The AMR Board of Directors has accepted the resignation of CEO and Chairman Don Carty today, following a heated meeting of American Airlines’ board. Donald made a critical misstep during negotiations with the airline`s unions over wage and benefit concessions and has been held responsible for not revealing the top-level perks before staff agreed to big pay cuts.
He came under further pressure when the airline’s parent company AMR Corporation posted a massive $1.04billion loss on Wednesday .
Donald had served as chairman and chief executive since 1998 and had worked at the airline for more than two decades
The AMR Board has today 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, 56, 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.