United Airlines CEO Scott Kirby is one of the most outspoken people in the airline industry. Sometimes he rubs people the wrong way, and other times he downright confuses them. However, no matter what you think of him personally, there is no denying that he has done an incredible job leading a change in trajectory for the airline compared to its competitors. This brings us to Kirby’s latest fascinating interview…
The 10 Most Memorable Things Kirby Said in a New York Times Interview
Yesterday, the New York Times published an interview with Kirby and, as usual, it contains many statements and positions. I’d like to briefly share the 10 statements he made that I found most interesting (and we’ll ignore his schedule, which he says is the most unusual of any CEO). In no particular order:
- Kirby defended charging more to avoid a middle seat by explaining that “some customers want to sit in a window seat or a better seat, and that costs money to deliver,” and said the way to give everyone what they want is to “charge for the services and products that those customers want.”
- Kirby says that while airfares have increased, “the truth is they’re really bouncing off an artificial low due to Covid,” and four out of eight publicly traded U.S. airlines are going to lose money this year, so they “have to charge enough to cover the cost of flying, and flying planes is expensive.”
- Kirby says people confuse management with leadership, and that his job is “really making five decisions a year – the big decisions with no clear right or wrong answers that only the CEO can make.”
- When Kirby was fired from American 10 years ago, he said it didn’t hurt him, but “it felt more like a betrayal” and that he “wanted to go somewhere else and prove something.”
- Kirby says he is “a better CEO of United Airlines because of what happened” at American than he “would have been a CEO of American,” and “that has forced some soul-searching.”
- Kirby believes that “wealth inequality has become a danger to our society and we need to address it”, and he suggests that “we should have a national wealth tax” and “we should have inheritance taxes that approach 100% at some level”, and he would “pay them”.
- When Kirby boards a plane, the first thing he looks for is smiling, positive flight attendants.
- One of Kirby’s more contrarian positions is that he thinks “AI is going to be really powerful, but we’re in an investment bubble” and “there’s just no way it’s going to generate that much revenue.”
- Kirby thinks America’s “future is incredibly bright,” and he’s “not in the dumps like a lot of people are,” and he thinks “people on both sides of the aisle want to do the right thing for the country.”
- Kirby only “occasionally flies private,” and when he does, “it carries a PR risk,” and he also thinks it’s important to fly commercial so he can see both United’s product and that of its competitors.
I can’t help but find Kirby’s takes interesting
As I’ve said many times, I’m conflicted about Kirby. I absolutely think he’s doing an incredible job leading United and charting a very clear path forward for the airline. It’s also amazing to think about what he was known for at American until a decade ago, and the completely different approach he took at United.
I have to say that I can never quite figure out Kirby’s public persona. On the one hand, I really respect his honesty and willingness to talk, even if there’s not necessarily much benefit to the airline or him. You don’t hear many airline CEOs publicly expressing support for an estate tax close to 100% (regardless of how one might feel about that).
But then he also often makes such outlandish claims, where I can’t help but wonder if he’s sincere or if he’s just misleading people. Take for example Kirby’s bizarre tale of creating a mega airline that all Americans are proud of, suggesting it’s good for consumers. I just find that to be such an indefensible statement. Does Kirby really believe him, or…?
Finally – and this is where I sound like an airline apologist, but really I just understand basic math – I find it funny how some people are enraged by the title of this story, which is that “United CEO says it should cost more not to sit in the middle seat.” »
Let’s be clear: Another way to phrase this is “United’s CEO says it should cost less to sit in the middle seat.” The public likes to pretend that airlines are high-margin businesses that do nothing but deceive consumers, but that is not the case. The majority of U.S. airline passengers are carried at a direct loss, with profits offset by well-paid passengers as well as loyalty programs.
Better customer segmentation is actually one of the things that has allowed incumbent carriers to become profitable even while having historically low, inflation-adjusted fares (not currently, but more broadly in recent years). Many people act like we are all entitled to $99 transcon fares while expecting to have an amazing experience. It’s just not realistic.
Conclusion
United CEO Scott Kirby had a fascinating interview with the New York Times, in which he discussed a wide range of topics, as usual. Many airline CEOs limit their interviews to carefully rehearsed talking points, while Kirby isn’t afraid to speak his mind, for better or worse. From the way the Americans “betrayed” him, to his vision of AI and inheritance rights, Kirby certainly did not hesitate…
What do you think of this interview with Kirby?
Gn bussni
