his response.

  112. “dumb as hell”: This account of the conversation is based on a transcript included in United States v. American Airlines Inc. and Robert L. Crandall, U.S. District Court, Northern District of Texas, CA383-0325D, Feb. 23, 1983. Stammers appearing in the transcript have been removed by the author. Crandall has long declined to discuss this conversation with any reporter.

  113. “need your support”: PBS production Tailspin.

  114. sneered at by salesclerks: The hazing of American employees was described in the Becker 9/3/93 interview, the Plaskett 8/31/93 interview, the Gunn 9/1/93 interview, the Crandall 9/1/93 interview, and the Kaldahl 4/27/93 interview.

  115. children were harassed: Kaldahl 4/27/93 interview.

  116. local media war: Becker 9/3/93 interview.

  117. casually remarked: Schlender, WSJ, Mar. 12, 1982.

  118. Sunday night at Billy Bob’s: Appears as a scene in the PBS production Tailspin.

  119. “parking ticket”: Quoted in BW, Aug. 23, 1982.

  120. “We’re getting off”: Crandall 9/1/93 interview.

  121. dabbing his eyes: PBS production Tailspin.

  122. American was soon carrying: BW, Aug. 23, 1982.

  123. a system restart: Murray 9/4/93 interview.

  124. remembered the incident: Ibid.

  Chapter 7: Workingman’s Blues

  1. “command approach”: Magurno 3/11/94 interview.

  2. “mission control”: “Borman to the Rescue,” by James Conaway, New York Times Magazine, May 9, 1976.

  3. came into the world: Eastern’s history is told in “History of Eastern Air Lines,” an internally produced article dated January 1986; Davies, Airlines of the U.S. Since 1914; Rickenbacker, Rickenbacker, and Serling, From the Captain to the Colonel.

  4. stopped at nothing: Rickenbacker, Rickenbacker, pages 190-95.

  5. Laurance became Rickenbacker’s principal: Collier and Horowitz, The Rockefellers, pages 217-18.

  6. “bums on seats”: Quoted in Sampson, Empires of the Sky, page 19.

  7. a no-reservation Merry-Go-Round: The birth of the Eastern shuttle is detailed in Johnson, The Abominable Airlines, pages 84-86.

  8. “social calls”: Ibid., page 85.

  9. “the greatest advance”: Quoted in ibid., page 86.

  10. celebrity-spotting venue: “The Northeast Corridor After Eastern” by Barbara Sturken Peterson, Frequent Flier, May 1993.

  11. hopelessly late: “Another Tailspin at Eastern,” by Neil A. Martin, Dun’s, Nov. 1973; Borman, Countdown, page 270.

  12. W.H.E.A.L.: Serling, From the Captain, page 277.

  13. “The Great Stingy Fleet”: “Floyd Hall’s Problems at Eastern,” BW, Aug. 18, 1973.

  14. drowning himself in martinis: Serling, From the Captain, page 331.

  15. nipping quite a bit: Ibid., pages 383-84.

  16. “scientific management”: BW, Aug. 18, 1973.

  17. Rosenthal china: Serling, From the Captain, page 406.

  18. born in Gary: The facts of Borman’s early life and military career are based principally on his memoir, Countdown. Borman is also profiled in “Lost in Space,” by Rowland Stiteler, Florida, Nov. 1, 1987, and “Frank Borman: Is He Really Captain America?’ ” by Nancy Webb Hatton, Miami Herald, July 31, 1977.

  19. happiest moments: Conaway, New York Times Magazine, May 9, 1976.

  20. sponsorship of a judge: “Frank Borman,” by W. David Lewis, from Encyclopedia of American Business History and Biography.

  21. threatened to kill him: Borman, Co
untdown, page 29.

  22. an alcoholic: Bryan 5/13/93 interview. Most of the details of Bryan’s early life and career are based on this interview.

  23. sleeping on an army cot: “Charlie Bryan Has Ideas—And Lorenzo Is Listening,” by Pete Engardio and Aaron Bernstein, BW, Nov. 21, 1988.

  24. “deserted island”: Bryan 5/13/93 interview.

  25. engraved invitation: Rickenbacker, Rickenbacker, page 207.

  26. seminal event: Bryan 5/13/93 interview.

  27. Charles Leader: Bryan in the 5/13/93 interview said he listed his surname as “Leader” because at the moment the phone company asked him to designate a name, he was holding a record album cover identifying the recording company as a “leader” in high fidelity.

  28. extemporaneous: Ibid.

  29. overtime records: Ibid.

  30. “awesome experience”: Quoted in “Paradise Tossed,” by Alex Gibney, Washington Monthly, June 1986.

  31. I billion people: Lewis, Encyclopedia of American Business History and Biography.

  32. dousing her fears: Borman, Countdown, page 295.

  33. “didn’t blow it”: Quoted in Serling, From the Captain, page 468.

  34. “below average” rating: Borman, Countdown, page 276.

  35. two warring camps: The management strife at Eastern was described in the Borman 1/29/94 interview, the Kaldahl 4/27/93 interview, and the following publications, among others: Borman, Countdown; Serling, From the Captain; and “Can Frank Borman Make Eastern Take Off?” BW, Dec. 22, 1975.

  36. Borman was shocked: Borman 1/29/94 interview.

  37. “impossible to manage”: Quoted in Borman, Countdown, page 280.

  38. “like the Captain”: Quoted in Serling, From the Captain, page 480.

  39. nothing less than a spy: Borman, Countdown, page 318; Serling, From the Captain, page 467.

  40. pull the plug: Deposition of Frank Borman, In the Matter of: Preliminary Investigation of Texas Air and Its Subsidiaries, U.S. Department of Transportation, Docket No. 45581, Apr. 26, 1988.

  41. “the only man”: Quoted in Stiteler, Florida, Nov. 1, 1987.

  42. “I’ll do my best”: Quoted in Serling, From the Captain, page 472.

  43. “a certain romanticism”: Memo to senior staff from Frank Borman, Eastern Air Lines, Nov. 5, 1976.

 

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