BOARD MEMBER WANTS CARTY OUT!

WingNaPrayer

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AMR Board Member To Ask Replacement Of CEO Carty - MSNBC


NEW YORK (Dow Jones)--A prominent AMR Corp.(NYSE:AMR) (AMR) board member is seeking replacement of Chairman and Chief Executive Donald Carty, but not all-out resignation, MSNBC reported Thursday.
Former U.S. Sen. David Boren, R-Okla., said Carty has a credibility issue, MSNBC said. Boren now serves as president of the University of Oklahoma, a state where AMR''s American Airlines is a prominent employer.
Boren''s comments came as AMR''s board met to consider Carty''s fate along with a possible bankruptcy filing as management tried to assuage labor leaders angry over executive perks that could scuttle cost-cutting agreements reached last week.
Boren said most directors had been led to believe that the chairman and CEO had disclosed executive bonuses to union leaders before employees approved $1.8 billion in annual concessions, the AP reported.
Mr. Carty has lost the credibility and trust necessary to effectively lead the company through challenging times, Boren told the Tulsa World.
A spokesman said American had no comment on the Boren''s remarks.
On Wednesday, AMR reported a worse-than-expected $1.04 billion first-quarter loss, and Carty and other executives met with union leaders in an effort to salvage the concessions deals, which American says it needs to avoid bankruptcy.
Employees remain angry after learning late last week about executive bonuses and pension payments that would be protected in bankruptcy. Two of the three unions now want new votes on concessions that Carty insists are necessary to ward off a Chapter 11 bankruptcy filing.
Analysts say the labor unrest has increased pressure on the company''s board of directors to remove Carty.
U.S. Rep. Martin Frost, D-Texas, and Rep. Pete Sessions, R-Texas, both said a possible bankruptcy filing would be on the board''s agenda Thursday. The meeting time was as yet undetermined.
If it is left unresolved, there''s a pretty good chance the board will approve a Chapter 11 filing, Frost said.
A person involved in Wednesday''s negotiations, who spoke on condition of anonymity, said American was considering sweetening its original offers to the unions to stop new elections or to speed up the voting process.
Unions representing flight attendants and ground employees were planning 30- day elections, while the pilots'' union is threatening to withhold formal approval of its earlier vote.
The quarterly loss was equivalent to $6.68 a share, compared with a loss of $ 1.56 billion, or $10.09 a share, in last year''s first quarter. Analysts surveyed by Thomson First Call had expected a loss of $6.08 per share, or $948 million.
Carty blamed the first-quarter results on weak travel demand caused by the sluggish economy, war in Iraq and the SARS outbreak. He also said high fuel prices and low fares contributed to results that were truly dreadful.
All told, it''s a perilous climate and our success is far from assured, he said in a statement.
None of American''s unions have demanded Carty''s resignation, but some members of the pilot''s union board believe the CEO should go, said spokesman Steve Blankenship.
We''re not having to do much. This guy is setting himself up to fail, Blankenship said. The issue is clearly on the AMR board''s shoulders.
Carty has apologized for not disclosing the executive perks sooner. The company canceled the bonuses but not the $41 million in pension funding for 45 executives.
 

FA Mikey

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On 4/24/2003 11:51:28 AM WingNaPrayer wrote:
A person involved in Wednesday''s negotiations, who spoke on condition of anonymity, said American was considering sweetening its original offers to the unions to stop new elections or to speed up the voting process.
Unions representing flight attendants and ground employees were planning 30- day elections, while the pilots'' union is threatening to withhold formal approval of its earlier vote.
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For my consideration you will have to lose the underfly and offer me no less than 8 hours behind the door.
 

Connected1

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Aug 20, 2002
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Boren is known for shooting from the hip with some really bad ideas. Chief among them was his suggestion last year that the Texas-OU football game be converted to a home-and-home series instead of it being played at the Cotton Bowl during the Texas State Fair. You would think that being on the same board as Roger Staubach would help out his football sense, but...

Boren Still Doesn''t Know His Football
 

Flyboy4u

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Oct 6, 2002
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On 4/24/2003 12:54:23 PM Connected1 wrote:

I''ve heard Boren rumored as an interim Carty replacement. Not sure if I could work for a Sooner...

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Boren has a proven track record and is highly respected amoung those in the business and political arenas. Whether or not you can work for a Sooner is irrelevant. If he can get the labor unions and management together working towards saving this airline, I would gladly welcome him aboard. The ultimate goal is to make sure AA survives and it seems alot of workers keep forgetting that.
 

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