Don Carty, the low-keyed Canadian who rose to the top ranks of American Airlines parent AMR only to be forced out over a bonus scheme, has returned to prominence in the airline industry, becoming non-executive chairman of Virgin America, the Richard Branson-backed startup seeking to start low-fares, long-distance service from a San Francisco base.
Carty, 59, will also become an investor in the project with a stake in VAI Partners, which owns a 75% equity stake in Virgin America, the carrier said. The rest of the airline is owned by the Virgin Group, controlled by Branson.
Carty brings “vast experience†to Virgin America, said the startup’s chief executive, Fred Reid. Carty was chairman and chief executive of American’s parent AMR from 1998, when he succeeded legendary boss Bob Crandall, until April 2003. He resigned then amid labour objections to management perks after unions accepted $1.8 billion in concessions to help the company avoid bankruptcy. Except for two years in the mid-1980s at the helm of American’s affiliate, Canadian Pacific Airlines, Carty spent 24 years at American.
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Carty, 59, will also become an investor in the project with a stake in VAI Partners, which owns a 75% equity stake in Virgin America, the carrier said. The rest of the airline is owned by the Virgin Group, controlled by Branson.
Carty brings “vast experience†to Virgin America, said the startup’s chief executive, Fred Reid. Carty was chairman and chief executive of American’s parent AMR from 1998, when he succeeded legendary boss Bob Crandall, until April 2003. He resigned then amid labour objections to management perks after unions accepted $1.8 billion in concessions to help the company avoid bankruptcy. Except for two years in the mid-1980s at the helm of American’s affiliate, Canadian Pacific Airlines, Carty spent 24 years at American.
Flight International
