American Airlines Group Inc. Chairman Doug Parker, a longtime advocate for consolidation who oversaw a merger that made the carrier the world’s largest, plans to retire from the board, a little over a year after stepping down as chief executive officer.
(Bloomberg) — American Airlines Group Inc. Chairman Doug Parker, a longtime advocate for consolidation who oversaw a merger that made the carrier the world’s largest, plans to retire from the board, a little over a year after stepping down as chief executive officer.
Greg Smith, a former Boeing Co. chief financial officer who joined the airline’s board in January 2022, will take over when Parker, 61, gives up the role on April 30. Two other American directors will retire at the carrier’s annual meeting, according to a statement Thursday.
The board shakeup comes at a delicate time as the industry tries to capitalize on soaring demand for air travel while battling high costs and shortages of pilots and new aircraft. The Fort Worth, Texas-based carrier also is negotiating contracts with its largest unions as it works to cut its industry-leading debt by $15 billion by the end of 2025.
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Parker served as American CEO from December 2013, when the carrier merged with US Airways, through March 2022, saying he likely would have stepped down sooner had it not been for the need to lead the carrier through the coronavirus pandemic.
At that time, Parker was the longest-serving CEO among major US carriers, starting at America West Holdings Corp. in 2001, then US Airways. He began his airline career at American under Bob Crandall, who led the company in the 1980s and 1990s.
Parker led consolidation in the industry that began in 2005, when America West took over a bankrupt US Airways. After several subsequent failed attempts, he secured the blockbuster deal that made American the largest airline based on passenger traffic. He fashioned a unique band of support among American’s union leaders to win the backing of creditors during the bankruptcy of American’s then-parent company, AMR Corp.
The chairman handover will be the latest in a series of changes for American’s board, which added new members in each of the last three years.
Ray Robinson, a former AT&T Corp. executive who has been a director since 2005, and Jim Albaugh, one-time CEO of Boeing Co.’s commercial airplane division, will step down later this year. He was among board members named with the American-US Airways merger.
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