This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Horton Shares Credit with Arpey for Successful American Bankruptcy

DALLAS ( TheStreet) -- As he prepares to conclude a two-year-run as the last CEO of pre-merger American (AAMRQ.PK) with strong second-quarter results, Tom Horton is crediting predecessor Gerard Arpey with building the base for a successful restructuring.

"Gerard deserves more recognition for getting the company on course for a successful future," Horton said in an interview on Thursday, in which he also credited American's 73,000 employees. "Much credit goes to him. I saw him two nights ago. He is pleased to see the new American taking off."

When American filed for bankruptcy protection in November 2011, Arpey retired despite being asked by the board to continue. The American bankruptcy is considered to be among the most successful in the history of the airline industry, where bankruptcies have been frequent.

Horton was asked Thursday whether he envisioned where American would be today when he returned to the carrier as Chief Financial Officer in April 2006. At a news conference then, he said he had been bonefishing in the Bahamas when Arpey asked him to return.

"I didn't foresee a restructuring, of course," Horton said. "I did see a lot of hard work to get American Airlines back on top. Gerard and I thought that American Airlines' place in the industry was on top. I would credit Gerard with doing much of that (work) -- building alliances, making OneWorld what it is today, doing much of the work around cost structure and network, and launching the boldest modernization in our company's history. That set the course for what the new American Airlines would be. That was all done under my predecessor.

"The final piece was getting our cost and capital structure in line," he said. "That's what the restructuring was all about." In its second-quarter results reported Thursday, American said that cost per available seat mile excluding fuel and special items decreased by 5.8%, driven by restructuring efforts.

American likely closed out its run in bankruptcy with one of the best second quarters in its history, reporting a net profit excluding items of $357 million. A planned merger with US Airways (LCC) is expected to close in the current quarter.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LCC $0.00 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs