Former American Airlines CEO Doug Parker Stepping Down as Chairman
Former American Airlines CEO Doug Parker, who led the company through the merger that brought together American Airlines and US Airways to form the world’s largest carrier, is stepping down as the company’s chairman at the end of April, the company said Thursday.
Parker, 61, led the company from 2013 to March 2021, when he handed the reins to Robert Isom, the company’s longtime president and a business partner since they worked together at America West. In all, Parker spent more than two decades as CEO of major U.S. airlines, an unceasingly chaotic role he held through three recessions and an era of consolidation.
Parker then moved into the role of chairman but has not had an executive position at the company since he stepped down as CEO, unlike his counterpart at Southwest Airlines, Gary Kelly, who took an executive chairman role at that airline and remains an active lobbyist and adviser with an office near that of CEO Robert Jordan.
Stepping in as independent chairman is board member Gregory Smith, 56, who joined the board in 2022 after a 30-year career with The Boeing Co., finishing his tenure as executive vice president and chief financial officer. Smith was a key player in Boeing’s efforts to return the 737 Max to service after it was grounded worldwide following crashes in 2018 and 2019.
“Our CEO transition has been flawless thanks to the great work of Robert Isom, his team and our board,” Parker said in a statement. “Now is the right time for our chairman transition and we are fortunate to have Greg Smith in place to assume that role. Greg has made outstanding contributions since joining American’s board, and his strong knowledge of the aviation industry and his decades of leadership experience will be invaluable going forward.”
Parker started his career at American Airlines in 1986 in the finance department before moving to Northwest Airlines and then on to America West, where he would become CEO just days before the Sept. 11, 2001, terror attacks.
Parker was also a key figure in the merger between American Airlines and U.S. Airways in 2013, orchestrating the takeover of bankrupt American Airlines and assuming the role as CEO of the world’s largest carrier. He was also instrumental in efforts in 2020 to secure more than $50 billion in federal government grants and even more in loans as the airline industry faltered with worldwide shutdowns from the COVID-19 pandemic.
Parker said he would have likely retired years before if not for the pandemic.
Parker’s time as CEO at American was often tumultuous as he took the helm of an airline with deep labor relations issues that struggled for years to merge two massive companies.
But he also orchestrated a massive fleet renewal program with orders from Boeing and Airbus that have made American’s aircraft much more fuel efficient and lowered costs. It was also under Parker’s tenure that the company opened a new headquarters building in Fort Worth in a $1 billion collection of facilities called SkyView, moving from their ‘80s-era offices nearby.
In nine years as CEO, Parker also accumulated 2.7 million shares of stock worth about $42.3 million, based on Wednesday’s stock price. He made between $10 and $12.3 million a year during his years as CEO, including salary and stock compensation.
Smith, the former executive vice president and chief financial officer of The Boeing Co., will assume the role of chairman April 30. He’s also served on the board of directors of Intel Corp., as well as Lurie Children’s Hospital and Northwestern Memorial Healthcare in Chicago.
Smith was tapped for American’s board just a month after Parker announced his retirement.
American Airlines board members Ray Robinson and Jim Albaugh are also retiring from the board at the end of their term.
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