Robert Crandall

Definition of 'Robert Crandall'


A former president, CEO and chairman of AMR Corporation, the holding company for American Airlines, from 1985 to 1998. Crandall is known both for his executive leadership and for his innovations, including a computer reservation system for travel agents that revolutionized the industry.

Investopedia explains 'Robert Crandall'


Born in 1935 in Rhode Island, Crandall earned his MBA from the Wharton School at the University of Pennsylvania. He began his career with Eastman Kodak in 1960 as a credit supervisor and later worked for Hallmark, Trans World Airlines and Bloomingdales before joining American Airlines in 1973 as its senior vice president of finance, where he helped make AMR a top Fortune 500 company.

Crandall's booking system became a key component of American's financial success. The system made it easier to book travel, made last-minute reservations possible and allowed consumers to purchase tickets in advance at a discount, which benefited airlines by improving their cash flow. Crandall also created the industry's first frequent-flier program, AAdvantage.


Filed Under:

comments powered by Disqus
Hot Definitions
  1. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  2. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  3. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  4. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
  5. Family Limited Partnership - FLP

    A type of partnership designed to centralize family business or investment accounts. FLPs pool together a family's assets into one single family-owned business partnership that family members own shares of. FLPs are frequently used as an estate tax minimization strategy, as shares in the FLP can be transferred between generations, at lower taxation rates than would be applied to the partnership's holdings.
  6. Yield Burning

    The illegal practice of underwriters marking up the prices on bonds for the purpose of reducing the yield on the bond. This practice, referred to as "burning the yield," is done after the bond is placed in escrow for an investor who is awaiting repayment.
Trading Center