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American Airlines cancels Airbus A350 order with blunt message

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American Airlines cancels Airbus A350 order with blunt message
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View from the Wing | View from the Wing

Brian Sumers, in his subscription newsletter, interviewed former American Airlines Chief Commercial Officer Vasu Raja and shared a story about American Airlines canceling its order for Airbus A350 widebody aircraft. The account sheds light on the unconventional approach taken by Raja.

Raja, then serving as a vice president, directly informed Airbus senior management that the airline did not wish to proceed with the acquisition of any Airbus A350s. This abrupt communication left Airbus executives stunned, especially given that American Airlines had inherited a favorable deal from US Airways allowing them to procure the aircraft at a significantly reduced price.

"Vasu out of nowhere deadpans and looks at them and says, 'You know what, let me explain it to you this way. You are selling a great lawn mower. Actually, you’re giving it away for free. Here is the problem. I live in a high-rise penthouse,'" recounted Sumers.

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Sumers noted that "No other mid-level executive, my source said, would use language like that in a business deal with Airbus," considering how formal American Airlines typically is in such matters. He added that this formality was particularly evident before the merger with US Airways. In 2012, the airline once requested him not to publish a photo of one of their vice presidents wearing a pantsuit. However, post-merger cultural shifts allowed Raja more leeway in his communication style.

Despite canceling the A350 order, American Airlines did take delivery of an A350 simulator and primarily rented out time on it to Delta Air Lines.

This story ranks as Sumers' second favorite involving meetings between airlines and Airbus executives. His top story involves an incident from the 1990s when Chinese airline officials misunderstood Airbus's product offerings during discussions led by [Airbus Chief Operating Officer John] Leahy.

Leahy's team explained Airbus's structure and forecast for Chinese aviation during their meeting. When it concluded after exactly 60 minutes, the Chinese airline chairman thanked Leahy but declined his product through a translator because they were installing jetways and no longer needed buses to transport passengers from terminals to remote stands.

Despite this episode with the A350s, American Airlines continued its business relationship with Airbus by ordering A321XLRs and more recently additional A321neos earlier this year.

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