richard
Apr 25, 03, 10:01 am
http://www.btnmag.com/businesstravelnews/headlines/article_display.jsp?vnu_content_id=1874824
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Don Carty last night resigned under pressure as chairman and CEO of American Airlines parent AMR Corp., following a tumultuous week for the world's largest airline. The board of directors appointed president and COO Gerard Arpey as CEO and veteran director Edward Brennan as executive chairman. They face the prospect of a potential bankruptcy filing as early as Monday.
Carty's departure last night was coupled with final authorization by pilots and ground workers unions for modified labor contracts. The eleventh-hour deals, salvaged as part of the company's last-ditch efforts to avoid Chapter 11, will not amount to much if the flight attendants union does not okay a similar agreement. Leadership at the Association of Professional Flight Attendants at press time was continuing deliberations and is expected to announce a decision later today.</font>
The article points out further that the same board that cast a supposedly blind eye to Carty while he set up the various senior exec comp and pension package is still involved in running AA.
It shows a reality disconnect, that Carty could have gotten away with what he did, not realizing how it would look to labor. And that the board could have let Carty do this. Either the board was oblivious, which is bad, or the board knew, which is bad.
That is why I think AA is going to enter bankruptcy -- the FAs are too mad.
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Don Carty last night resigned under pressure as chairman and CEO of American Airlines parent AMR Corp., following a tumultuous week for the world's largest airline. The board of directors appointed president and COO Gerard Arpey as CEO and veteran director Edward Brennan as executive chairman. They face the prospect of a potential bankruptcy filing as early as Monday.
Carty's departure last night was coupled with final authorization by pilots and ground workers unions for modified labor contracts. The eleventh-hour deals, salvaged as part of the company's last-ditch efforts to avoid Chapter 11, will not amount to much if the flight attendants union does not okay a similar agreement. Leadership at the Association of Professional Flight Attendants at press time was continuing deliberations and is expected to announce a decision later today.</font>
The article points out further that the same board that cast a supposedly blind eye to Carty while he set up the various senior exec comp and pension package is still involved in running AA.
It shows a reality disconnect, that Carty could have gotten away with what he did, not realizing how it would look to labor. And that the board could have let Carty do this. Either the board was oblivious, which is bad, or the board knew, which is bad.
That is why I think AA is going to enter bankruptcy -- the FAs are too mad.