Chairman and CEO, AMR Corporation Gerard Arpey Spoke At Global Transportation Conference

American Airlines Prepares For Changing Economy

June 15, 2009, Last Thursday Chairman and CEO Gerard Arpey of AMR Corp. parent company to American Airlines spoke at the Global Transportation Conference. Mr. Arpey indicated the company would take appropriate steps in this difficult economy to insure the continued success of American Airlines.   

- American Airlines would reduce seating capacity in its aircraft by 7.5 (The number of seats in an aircraft determines the number of flight attendants that must be onboard as required by law.  With fewer seats in its aircraft means the company has the ability to layoff flight attendants).  

- American with strengthen its global market share by building a presence in China and India and by expanding its reach into new markets, such as Barcelona and Milan.

- Upgrades to Admirals Clubs in Boston, Washington Dulles, and London Heathrow.  

- American Airlines to replacement of its McDonnell Douglas narrow body MD-80 fleet and purchase eight Boeing 737-800s planes in a bid for fuel efficiency. The Boeing 737-800s, are 35 percent more fuel efficient per seat than the MD-80s 

- American will make modifications to its 767-200 aircraft, a reconfiguration of 757s for international use. American will take delivery of eight additional 737s, with a modified delivery schedule that includes 76 737s in 2009 and 2010, including planes it has received, and eight 737s in 2011.

The reaction from Wall Street regarding Mr. Arpey address to the Global Transportation Conference was rather positive. However, on this same day American Airlines reported to it employees that the company would layoff 1,200 flight attendant positions nationwide, along with 300 airport services staff members and 50 cargo service positions. Flight attendant cuts will be made on a basis of seniority. American said voluntary exit packages will be offered to employees who may want to retire early. 

In a letter to American employees released Thursday, the company’s Senior Vice President of Human Resources Jeff Brundage stated, “These reductions come as a result of our efforts to 'right size' our operation and respond to the weaker demand for travel by reducing our schedule, including seasonal changes, and addressing lower-than-expected attrition.”