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Thu, May 03, 2012

American Airlines Continues Its Organization Redesign

'Team For The Future' Being Built, Senior Leadership Reduced by 20 Percent

American Airlines, a wholly-owned subsidiary of AMR Corporation, announced Tuesday that the third phase of its organization redesign is underway. This multi-phased reorganization is part of the company's commitment to reduce total costs and put the customers' experience at the heart of American's operation, with all departments supporting that goal. This phase included the elimination of five officer positions. Combined with the previous organizational changes, Tuesday's announcement represents a 20 percent reduction in the company's most senior leadership positions.

"We are on the threshold of an extraordinary opportunity to be America's flag carrier, delivering world-class service to customers around the globe. To achieve this, we must get leaner and more streamlined – with an intense focus on our customers," said Tom Horton, AMR Chairman and Chief Executive Officer. "Our organization redesign purposefully began at the top, and today's changes will further advance the company's restructuring objectives and bring us one step closer to ensuring American has the leanest, most capable and effective leadership team in the industry."

A transition of leadership in American's human resources function from Jeff Brundage to Denise Lynn, who will become Senior Vice President – People, further demonstrates the company's eye on the new American. "Jeff has served in one of the most challenging roles in our company – he's done it ably and with great determination, perspective, and resolve," said Horton. "When Jeff moves on to the next phase of his career, he will take with him the appreciation of our Board and senior leadership team." Horton continued, "Denise brings to her new role broad experience, but most importantly, a deep commitment to the people of American and the success of our company."

A few consolidated or modified positions illustrate elements of the company's transformation, which will bring about new ways of doing things in all functions of the company. For example, the position of Vice President of New York and International, combines two previously separate positions to bring a distinct focus on American's New York franchise, its trans-Atlantic and trans-Pacific businesses, and oneworld alliance partners.

This management redesign demonstrates how American is rethinking every aspect of its business – painting a clear picture of the company's team for the new American, designed to work together differently, with greater efficiently, and with an innovative and relentless focus on the customer.

Tuesday's announcement marks the completion of the third step in the company's organization redesign, which began with the transition to Tom Horton as Chairman and Chief Executive Officer, and continued with the redesign of the company's Leadership Team. This redesign represents management's contribution to the overall restructuring goal in which all employee groups are reducing costs by 20 percent, and will continue throughout the summer.

FMI: www.aa.com

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