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CNN Live At Daybreak
American Airlines Survival Strategy
Aired May 22, 2003 - 06:45 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Well time to check on this morning's business buzz. American Airlines has a new turnaround plan which will be easier on your wallet but certainly not your legs.
To explain that, let's go live to New York and Susan Lisovicz.
Explain -- Susan.
SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Unfortunately. Well you remember those commercials, Carol, where you know American Airlines was touting the extra legroom that you'd have in economy class? You're not going to see those commercials anytime soon, because American Airline -- Airlines will be adding seats on a quarter of its planes, all part of its turnaround plan to try to avoid Chapter 11 bankruptcy protection.
Also, Edward Brennan, American's new chairman, says he will not take any salary or stock options this year. Brennan recently replaced Don Carty, who remember was widely criticized for the huge pay and bonus package he and other executives received at the same time the rank and file were being pressured to take big pay cuts.
The world's largest airline has already secured about $2 billion in cost savings from employee pay and benefits. The airline narrowly averted filing for bankruptcy three times this year, but a lot of industry observers, Carol, say it's not out of the woods yet. The new CEO says he, however, is encouraged by June's bookings. We'll see.
Back to you.
COSTELLO: Yes, we'll see what happens. Thank you, Susan Lisovicz.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired May 22, 2003 - 06:45 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Well time to check on this morning's business buzz. American Airlines has a new turnaround plan which will be easier on your wallet but certainly not your legs.
To explain that, let's go live to New York and Susan Lisovicz.
Explain -- Susan.
SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Unfortunately. Well you remember those commercials, Carol, where you know American Airlines was touting the extra legroom that you'd have in economy class? You're not going to see those commercials anytime soon, because American Airline -- Airlines will be adding seats on a quarter of its planes, all part of its turnaround plan to try to avoid Chapter 11 bankruptcy protection.
Also, Edward Brennan, American's new chairman, says he will not take any salary or stock options this year. Brennan recently replaced Don Carty, who remember was widely criticized for the huge pay and bonus package he and other executives received at the same time the rank and file were being pressured to take big pay cuts.
The world's largest airline has already secured about $2 billion in cost savings from employee pay and benefits. The airline narrowly averted filing for bankruptcy three times this year, but a lot of industry observers, Carol, say it's not out of the woods yet. The new CEO says he, however, is encouraged by June's bookings. We'll see.
Back to you.
COSTELLO: Yes, we'll see what happens. Thank you, Susan Lisovicz.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
