Doubts Grow About Carty

RV4

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Doubts grow about Carty 04/20/2003
By ERIC TORBENSON / The Dallas Morning News




Here is the link to the full story

http://www.dallasnews.com/latestnews/stori...arty.6551c.html




Below is a quote from the above listed story:

Hindsight lends new perspective on Mr. Carty's key strategic decisions that put the airline where it is today:

• Spending $2.6 billion to buy back AMR stock when shares were trading near their highs in the late 1990s now seems ill-advised because the company's cash reserves have dwindled to near-bankruptcy levels. Many carriers, such as Houston-based Continental Airlines, did the same thing because investors demanded better returns on airline shares, which have rarely outperformed the broader market averages.
• Spending $750 million for the assets of bankrupt Trans World Airlines – which made American the world's largest carrier – was considered a bold play in January 2001 but has lost its luster. Mr. Carty referred to the purchase as defensive response to United Airlines' offer to buy US Airways. When that fell through, the TWA deal seemed unnecessary. And Mr. Carty has said he wouldn't have contemplated the TWA purchase given today's financial conditions.
Mr. Levine, the former airline executive who now teaches law at Yale, said the TWA purchase was American's final play in its 40-year effort to overtake United as the world's biggest airline. And United only became that by buying Capital Airlines in 1961.
I still think to this day that American bought TWA in response to United buying Capital Airlines, Mr. Levine said. That move required American to spend the next 40 years trying to top that, and they finally did by buying TWA.
But the TWA assets now hang like dead weight on the company.
The result was that AMR acquired 7 percent of the nation's air capacity at a time when airlines needed to start trimming their schedules. Mr. Carty also inherited TWA employees who felt they were treated unfairly by American's unions. Most of them have already been furloughed, and all the former TWA flight attendants would lose their jobs under the concessions.
But much of what has happened to AMR in the last five years had little to do with Mr. Carty's stewardship. The industry had always been cyclical by nature, but the current down cycle of lower fares, fewer passengers and mounting debt for the big airlines has yet to find a bottom.
 

joejett

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Feb 15, 2003
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Sorry bud, this Guy screwed over non-union employee''s also.And Mr Carty(or if this is Bruce Hicks) if you want ask your supervisors how they Feel.I''m sure you will find them-They are walking around with thier heads hung low.
 

WingNaPrayer

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Thanks to Carty and his henchmen, AA is on the front page of every major newspaper across the country today, and it''s all negative!

That should put butts in them seats!

***** ***** ***** ***** *****
 

joejett

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Feb 15, 2003
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This once again Highlites that this Man and his executives have lost total trust, become an embrassment to the company/industry and a huge liability to the future.If he wanted a legacy from the Airline world-he has one now!!!!!
 

AAObserver

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Actually, you can credit the unions for all the negativity.

If the unions weren''t so bitter and worried about management''s retention benefits (which are common in American business), then none of this would be front page news.

When it''s all said and done and AA ends up in Chapter 7 and all of you are unemployed, it will be the unions, not Carty, who look the worst.
 

AAObserver

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Carty didn''t screw anyone. Carty didn''t give himself the retention bonus, the board did. Besides, his compensation is not the unions'' business. AA employees ultimately report to Carty in the management structure, not vice versa.

The AA unions do nothing but allow disgruntled employees with bad attitudes to stick around like cancers, and that''s what we''re seeing now. In the real world, unhappy people go find other jobs instead of sitting around whining.
 
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bagsmasher

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Carty screwed himself. After touring all over the country to win support for his concession packages, he convinced the rank and file to ratify the deal. But by not negotiating in good faith, by hiding the bonus/retirement deal, he has shown his true colors. He is not for "shared sacrafice" as he says, but is more interested in saving his and his 44 VP''s future. He has sent a clear message to his employees. I hope the board asks for his resignation. This could be his final blunder.
 

