Posted on 04/24/2003 4:55:02 PM PDT by Timesink
Developing/..
| FOR IMMEDIATE RELEASE: Thursday, April 24, 2003 AMR ANNOUNCES NEW LEADERSHIP DONALD J. CARTY STEPS DOWN AS CEO AND CHAIRMAN
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. |
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STATEMENT BY DONALD J. CARTY OVER THE COURSE OF THE PAST TWO YEARS, THE MANAGEMENT TEAM, UNION LEADERS AND AMERICAN AIRLINES' EMPLOYEES HAVE KNOCKED DOWN BARRIER AFTER BARRIER IN THE WAY OF THIS COMPANY'S SUCCESS. I AM CONFIDENT THAT THE HARD WORK EVERYONE IS DOING WILL SEND A STRONG SIGNAL THAT THE COMPANY IS INTENT ON RE-ESTABLISHING PRODUCTIVE RELATIONS WITH ITS UNIONS AND ITS EMPLOYEES - A KEY INGREDIENT, BY ANY MEASURE, TO ANY COMPANY'S SUCCESS. IT IS NOW CLEAR THAT MY CONTINUING ON AS CHAIRMAN AND CEO OF AMERICAN AIRLINES IS STILL A BARRIER THAT, IF REMOVED, COULD GIVE IMPROVED RELATIONS - AND THUS LONG-TERM SUCCESS - THE BEST POSSIBLE CHANCE. SO TODAY, TO REMOVE THAT BARRIER AND TO HELP MAKE POSSIBLE THE SUCCESS AMERICAN'S EMPLOYEES SO RICHLY DESERVE, THE AMR BOARD OF DIRECTORS HAS ACCEPTED MY OFFER TO STEP DOWN AS CHAIRMAN AND CEO OF AMERICAN AIRLINES. I AM VERY PLEASED THAT EDWARD A. BRENNAN, A MEMBER OF THE AMR BOARD OF DIRECTORS FOR WELL OVER A DECADE, WILL SERVE AS THE EXECUTIVE CHAIRMAN OF AMERICAN AIRLINES. I AM ALSO DELIGHTED THAT THE BOARD HAS APPOINTED GERARD ARPEY AS CHIEF EXECUTIVE OFFICER OF AMERICAN AIRLINES. GERARD HAS BEEN A TREMENDOUS FRIEND AND PARTNER OVER THE YEARS. 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. SO TODAY, IT IS MY MOST FERVENT HOPE THAT MY RESIGNATION AND THE APPOINTMENT OF ED AND GERARD WILL ENABLE THE COMPANY, ITS UNIONS AND ITS EMPLOYEES TO BEGIN TO BUILD A BRIDGE BACK TO THE PATH THAT PROMISED A NEW CULTURE OF COLLABORATION, COOPERATION AND TRUST. THIS IS A GREAT AIRLINE WITH THE BEST EMPLOYEES IN THE BUSINESS. I WANT TO THANK THEM FOR THE EXTRAORDINARY THINGS THEY DO FOR EVERY CUSTOMER, EVERY DAY. IT IS BECAUSE OF THEM THAT AMERICAN ENJOYS THE BEST CUSTOMER PREFERENCE RECORD IN THE BUSINESS. I HAVE BEEN VERY PROUD TO SERVE THEM. I WANT TO THANK MY MANAGEMENT TEAM, WHICH HAS LED THE VERY CHALLENGING, AND EQUALLY INNOVATIVE RESTRUCTURING EFFORT. THEY HAVE GIVEN UP MUCH TO SHEPHERD THIS COMPANY THROUGH A VERY DIFFICULT TIME. I ADMIRE THEIR COMMITMENT AND PROFESSIONALISM. IT HAS BEEN AN HONOR TO WORK WITH EACH AND EVERY ONE OF THEM. I ALSO WANT TO THANK THE AMR BOARD OF DIRECTORS. AMR ENJOYS, WITHOUT A DOUBT, ONE OF THE FINEST BOARDS IN AMERICA - A BOARD THAT CONSISTENTLY SETS STANDARDS FOR THE HIGHEST ETHICAL PRACTICES IN CORPORATE AMERICA. I APPRECIATE THAT THEY ENTRUSTED ME TO LEAD AMERICAN THROUGH ONE OF THE MOST DIFFICULT PERIODS IN AVIATION HISTORY. I AM GRATEFUL FOR THEIR GUIDANCE AND SUPPORT DURING MY TENURE AT THE COMPANY'S HELM. THEY HAVE BEEN INVALUABLE TO ME, AS I KNOW THEY WILL BE TO GERARD. AND TO ED AND GERARD I SAY, YOU ARE PRIVILEGED TO NOW BE LEADING THE BEST AIRLINE IN THE INDUSTRY - AN AIRLINE WITH THE RIGHT PLAN AND THE RIGHT PEOPLE TO SUCCEED TODAY, TOMORROW AND WELL INTO THE 21ST CENTURY. YOU HAVE A TREMENDOUS LEGACY ON WHICH TO BUILD - A LEGACY OF STRENGTH, PRIDE, SERVICE, HEROISM, RESILIENCY, INNOVATION, AND COMMITMENT. I KNOW YOU WILL BE AS PROUD TO SERVE THE MEN AND WOMEN OF THIS GREAT COMPANY AS I HAVE. I WILL ALWAYS CHERISH MY TIME AT AMERICAN. I HAVE LOVED THIS AIRLINE AND ITS PEOPLE FOR THE MORE THAN TWENTY YEARS I HAVE HAD THE ENORMOUS PRIVILEGE TO SERVE THEM. I AM CONFIDENT THAT AMERICAN WILL CONTINUE TO SET NEW STANDARDS OF EXCELLENCE AND SOAR TO NEW HEIGHTS. I LOOK FORWARD TO CHEERING THEM ON. |
