The world’s largest airline posted the
Talking to analysts and reporters from headquarters near the Dallas/Fort Worth airport, AMR president, chief executive, and president Gerard Arpey repeatedly stressed that employee cooperation and initiatives were key to the strong performance, and pointed out the positive gains of labour/management cooperation in its maintenance services unit. AMR Fourth Quarter Earnings Conference Call And Arpey repeatedly stressed that AMR stepped as deeply as it did into black ink without the advantages of bankruptcy court protection, unlike some of its competitors. It was these very factors that led the judges in the Airline Business Strategy Awards to nominate and select Arpey and his team as winners in the Strategy Awards for 2006 in Executive Leadership (http://www.strategyawards.com/2006%20pdfs/AB-037-Aug06.pdf ).
All, however, is not coming up roses in the Texan winter: the immediate reaction of American’s pilots union, the Allied Pilots Association, was to express “outrage” that the strong results could end up as executive bonuses. Based on closing prices of AMR shares, performance bonuses to be paid in April could easily total about $218 million, said APA president Ralph Hunter. Because a “disproportionate share” of AMR bonuses would go to some 50 senior executives, Hunter said “it is insulting for senior managers to be receiving a windfall that may equal or exceed all of our airline’s earnings in 2006″. APA Outraged That Executive Bonuses Could Match or Exceed American Airlines’ 2006 Net Profit The union has been vocal recently, refusing to agree to a management request to change work rules to allow American to fly its proposed Dallas/Fort Worth to