Power and Governance at American Airlines
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The paper looks at the company's leadership, the power structure at American Airlines and losses to the airline industry and to American Airlines starting in 2001. The paper describes how key executives and other actors have used power to achieve often conflicting goals and objectives, with a close look at the role of current CEO, Gerard J. Arpey.
From the Paper:"American Airlines (2006) is incorporated under the laws of the stat of Delaware and has a 13-member Board of Directors. The current chairman, president, and chief executive officer (CEO) of both AMR Corporation and American Airlines is Gerard J. Arpey. Arpey replaced former CEO Donald J. Carty, who himself replaced Robert L. Crandall (Zellner, 2003). The transition from the Carty regime to that of Arpey was brought about by what Zellner (2003) calls a "megablunder" committed by Carty. In 2003, American Airlines had negotiated a deal with the three major unions to which its pilots, mechanics, and other personnel belong. Carty had called for shared sacrifice which would result in $1.62 billion in annual concessions on the part of American's unionized employees. At the same time that the unions were agreeing to accept layoffs and salary cuts, Carty announced that a number of executives would receive bonuses and pension protection. As Zellner (2003) reported, Carty's mistake created hostility and new tensions among unionized employees and ultimately resulted in his ouster.
"With Arpey at the helm today, this problem has not disappeared. As reported by Loren Brown (2006), leaders of three unions at American Airlines are questioning stock-based bonuses that executives at the carrier are due to receive in April 2006."
Cite this Term Paper:
Power and Governance at American Airlines (2006, December 01) Retrieved October 19, 2019, from https://www.academon.com/term-paper/power-and-governance-at-american-airlines-69498/
"Power and Governance at American Airlines" 01 December 2006. Web. 19 October. 2019. <https://www.academon.com/term-paper/power-and-governance-at-american-airlines-69498/>