On American’s Q4 2016 earnings call at the end of January, J.P. Morgan industry analyst Jamie Baker asked American’s Chief Integration Officer (Bev Goulet), which tasks remained on her to-do list. Here’s a transcript of his question and her response:
And the second question for Bev. Could you just outline with a little bit more granularity, and feel free to geek out if you want to, what are the relevant integration exercises that are yet to take place and what’s the approximate timing and approximate risk of each one, or associated with each one?
Well, Jamie, you know me well enough to know that I like to geek out. But I will try to…
We’ve known each other a while.
Really three major projects left to get done. First of all is getting our flight attendants into a common system. Hard at work on that right now. It’s a complicated matter. We are essentially taking an LUS contract and modifying the LAA system to accommodate it. But a lot of really good work going on right now. You know, we don’t have a firm plan yet, but we are optimistic within the next 12-plus months we ought to see something there. Also putting in a state-of-the-art HR and payroll system, again a lot of work there when you consider that it covers 650,000 people or so. And then finally we don’t have our tech ops organization integrated yet. And that is a long-term process, best case probably another three to four years.
Okay, very good. Thanks to both of you. I appreciate it. Good luck.
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