Airline - Wikipedia
The first airline was the German airship company DELAG, founded on November 16, 1909. ... The four oldest non-airship airlines that still exist are the ...
Robert Crandall
Thus the last 50 years of the airline industry have varied from reasonably profitable, to devastatingly depressed. As the first major market to deregulate the industry in 1978, U.S. airlines have experienced more turbulence than almost any other country or region. In fact, no U.S. legacy carrier survived bankruptcy-free. Among the outspoken critics of deregulation, former CEO of American Airlines, <anchor>Robert Crandall</anchor> has publicly stated: "Chapter 11 bankruptcy protection filing shows airline industry deregulation was a mistake."[53]
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- [1Early life](#Early_life)
- [2Airline career](#Airline_career)Toggle Airline career subsection  - [2.1Criticism of deregulation](#Criticism_of_deregulation)
  - [2.2Reputation for cost-cutting](#Reputation_for_cost-cutting)
- [3Honors and awards](#Honors_and_awards)
- [4References](#References)
- [5External links](#External_links)

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# Robert Crandall

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From Wikipedia, the free encyclopedia

American businessman (born 1935)

Robert Crandall

[![](//upload.wikimedia.org/wikipedia/commons/thumb/c/c9/Robert_L._Crandall_01.png/220px-Robert_L._Crandall_01.png)](/wiki/File:Robert_L._Crandall_01.png)

Robert Crandall in 2015

Born (1935-12-06) December 6, 1935 (age 88)

[Westerly, Rhode Island](/wiki/Westerly,_Rhode_Island "Westerly, Rhode Island"), U.S.

Alma mater[University of Rhode Island](/wiki/University_of_Rhode_Island "University of Rhode Island")

[University of Pennsylvania](/wiki/University_of_Pennsylvania "University of Pennsylvania")Occupation(s)Former President and [CEO](/wiki/CEO "CEO") of [American Airlines](/wiki/American_Airlines "American Airlines") (1985-1998)

**Robert Lloyd "Bob" Crandall** (born December 6, 1935, in [Westerly, Rhode Island](/wiki/Westerly,_Rhode_Island "Westerly, Rhode Island")) is an American businessman who is the former president and chairman of [American Airlines](/wiki/American_Airlines "American Airlines"). Called an industry legend by [airline industry](/wiki/Airline "Airline") observers, Crandall has been the subject of several books and is a member of the Hall of Honor of the [Conrad Hilton](/wiki/Conrad_Hilton "Conrad Hilton") college.[\[1\]](#cite_note-Robert_Crandall-1)

## Early life

\[ [edit](/w/index.php?title=Robert_Crandall&action=edit&section=1 "Edit section: Early life")\]

The [Great Depression](/wiki/Great_Depression "Great Depression") forced Robert Crandall's father to leave Rhode Island to work selling life insurance, which resulted in multiple relocations. Crandall ended up attending 13 schools before his high school graduation.[\[2\]](#cite_note-2)
He graduated from the [University of Rhode Island](/wiki/University_of_Rhode_Island "University of Rhode Island"), and from the [Wharton School](/wiki/Wharton_School "Wharton School") of the [University of Pennsylvania](/wiki/University_of_Pennsylvania "University of Pennsylvania"), with an [MBA](/wiki/MBA "MBA").[\[3\]](#cite_note-UH-3)

## Airline career

\[ [edit](/w/index.php?title=Robert_Crandall&action=edit&section=2 "Edit section: Airline career")\]

In 1966, he joined [TWA](/wiki/TWA "TWA"), where he worked for six years. In 1972, he left to become a senior financial officer at [Bloomingdale's Department Stores](/wiki/Bloomingdale%27s "Bloomingdale's"), but he returned to the airline industry in 1973, as senior financial vice president of American.[\[3\]](#cite_note-UH-3)

In 1982, he had a famous conversation with [Braniff](/wiki/Braniff_International_Airways "Braniff International Airways") CEO [Howard D. Putnam](/wiki/Howard_D._Putnam "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. That same year, Crandall became American's president. In 1985, Crandall succeeded [Albert Casey](/wiki/Albert_Casey "Albert Casey") as American's chairman and CEO.[\[4\]](#cite_note-4)

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](/wiki/Airline_deregulation "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.[\[5\]](#cite_note-5)[\[6\]](#cite_note-6)

Crandall is credited with creating the first major mileage-reward frequent flyer program in the airline industry, the [AAdvantage](/wiki/AAdvantage "AAdvantage") program, as well as pioneering modern reservations systems through the creation of [Sabre](/wiki/Sabre_(computer_system) "Sabre (computer system)"). He is also credited with pioneering [yield management](/wiki/Yield_management "Yield management").[\[7\]](#cite_note-7) Crandall also serves as a senior adviser and sits on the board of [AirCell](/w/index.php?title=AirCell&action=edit&redlink=1 "AirCell (page does not exist)"), an in-flight telephony company which won the larger of two licenses for [air-ground data service](/wiki/Air-ground_radiotelephone_service "Air-ground radiotelephone service") that provide in-flight broadband service.[\[8\]](#cite_note-8)

In 1998, he retired from American and he went on to work as director of many other companies, including Celestica, Haliburton, and Anixter.