AN EXCEPT FROM GERARD ARPEY'S REMARKS TO THE AMR BOARD OF DIRECTORS IN ACCEPTING HIS APPOINTMENT AS CHIEF EXECUTIVE OFFICER "IN MY 21 YEARS WITH THIS GREAT COMPANY, I BELIEVE I HAVE EARNED THE RESPECT AND TRUST OF ALL THOSE I HAVE WORKED WITH, FROM EMPLOYEES, TO STOCKHOLDERS, TO SUPPLIERS, TO THOSE IN THE COMMUNITY IN WHICH I LIVE. "AS I STEP INTO THIS BROADER LEADERSHIP ROLE, I WANT EMPLOYEES TO KNOW THAT I WILL CONTINUE TO LEAD BY EXAMPLE. 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." |
Most of the TWA employees will be gone.
Arpey will be running the airline, Brennan is a mere figurehead. He doesn't know jack about the airline business.
Arpey's sharp; I look for Brennan to do this for a couple of years, and Arpey will succeed him.
It depends on the perpetually-PMSed stews.
If they hold their re-vote, they'll vote the contract down.
I hope it does. Much of what has happened over the last two years has been out of Carty's control.
He makes one mistake, and he's out.
American's employees have been a disgruntled bunch for 20 years. I hope Arpey can reach them, though I don't think God Himself could reach some of these pygmies.
That means a judge will determine what the contracts look like.
A fresh start for everybody.
Everybody who's left, that is.
If the judge doesn't make American's business model look more like Southwest's business model, then it will do no good. American is a major employer around here - look for the unemployment offices to start filling up soon.
(And damn it, I have to fly American next month. I'm seriously considering purchasing a backup ticket for the same date on another airline. The worst that could happen is that I'll be out about $200).
CHICAGO (Reuters) - AMR Corp.'s American Airlines will file for Chapter 11 bankruptcy protection on Friday or perhaps Monday unless its flight attendants agree shortly to accept pay concessions, several sources familiar with the matter told Reuters on Thursday.The impending move in the U.S. Bankruptcy Court in New York comes after AMR's board met throughout the day on Thursday in Texas to consider the fate of the world's largest airline, which has been embroiled in a big dispute with its three major unions.
Chief Executive Don Carty was asked to resign, sources familiar with the matter said, and he will be replaced by President and Chief Operating Officer Gerard Arpey, who retains his title as president.
AMR in a late statement said board member Edward Brennan would take over as executive chairman.
Pilots, along with mechanics and other ground workers, agreed to certify concession packages last week with a few new provisions, but flight attendants did not meet a late afternoon deadline set by the board of directors, the sources said.
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