North American airline: Equipping 525 managers to deliver

1 min read

Manager-Led Execution

A major airline formed by a merger fell into bankruptcy within three years, its culture consumed by internal turf wars. We equipped its 525 middle managers, the link between strategy and daily operations, to lead differently, lifting customer loyalty from 41% to 65% and delivering 175 million dollars in annual savings.

Outcome 1: Customer loyalty rose from 41% to 65%, generating an estimated 300 million dollars in extra revenue
Outcome 2: 175 million dollars in annual cost savings, from 400 outdated systems resolved
Outcome 3: On-time performance improved by 12%

The challenge

A merger created the country’s largest full-service airline, but within three years it had filed for bankruptcy. The culture had become one of internal turf wars and top-down control, with employees focused on protecting their patch rather than serving 32 million customers a year. The recovery plan existed at the top. The 525 middle managers who had to turn it into daily action were the missing link.

Without a capable, customer-focused layer of middle managers, the strategy would stay on paper, the customer experience would keep getting worse, and the financial recovery would stall.

The approach

Working with the executive team, we designed an intensive eight-month program for 525 middle managers. Each took part in two-day leadership sessions followed by one-to-one coaching, gaining new tools for leading, solving problems and making customer-focused decisions. Managers were given real projects to fix outdated policies and systems, and the program launched at a 500-person customer experience conference with full executive backing.

The impact

Customer loyalty rose from 41% to 65%, worth an estimated 300 million dollars in extra revenue. The 525 managers resolved more than 400 outdated business systems, saving 175 million dollars a year, on-time performance improved by 12%, and baggage complaints fell to a ten-year low. Trust grew between senior managers and frontline staff, restoring the airline’s performance, finances and reputation.