Avis, ANC Tap Vets For Top Posts
David Siegel, former president of Continental Express, has been appointed chairman and CEO of Avis Rent A Car System Inc., which is owned by Cendant Corp. Siegel replaces A. Barry Rand, who left Avis last March. Meanwhile, ANC Rental Corp., the parent company of National Car Rental and Alamo, has appointed William N. Plamondon III to craft a new turnaround strategy.
Siegel, who started his career as a consultant at Bain & Co. and later served as director of corporate planning for Northwest Airlines, is credited with increasing the annual profit contribution from Continental Express to parent company Continental Airlines by $250 million, and dramatically improving its performance, as measured by the U.S. Department of Transportation. Siegel joined Continental in 1993 as vice president of corporate development. After implementing the route and fleet restructuring plan that helped to get CO back on its feet, he became president of Continental Express in 1995.
Siegel is no stranger to the car rental industry: In November 1999, Budget Group Inc. hired him as president and COO. However, the relationship didn't work out, and Siegel left after just a few months on the job. Although neither Siegel nor Budget executives would comment, an industry insider said the problems apparently were routed in personality differences between Siegel and Budget CEO Sandy Miller.
Siegel will oversee all sales, marketing, finance, operations and human resources for Avis, which also includes vehicle leasing division PHH Arval and Wright Express. He will report to John Chidsey, chairman and CEO of Cendant's vehicle and financial services division. Siegel also may play a role in linking Avis more closely with its sister brands. "He has an enormous opportunity to take these very strong brands in their respective sectors and build on the synergies and strategies," said Neil Abrams, president of Abrams Consulting International in Purchase, N.Y.
Already struggling before the Sept. 11 attacks, ANC Rental, which officially is for sale, now is apparently in dire straits. Creditors have agreed to defer a principal payment of $70 million, due Oct. 1, until Nov. 30, and certain financial covenants have been suspended through Nov. 15, according to an ANC press release. ANC Rental lost $96.2 million in the first half of this year and has announced a 25 percent to 35 percent fleet reduction in the wake of the attacks. Along with two other car rental companies, it is seeking a bailout from the federal government, according to Abrams.
As chief restructuring officer, Plamondon, former chairman of ANC Rental's audit committee, is responsible for developing and implementing a turnaround plan that will address the company's cash flow and liquidity needs. Plamondon was president of Budget when it was acquired by Sandy Miller, head of what was then Budget's largest franchisee, Team Rental Group, in 1997 from Ford Motor Co. (BTN, Jan. 27, 1997). Assisting him will be consultant Lawrence Ramaekers, who, as former president and COO of National, turned around National for General Motors before William Lobeck, former head of Thrifty Car Rental, bought it in 1995.