Arpey Was At The Top, Too, Says Analyst

The board of directors at AMR Corp., parent to American Airlines, hopes it's found a savior in 44-year old Gerard Arpey. But even though they've agreed to massive wage and benefit cuts, union members and even some aviation experts are concerned that Arpey knew just as much as ousted Chairman and CEO Don Carty did when it came to American's not-so-above-board executive perks.

"My concern with him is that he was right there," said Kevin Mitchell, president of the Business Travel Coalition, which represents corporate travel departments and business travelers, in an interview with The New York Times. "What was his advice and counsel on what should have been done?" Mitchell is, however, happy that American's board moved fast by naming Arpey instead of bringing back former CEO Bob Crandall or hiring an outsider.

Arpey's Resume In Brief

1982 - Awarded MBA degree from the University of Texas.

1982 - Hired by American as financial analyst

1989 - Named Vice President for Finance

2000 - Named Executive Vice President for Flight Operations

2001 - Named President, American Airlines

2003 - Named CEO, American Airlines

Additional Information

Rated Pilot, MEL

Trouble Still Stirring?

The question is, will the airline's three biggest unions - the Allied Pilots Association, The Association of Professional Flight Attendants and the Transport Workers Union - trust Arpey where they were outraged at Carty's "deception"? Arpey, after all, has been nothing short of Carty's right-hand man. He was one of the executives who was in line for a double-your-salary retention bonus in 2005 and is still among the 45 beneficiaries of a bankruptcy-proof pension plan reportedly worth $41 million.

FMI: www.aa.com, www.alliedpilots.org, www.twu.com, www.apfa.org