### Criticism of deregulation

\[ [edit](/w/index.php?title=Robert_Crandall&action=edit&section=3 "Edit section: Criticism of deregulation")\]

Before the passing of the 1978 [Airline Deregulation Act](/wiki/Airline_Deregulation_Act "Airline Deregulation Act"), Crandall was one of the act's loudest opponents. When asked to comment on deregulation in June 2008, Crandall stated:

> The consequences of deregulation have been very adverse. Our airlines, once world leaders, are now laggards in every category, including fleet age, service quality and international reputation. Fewer and fewer flights are on time. Airport congestion has become a staple of late-night comedy shows. An even higher percentage of bags are lost or misplaced. Last-minute seats are harder and harder to find. Passenger complaints have skyrocketed. Airline service, by any standard, has become unacceptable.[\[9\]](#cite_note-9)

In 2018, he stated:

> At the time when we opposed \[deregulation\], when I opposed it, we took the view that it was likely to result in a relatively unsatisfactory transportation network, and I think that's happened... If you look at the number of cities that have lost commercial service, you'll see there's a whole lot of places in the country that used to be part of the network that aren't anymore.
> I think that has accelerated the movement of people towards the big cities and has discouraged the creation of medium-sized cities... I think that's adverse to the economy and adverse to the country.[\[10\]](#cite_note-10)

### Reputation for cost-cutting

\[ [edit](/w/index.php?title=Robert_Crandall&action=edit&section=4 "Edit section: Reputation for cost-cutting")\]

While at American Airlines in the 1980s, Crandall was famed for his focus on cost-cutting. One story that has been frequently retold since is that he came up with the idea to remove one olive from every salad served to passengers. No one would notice and the airline would save $40,000 a year.[\[11\]](#cite_note-NYT-11)[\[12\]](#cite_note-NBC-12) Another story, which Crandall himself shared, involved cutting security at a Caribbean station warehouse to the point that the only guard left was a sound recording of a guard dog barking.[\[13\]](#cite_note-13)

## Honors and awards

\[ [edit](/w/index.php?title=Robert_Crandall&action=edit&section=5 "Edit section: Honors and awards")\]

- Hall of Honor of the [Conrad Hilton](/wiki/Conrad_Hilton "Conrad Hilton") college.[\[1\]](#cite_note-Robert_Crandall-1)
- [Horatio Alger](/wiki/Horatio_Alger "Horatio Alger") award, 1997.
- _[Tony Jannus Award](/wiki/Tony_Jannus_Award "Tony Jannus Award")_ for outstanding leadership in the commercial aviation industry, 2001.[\[14\]](#cite_note-Tony_Jannus_Award_past_recipients-14)
- [L. Welch Pogue Award for Lifetime Achievement in Aviation](/wiki/L._Welch_Pogue_Award_for_Lifetime_Achievement_in_Aviation "L. Welch Pogue Award for Lifetime Achievement in Aviation"), 2004.
- [Wright Brothers Memorial Trophy](/wiki/Wright_Brothers_Memorial_Trophy "Wright Brothers Memorial Trophy") from the [National Aeronautic Association](/wiki/National_Aeronautic_Association "National Aeronautic Association"), 2006.

## References

\[ [edit](/w/index.php?title=Robert_Crandall&action=edit&section=6 "Edit section: References")\]

