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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
_____________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of earliest event
reported: April 16, 2003
AMR CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-8400 75-1825172
(State of Incorporation) ( Commission File Number) (IRS Employer
Identification No.)
4333 Amon Carter Blvd. Fort Worth, Texas 76155
(Address of principal executive offices) (Zip Code)
(817) 963-1234
(Registrant's telephone number)
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Item 5. Other Events
AMR Corporation (AMR) is filing herewith a press release issued on
April 16, 2003 as Exhibit 99.1 which is included herein. This press
release was issued to announce that American Airlines' employee
groups rallied to ratify ground-breaking agreements to achieve $1.8
billion in annual employee cost savings.
Item 7. Financial Statements and Exhibits
The following exhibits are included herein:
99.1 Press Release
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
AMR CORPORATION
/s/ Charles D. MarLett
Charles D. MarLett
Corporate Secretary
Dated: April 17, 2003
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EXHIBIT INDEX
Exhibit Description
99.1 Press Release
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Exhibit 99.1
Contact: Corporate Communications
Fort Worth, Texas
817-967-1577
corp.comm@aa.com
FOR RELEASE: Wednesday, April 16, 2003
AMR CHAIRMAN DON CARTY COMMENDS EMPLOYEES FOR RATIFYING CONSENSUAL
AGREEMENTS TO CUT COSTS
FORT WORTH, Texas - AMR Chairman Don Carty today expressed
his gratitude to the employees of American Airlines and their union
leadership for ratifying ground-breaking agreements to achieve $1.8
billion in annual employee cost savings.
American's unionized employee groups rallied to ratify
consensual agreements reached just two weeks ago with the Allied
Pilots Association, the Association of Professional Flight
Attendants and the Transport Workers Union.
"This development is unprecedented in the history of the U.S.
airline industry," Carty said, heralding ratification votes to
approve the restructured contracts, "and I am enormously proud of
our employees."
"These votes clearly demonstrate our employees' dedication and
commitment to creating a secure future for American Airlines and
its people," he added.
Carty also thanked union leaders for agreeing to accelerate
the ratification process from the standard 30 days to two weeks,
and credited all three unions for working together to overcome last-
minute issues with the APFA's balloting process and urging the
extension of voting for flight attendants.
"This has been a race against the clock," Carty said, "My
thanks go to the union leadership and to all our employees who
recognized the urgency of our financial crisis and rose to meet the
challenge."
Commenting on the fact that the company had made millions of
dollars in loan repayments to allow the extension, Carty said
American's employees had proved that the risk was worth taking.
"I'll bank on the employees of American Airlines any day,"
Carty said. "I believed it was important to make an investment in
the future of this company, just as our employees have made a
significant investment themselves. Today I have even more
confidence that, by continuing to work together, we can make our
investment pay off."
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Carty and AMR President and COO Gerard Arpey said ratification
of the labor agreements is a significant step toward helping the
company in its efforts to restructure costs on its own. In
addition, the company continues its work to secure accommodations
from its lenders and suppliers.
"Today was an important step in our ability to transition to
the 21st century as a new airline in a new era. With the help of
our employees " our greatest asset " we will take on the
competition, and work together to succeed," Carty and Arpey said.
But the company cautioned that even with ratification of the
agreements, American's financial condition is weak and its
prospects remain uncertain. Carty warned that the company is not
yet "out of the woods," and "that given the hostile financial
and business environment we find ourselves in and its inherent
risks the success of our efforts is not assured."
The accords with the three unions are far reaching and touch
on nearly every aspect of pay, benefits and work rules.
The company has also announced changes to pay, benefits and
work rules for all non-union employees, including agents,
representatives, planners, support staff and management.
The cost savings were divided by work group as follows:
- Pilots: $660 million
- Flight attendants: $340 million
- TWU Represented employees: $620 million
- Agents, representatives and planners: $80 million
- Management and support staff: $100 million
Carty, who said the restructuring effort is based on a model
of "shared sacrifice," took a 33 percent base pay cut, declined a
bonus for the third consecutive year, and participated in other
changes that significantly reduced the value of compensation for
senior officers.
"These are difficult times for the company and our people,"
Carty said, "Rest assured that I would not ask for these sacrifices
if I weren't convinced that they were absolutely necessary. The
company recently announced a new profit sharing and stock option
program that will allow employees to benefit from the company's
eventual recovery.
"Working together, we have made hard choices, but they are
choices that are ultimately in the best interest of American
Airlines and its employees," Carty said.
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Statements in this report contain various forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, which represent the Company's expectations or
beliefs concerning future events. When used in this document and
in documents incorporated herein by reference, the words "expects,"
"plans," "anticipates," "believes," and similar expressions are
intended to identify forward-looking statements. Other forward-
looking statements include statements which do not relate solely to
historical facts, such as, without limitation, statements which
discuss the possible future effects of current known trends or
uncertainties, or which indicate that the future effects of known
trends or uncertainties cannot be predicted, guaranteed or assured.
All forward-looking statements in this report are based upon
information available to the Company on the date of this report.
The Company undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise. Forward-looking
statements are subject to a number of factors that could cause
actual results to differ materially from our expectations,
including the uncertain financial and business environment for the
Company even with the ratification of the labor agreements.
Additional information concerning these and other factors, is
contained in the Company's Securities and Exchange Commission
filings, including but not limited to the Form 10-K for the year
ended Dec. 31, 2002.