As United Airlines seals CEO succession plan, eyes turn to American

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As United Airlines seals CEO succession plan, eyes turn to American
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With United Airlines Holdings Inc unveiling on Thursday plans for industry veter...

FILE PHOTO: United Airlines president Scott Kirby speaks at O'Hare International Airport in Chicago, Illinois, U.S., June 5, 2019. REUTERS/Kamil Krzaczynski/File Photo

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.

“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. “They are a more reliable airline this quarter than last, but there’s a lag time in perception, and in a way they’re in a vicious cycle, without the finances to think long-term,” Kaplan said.

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