Official: New American Air Deal Reached

FORT WORTH, Texas -Negotiators for American Airlines and its unions agreed to a sweetened package of cost cuts to keep the company out of bankruptcy, union officials said Thursday.

The deal improves potential bonuses for employees and shortens the length of the concessions by one year to five years.

FOR IMMEDIATE RELEASE: Thursday, April 24, 2003

AMR ANNOUNCES NEW LEADERSHIP

DONALD J. CARTY STEPS DOWN AS CEO AND CHAIRMAN
EDWARD A. BRENNAN NAMED EXECUTIVE CHAIRMAN
PRESIDENT AND COO GERARD J. ARPEY APPOINTED AS NEW CEO

* Executive Chairman, Edward A. Brennan's Bio and photo
* CEO and President, Gerard J. Arpey's Bio and photo
* Arpey's Remarks to the Board of Directors
* Statement by Don Carty

FORT WORTH, Texas ? The AMR Board of Directors accepted the resignation of CEO and Chairman Don Carty today. The Board named Edward A. Brennan as Executive Chairman and current President and COO Gerard J. Arpey as the new Chief Executive Officer. Arpey continues as President.

Ed Brennan, on behalf of the AMR Board of Directors, thanked Don Carty for his years of service and dedication to the company. They were especially grateful for his stewardship during the most difficult years in aviation history.

Carty praised his successors and said the appointments of Brennan and Arpey will "begin to build a bridge back to the path that promised a new culture of collaboration, cooperation and trust."

In a statement, the Board of Directors said, "In making these appointments, we have great confidence in the team of Ed Brennan and Gerard Arpey."

Ed Brennan, who has served as a member of the AMR Board of Directors for more than 17 years, has the "breadth of experience leading and directing some of the most venerable companies in America and will serve American incredibly well," the Board stated.

In appointing Gerard Arpey, the Board noted that, "His commitment to this company is unwavering. His dedication to its employees is unsurpassed. And his experience and business acumen in this industry is unrivaled."

Arpey promised to work to rebuild trust in management throughout the company and said he looks forward to the value Brennan?s counsel will bring to the company.

First joining American in 1982 as a financial analyst, Arpey served as chief financial officer of AMR from 1995 to 2000, during which time the Company experienced strong profitability. He also led the successful efforts to spin off Sabre from AMR.

And since becoming Chief Operating Officer in 2000, he has guided the Company?s operations out of the depths of the September 11th tragedy to the forefront of industry on-time performance and reliability.

"I will continue to lead by example," Arpey said. "Actions, of course, speak louder than words. And you can expect me to ensure my actions are consistent with the high standards we set for all employees of American Airlines and American Eagle."

Arpey vowed to do his very best to lead American "through these extraordinary times" and "restore the confidence of all employees in their great company."

Carty, 58, has spent more than 20 years at AMR, where he has served as CEO and Chairman since 1998.

Brennan, 69, is the retired chairman, president and CEO of Sears, Roebuck and Co. Prior to his retirement from Sears in 1995, he had been associated with that company for 39 years.

Arpey, 44, has devoted his entire professional career to American Airlines, where he began as a financial analyst in 1982 and became a corporate officer in 1989. He holds a FAA multi-engine instrument rating and is an avid private pilot.

EDITORS? NOTE: DUE TO THE FLUIDITY OF THE CIRCUMSTANCES, MR. ARPEY WILL MAKE HIMSELF AVAILABLE TO THE MEDIA AT THE APPROPRIATE TIME.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.