AAObserver

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On 4/20/2003 10:59:35 AM bagsmasher wrote:

Carty screwed himself. After touring all over the country to win support for his concession packages, he convinced the rank and file to ratify the deal. But by not negotiating in good faith, by hiding the bonus/retirement deal, he has shown his true colors. He is not for "shared sacrafice" as he says, but is more interested in saving his and his 44 VP''s future. He has sent a clear message to his employees. I hope the board asks for his resignation. This could be his final blunder.

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I have no doubt Carty will end up leaving over this. There are even rumblings that Crandall may come back.

It won''t make a difference though. The unions will find a reason not to like anyone who takes the CEO position.
 

MiAAmi

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Carty reports to his stockholders and right now the board and Carty look like absolute idiots to everyone. The stockholders will not put up with this kind of behavior from Carty. The unions voted to accept concesssions to "help" save the company. My question is why do we need to retain exec''s that have run this company into the ground? Get rid of everyone of them!
 
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RV4

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On 4/20/2003 10:01:57 AM AAObserver wrote:

Actually, you can credit the unions for all the negativity.

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Hmmm,

Let's see Hicks first claims the unions were told but the confidentiality agreements prohibited them from telling the rank and file member.

Then Hicks retracts this statement and says the issue is under review.

Then Carty sends the apology letter to the union leaders.

And now every newspaper in the country wants to retract their praise of Carty and the way this crisis has been handled.

And so, according to the alias AAObserver, this is the unions fault?

Maybe AAObserver could call or e-mail the editors of ALL these newspapers and convince them the unions are to blame, because we have all been hoodwinked and duped to recently to have our guard down.
 

AAObserver

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On 4/20/2003 11:17:32 AM joejett wrote:

Carty's "apology" to his employee's is the same as say sorry for getting someome pregnant after you raped them!!!!!!!!

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Ok, you don't like his apology. What would you rather he had done?

Nothing will ever be good enough for people like you short of Carty cutting his wrist.
 
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RV4

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On 4/20/2003 11:21:38 AM AAObserver wrote:


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What would you rather he have done?


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I would have rather him be honest.

I would have rather him not bought TWA.

I would have rather him not bought back AMR stock and depleted cash.

I would have rather him not left Canada.

I would rather see him resign on a volunteer basis before his destructive decisions are beyond repair.

Maybe there is a French Airline in need of a Dove that thinks running an airline only requires compassion instead of intelligence and integrity?
 
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RV4

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On 4/20/2003 11:34:56 AM AAObserver wrote:
Fair enough. He hasn't done these things, so you are free to either accept it or go to find another job that is more suitable for you.

But because of the union, you will most likely sit around and whine about how poorly you are treated instead of doing your job well.
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You a rare breed.

You are not only teetering as a company stooge to inflame the employees, you also believe there is someone else to blame if I fail to my job and whine?

OK, I will bite.

Explain to us all the details about how the company supervisor, manager, or CEO can "DO NOTHING" if an employee fails to execute his/her duties, and instead sits around and whines about mistreatment?

What is the "peak performance through commitment" program, and who is responsible for the proper execution of that program? Is this the program that states "employees can sit around and whine instead of performing"?

I think you are nothing more than someone trying to fan the flames. Either that or you are the most uninformed observer on the planet.
 

AAObserver

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Apr 18, 2003
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On 4/20/2003 11:25:56 AM RV4 wrote:




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On 4/20/2003 11:21:38 AM AAObserver wrote:


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What would you rather he have done?


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I would have rather him be honest.

I would have rather him not bought TWA.

I would have rather him not bought back AMR stock and depleted cash.

I would have rather him not left Canada.

I would rather see him resign on a volunteer basis before his destructive decisions are beyond repair.

Maybe there is a French Airline in need of a Dove that thinks running an airline only requires compassion instead of intelligence and integrity?

----------------​

Fair enough. He hasn''t done these things, so you are free to either accept it or go to find another job that is more suitable for you.

But because of the union, you will most likely sit around and whine about how poorly you are treated instead of doing your job well.