Read us | Listen to us | Watch us | Join Live Events | Turn Off Ads | Live |

Click on your language to translate this article:

Afrikaans Afrikaans Albanian Albanian Amharic Amharic Arabic Arabic Armenian Armenian Azerbaijani Azerbaijani Basque Basque Belarusian Belarusian Bengali Bengali Bosnian Bosnian Bulgarian Bulgarian Catalan Catalan Cebuano Cebuano Chichewa Chichewa Chinese (Simplified) Chinese (Simplified) Chinese (Traditional) Chinese (Traditional) Corsican Corsican Croatian Croatian Czech Czech Danish Danish Dutch Dutch English English Esperanto Esperanto Estonian Estonian Filipino Filipino Finnish Finnish French French Frisian Frisian Galician Galician Georgian Georgian German German Greek Greek Gujarati Gujarati Haitian Creole Haitian Creole Hausa Hausa Hawaiian Hawaiian Hebrew Hebrew Hindi Hindi Hmong Hmong Hungarian Hungarian Icelandic Icelandic Igbo Igbo Indonesian Indonesian Irish Irish Italian Italian Japanese Japanese Javanese Javanese Kannada Kannada Kazakh Kazakh Khmer Khmer Korean Korean Kurdish (Kurmanji) Kurdish (Kurmanji) Kyrgyz Kyrgyz Lao Lao Latin Latin Latvian Latvian Lithuanian Lithuanian Luxembourgish Luxembourgish Macedonian Macedonian Malagasy Malagasy Malay Malay Malayalam Malayalam Maltese Maltese Maori Maori Marathi Marathi Mongolian Mongolian Myanmar (Burmese) Myanmar (Burmese) Nepali Nepali Norwegian Norwegian Pashto Pashto Persian Persian Polish Polish Portuguese Portuguese Punjabi Punjabi Romanian Romanian Russian Russian Samoan Samoan Scottish Gaelic Scottish Gaelic Serbian Serbian Sesotho Sesotho Shona Shona Sindhi Sindhi Sinhala Sinhala Slovak Slovak Slovenian Slovenian Somali Somali Spanish Spanish Sudanese Sudanese Swahili Swahili Swedish Swedish Tajik Tajik Tamil Tamil Telugu Telugu Thai Thai Turkish Turkish Ukrainian Ukrainian Urdu Urdu Uzbek Uzbek Vietnamese Vietnamese Welsh Welsh Xhosa Xhosa Yiddish Yiddish Yoruba Yoruba Zulu Zulu

American Airlines doles out bonuses despite $375 million loss

Written by editor

American Airlines is bleeding money, and its unions say they are subsisting on peanuts in coach while corporate executives sip champagne in first class.

American Airlines is bleeding money, and its unions say they are subsisting on peanuts in coach while corporate executives sip champagne in first class.

On Wednesday, the AMR Corporation, American’s parent company, announced it lost $375 million in the first quarter of 2009.

Meanwhile, American Airlines executives will receive $6.5 million in stock-based bonuses this year, with bonuses doled out over the past four years totaling $300 million, according to the Allied Pilots Association. The union based the information on AMR’s filings on Wednesday with the Securities and Exchange Commission.

“A bonus is supposed to be paid for a job well done,” says union spokesman Captain Sam Mayer in an interview with the Huffington Post. “You’ve got a company bleeding money, consistently trailing just about every other carrier — where’s the performance?”

AMR is mired in negotiations with all three of its unions, and while the $6.5 million is not huge — smaller than previous bonuses and doled out to over 900 people — the unions are seizing on it to cast company executives as feeding at the trough while workers’ wages languish.

In a statement to the Huffington Post, American Airlines spokeswoman Missy Latham says the company hasn’t paid a cash bonus since 2001, and that it’s payouts are small.

– In addition to salary and short-term incentive pay, we compensate our leadership with long-term incentives, such as options, deferred shares and performance shares, which take three to five years to vest and their value to the individual is solely based on the company’s performance. Our executive pay is designed to offer median pay when compared to positions in and outside the airline industry.

The value of any shares granted under the Performance Share Plan won’t be known until they vest, but it’s expected this year’s plan will pay out significantly below the value targeted by the AMR Board in 2006. The declined value of these shares demonstrates the downside of at-risk compensation and serves as an illustration of our compensation philosophy that tightly links pay to company performance and shareholder interest. –

Several hundred members of the Transport Workers Union — mechanics, bag handlers, folks who clean planes — protested Tuesday outside the company’s corporate headquarters in Fort Worth, Texas. They brought giant novelty bonus checks made out to company executives, then canceled the checks by tearing them up, the Star-Telegram reported. The union also went viral, creating an online game in which players match checks to corporate executives. A cartoon of Gerard Arpey walks off with the biggest moneybags at the end.