01. ^ [_**a**_](#cite_ref-Robert_Crandall_1-0) [_**b**_](#cite_ref-Robert_Crandall_1-1)["Robert Crandall"](http://www.hrm.uh.edu/cnhc/ShowContent.asp?c=8714). Hrm.uh.edu. Retrieved 2010-08-06.
02. **[^](#cite_ref-2)**Petzinger Jr., Thomas (1995). _Hard Landing: The Epic Contest for Power and Profits That Plunged the Airlines into Chaos_. River Press, New York, 594 p. ISBN 0-8129--2835-0.
03. ^ [_**a**_](#cite_ref-UH_3-0) [_**b**_](#cite_ref-UH_3-1)["Robert Crandall (biography)"](http://www.hrm.uh.edu/cnhc/ShowContent.asp?c=8714). University of Houston. Retrieved 2008-04-01.
04. **[^](#cite_ref-4)**["DePaul University College of Law"](http://www.law.depaul.edu/centers_institutes/aviation_law/crandall_interview.asp). Law.depaul.edu. Retrieved 2010-08-06.
05. **[^](#cite_ref-5)**Greenberg, Peter, _Inside American Airlines: A Week in the Life_, CNBC Documentary Feature, October 18, 2006
06. **[^](#cite_ref-6)**Roeder, David, _Stock Seer Sees No Reason Dow Won't Continue Steady Growth_, sub. _Fear of Flying_, Chicago Sun-Times, October 22, 2006
07. **[^](#cite_ref-7)**["Robert Crandall 1935— Biography"](http://www.referenceforbusiness.com/biography/A-E/Crandall-Robert-1935.html). Referenceforbusiness.com. Retrieved 2010-08-06.
08. **[^](#cite_ref-8)**["News Releases"](http://aircell.mediaroom.com/index.php?s=43&item=56). Aircell.mediaroom.com. 2003-09-11. Retrieved 2010-08-06.
09. **[^](#cite_ref-9)**Bill McGee, March 2008. [\[1\]](https://www.usatoday.com/travel/columnist/mcgee/2008-09-02-airline-regulation_N.htm), _USA Today_.
10. **[^](#cite_ref-10)**Schaal, Dennis (2018-07-24). ["American Airlines Legend Bob Crandall on How Mergers Led to Increased Inequality"](https://skift.com/2018/07/24/american-airlines-legend-bob-crandall-on-how-mergers-led-to-increased-inequality/). _Skift_. Retrieved 2018-07-31.
11. **[^](#cite_ref-NYT_11-0)**Deutsch, Claudia H. (6 May 2001). [". . . And to Penny-Pinching Wizardry"](https://www.nytimes.com/2001/05/06/business/and-to-penny-pinching-wizardry.html?pagewanted=all). _The New York Times_. Retrieved 20 May 2016.
12. **[^](#cite_ref-NBC_12-0)**["How to cure an airlines' ills"](https://web.archive.org/web/20130703112755/http://www.nbcnews.com/id/3073562/ns/business-us_business/t/how-cure-airlines-ills#.Vz8A3YQrK00). _NBC News_. 29 October 2003. Archived from [the original](http://www.nbcnews.com/id/3073562/ns/business-us_business/t/how-cure-airlines-ills/#.Vz8A3YQrK00) on July 3, 2013. Retrieved 20 May 2016.
13. **[^](#cite_ref-13)**["\- YouTube"](https://www.youtube.com/watch?v=_WF6enElrwQ). _[YouTube](/wiki/YouTube "YouTube")_.
14. **[^](#cite_ref-Tony_Jannus_Award_past_recipients_14-0)**["Tony Jannus Award past recipients"](https://web.archive.org/web/20070713183727/http://tonyjannusaward.com/legacy.html). Tony Jannus Society. Archived from [the original](http://www.tonyjannusaward.com/legacy.html) on July 13, 2007. Retrieved 2008-04-01.

## External links

\[ [edit](/w/index.php?title=Robert_Crandall&action=edit&section=7 "Edit section: External links")\]

![](//upload.wikimedia.org/wikipedia/commons/thumb/f/fa/Wikiquote-logo.svg/34px-Wikiquote-logo.svg.png)

Wikiquote has quotations related to _**[Robert Crandall](https://en.wikiquote.org/wiki/Special:Search/Robert_Crandall "q:Special:Search/Robert Crandall")**_.

- [Appearances](https://www.c-span.org/person/?6867) on [C-SPAN](/wiki/C-SPAN "C-SPAN")
- ["Something Special in the Air?"](https://www.pbs.org/newshour/bb/transportation/jan-june98/crandall_5-20.html), _PBS NewsHour_, May 20, 1998
- [Charge More, Merge Less, Fly Better](https://www.nytimes.com/2008/04/21/opinion/21crandall.html?_r=1&scp=1&sq=Charge%20More,%20Merge%20Less,%20Fly%20Better&st=cse) \- A _New York Times_ op-ed by Crandall, Apr 21, 2008
- ["A Conversation With Robert L. Crandall"](https://law.depaul.edu/about/centers-and-institutes/international-aviation-law-institute/conversations-oral-history-project/Pages/crandall.aspx), _DePaul University_, Sep 22, 2009
- Terry Maxon (Sep 6, 2015). ["Tales from the Beat: Robert L. Crandall"](https://www.dallasnews.com/business/airlines/2015/09/06/tales-from-the-beat-robert-l-crandall). _Dallas Morning News_.

Business positions
Preceded by

[Albert Casey](/wiki/Albert_Casey "Albert Casey")

**[American Airlines CEO](/wiki/American_Airlines "American Airlines")**

1985–1998
Succeeded by

[Donald J. Carty](/wiki/Donald_J._Carty "Donald J. Carty")

Retrieved from " [https://en.wikipedia.org/w/index.php?title=Robert\_Crandall&oldid=1238424279](https://en.wikipedia.org/w/index.php?title=Robert_Crandall&oldid=1238424279)"

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