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By David Koenig
THE ASSOCIATED PRESS
FORT WORTH, Texas —
The embattled chairman and
chief executive of American
Airlines resigned Thursday, and
the company reached out to
workers with an easier-to-swal-
low cost cutting package as the
world’s largest carrier desperately
tried to avoid bankruptcy.
The resignation of Donald J.
came after flight attendants
balked at the new deal, which
improves potential bonuses for
mployees and shortens the
length of concessions by one year
to five years. The deal would also
provide incentives for “additional
cash compensation ” said John
Darrah, president of the pilots’
union.
The boards of the pilots’ and
transport workers’ unions
approved the new concessions
package, but flight attendants also
would have to OK it, as would the
company’s board of directors.
The new chief executive,
Gerard Arpey, called the top four
officials of the flight attendants’
union to his office Thursday
night, a union spokesman said.
tossed out of court.
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u
(I will) restore the
confidence of all
employees in their
great company.
— Gerard Arpey
new AA CEO
The spokesman, George Price,
said the union had not rejected
the latest deal but still had con-
Malvo’s confessi, cems about its “duration and lack
of incentives.” He said the union
board could vote on the measure
Friday morning.
A $1.8 billion cost-cutting
package that was agreed upon
last week unraveled after
employees learned of previously
undisclosed executive perks,
including bankruptcy-proof pen
sions and huge bonuses.
Carty apologized for not
LdlKO te Ding workers sooner about
the executive benefits. The
company eventually canceled
bonuses for the top six execu
tives that were worth twice
their annual salary, but left in
place the $41 million in pen
sion funding for 45 executives.
Arpey, the company’s presi
dent, replaced Carty as CEO,
! while board member Edward
A. Brennan will take over as
•chairman.
| Arpey said he would work
to “restore the confidence of
all employees in their great
company.”
It was not clear, however,
whether the combination of
Carty’s resignation and the
sweetened labor deal would be
enough to prevent a bankruptcy
filing by the world’s largest
carrier. AMR board members,
who met all day Thursday,
declined to comment, referring
questions to the company.
Adding to the pressure on
Carty was Wednesday’s first-
quarter financial report from
AMR. which posted a worse-
than-expected $1.04 billion loss.
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theclogstore.com
OO-948-CLOG
TEXAS A&M
TRAP & SKEET CLUB
The Trap & Skeet Club will be
having a fun shoot in Snook,
TX - Saturday, April 26.
Participants of all skill levels
welcome. The events will
include Trap, Skeet, and
Sporting Clays.
Prizes will be awarded.
Directions and further
details availableat
http://recsports.tamu.edu/skeet/
Cost: S I0 per event
s 25 for all three
Congratulations to the following students who were honored at Leadership Invitational, sponsored by
Class Councils and The Association of Former Students, held on April 24, 2003. The following student
organizations and leaders were recognized for their outstanding contributions to the Texas A&M
campus and community.
Ags of Oak
Philadelphia Sisters
Freshmen Leaders in Christ
Delta Zeta
Kappa Delta
Kappa Alpha Theta
Howdy Ags
Muster Committee
Fish Camp
Yell Leaders
Aggie Band
Meredith Talley
Fish Drill Team
Replant
Big Event
Project Sunshine
MSC Current Issues Awareness
Wiley Lecture Series
Carpool
Student Government Association
Traditions Council
Fail Activities Council
Zac Coventry
The Association
OF FORMER STUDENTS’'
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