AA CEO Expects 2Q Profit (With US Air money...)

American Airlines parent AMR, which plans to merge with US Airways, said it expected to report a second-quarter profit for the first time since 2007.
American Airlines, the third-largest US carrier by traffic, has renegotiated aircraft leases, cut management and support staff and frozen pension plans to lower costs since filing for Chapter 11 protection in November 2011.
"We expect to report a strong, profitable second quarter - our first since 2007", chief executive Tom Horton said on Thursday in a letter addressed to employees and filed with the US Securities and Exchange Commission.

...which entitles Tom Horton to his $20 million golden parachute and confirmed First Class travel for life. :rolleyes:

I think the court reduced the cute to ONLY $9,000,000 (plus whatever he gets for retirement/board fees and bennies)

The free lifetime first class flight benefits are for Tom Horton and his wife - worth approximately one million.:rolleyes:


Severance package breakdown
$9,937,500 in cash


$9,937,500 in shares of the new company’s common stock


Lifetime flight and other travel benefits with new company (including spousal and survivor benefits)


For two years following the closing will be provided with off-site office and administrative support


Legal fees incurred in connection with the agreement to be reimbursed by American.

Tom Horton will serve as chairman of the new company (US Airways CEO Doug Parker will be CEO) until either one year after the closing of the merger or the day prior to the first annual meeting of stockholders, wherever comes first (the stockholder meeting cannot be held prior to May 1, 2014


Mr. Horton took over as CEO of American the day before the company filed for bankruptcy protection November 2011. If the time line for the merger goes as planned, Mr. Horton will have been CEO of AA for a little over 2 years.

2 years of work for a lifetime of flight benefits, probably confirmed in F at that. You can bet I'd take that! Then again, a lifetime AAirpass (back when they offered that) was $250,000 - about $623,000 in today's dollars. That would be a drop in the bucket compared to what's in that package...

Edit: forgot this link to show what I'm talking about: http://en.wikipedia.org/wiki/AAirpass

the third-largest US carrier by traffic,]

Which are the first 2 largest carriers ?

World's largest airlines - Wikipedia, the free encyclopedia - I see 4th on this list. Looks like airlines above are UA, DL, and WN.

Quote:

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Originally Posted by spongebue

World's largest airlines - Wikipedia, the free encyclopedia - I see 4th on this list. Looks like airlines above are UA, DL, and WN.

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Thanks for the info.Yes it does look at 4Th on the list with number one being DL 2) UA 3) SW 4) AA.