The new American Airlines Group is now the largest air carrier in the world. Doug Parker, its CEO just got a raise in the amount of $150,000 bringing his salary to $700,000 before compensation. American Airlines and US Airways combined to form the new American Airlines Group in 2013.
Doug Parker, the former CEO of US Airways, did receive in December a substantial stock bonus worth approximately $18.9 million if the goals set are met in 2016.
The employees of American Airlines were told via letter from the former US Airways CEO, Doug Parker, who made a $550,000 salary there, that he would be paid less than United Airlines and Delta Airlines. This keeps in line with the union employees at his new company, American Airlines Group, who are paid less than the employees at the other two doing the same job. He told his employees at his new American Airlines, his compensation will be 20 percent less than the two competitors mentioned and most of it based upon performance.
Parker went on to say the stock payment compensation will be based upon the success of American Airlines.
In 2012, compensation mostly from stock paid to CEO’s of United and Delta were almost twice the amount that Parker received from US Airways. The board from American Airlines gave Tom Horton, the former CEO from American, who restructured the airline through bankruptcy, a severance payout of $17 million and a small sum of $400,000 as a chairman’s salary.
American Airlines Group, which is the largest worldwide air carrier post US Airways merger with American Airlines in 2013, did report a loss of $2 billion amidst the restructuring. Profits were reported for the new American Airlines at 59 cents a share or $436 million. The total revenue came to $9.98 billion. American Airlines Group was formed in December after bankruptcy filings and the merger with US Airways. The two year merger and restructuring gave unions and holders a large amount of equity, which can be rare in bankruptcy.
The post-merger of American Airlines has settled on a reservation system. It will use Sabre, the technology used previously by the larger of the two. This is the bigger system and will take up to two years to combine all reservations. President of Sabre Solutions, Hugh Jones says he has a team of experts which will allow delivery to the new system ensuring a personalized experience in travel.
Doug Parker, the new CEO of the new American Airlines says, “I am honored to be given that responsibility, and consider it a privilege to work with you at the new American. I will do everything I can to live up to the trust and confidence you have placed in me.”
The disclosure came this past Monday, January 27th, 2014 after 4th quarter profits from 2013 were posted and the new CEO posted a letter to employees of his transparency in the new company, American Airlines Group.
Combined the former American Airlines and US Airways earned $1.95 billion in 2013. This recent bankruptcy and merger through restructuring at the end of 2013, now makes American Airlines Group the largest worldwide air carrier.
By Kim Troike