Airline chief asks employees to make sacrifices

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Airline chief asks employees to make sacrifices

TULSA, Okla. (AP) =97 American Airlines faces unprecedented challenges that=
=20
threaten its survival and employees will have to make sacrifices to make it=
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a leaner company, American Chairman Donald J. Carty said. Speaking to 2,000=
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of American's Tulsa employees Tuesday, Carty said the company must cut $4=20
billion in expenses a year to survive. He spoke last week to employees in=20
Dallas, Miami, Fla., and Chicago. Pilots, flight attendants and mechanics=20
have been asked for $1.8 billion in wage and benefit reductions. "Unlike=20
some of our competitors, the question is not whether this company is going=
=20
to survive," Carty said. "There's no doubt in my mind that one way or=20
another, we're going to make it. I wouldn't have come to you and asked our=
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employees to make the sacrifices you're being asked to make if I weren't=20
absolutely convinced that our plan will work and will lead us where we want=
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and need our company to be =97 not just when the storm clouds have passed,=
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but five years, 10 years, a generation from now, because American Airlines=
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has always been in it for the long haul."

The company has suffered from a weak economy that has reduced air travel,=20
the costs and fears of terrorism, the emergence of low-cost competitors,=20
rising fuel prices, technological changes, the impact of the Internet and=20
the war in Iraq. "Together we're creating a better, stronger company and a=
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sleeker, smarter airline," Carty said. "We're changing what we fly, how we=
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fly, and how we do business. Never have we faced a challenge this big =97=
 and=20
never have we attempted change on this scale."
Competitors United Airlines, US Air and Hawaiian Airlines are in bankruptcy=
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and several others, including American are on the brink. Carty said the=20
company has trimmed its fleet, reducing the variety of planes it flies=20
while simplifying maintenance and pilot training. It has adopted new ways=20
of distributing reservations and tickets and has trimmed its work force in=
=20
all areas. "Going forward, we will build on American's strengths," Carty=20
said. "We will have a global network. We will have hub and spoke. We will=20
serve major cities and smaller markets, with big jets and small planes. We=
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will offer premier service. And in doing these things, we'll be creating a=
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new model =97 one that allows us to take the fight to the low-cost=
 carriers."=20
He said the company will continue to need its maintenance bases in Tulsa,=20
Fort Worth and Kansas City.


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