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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
_____________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of earliest event
reported: March 31, 2003
AMR CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-8400 75-1825172
(State of Incorporation) ( Commission File Number) (IRS Employer
Identification No.)
4333 Amon Carter Blvd. Fort Worth, Texas 76155
(Address of principal executive offices) (Zip Code)
(817) 963-1234
(Registrant's telephone number)
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Item 5. Other Events
AMR Corporation (AMR) is filing herewith a press release issued on
March 31, 2003 by American Airlines, Inc. (American, a wholly owned
subsidiary of AMR) as Exhibit 99.1 which is included herein. This
press release was issued to announce "ground breaking accords" with
the leadership of the three major unions representing American
Airlines employees.
Item 7. Financial Statements and Exhibits
The following exhibits are included herein:
99.1 Press Release
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
AMR CORPORATION
/s/ Charles D. MarLett
Charles D. MarLett
Corporate Secretary
Dated: April 1, 2003
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EXHIBIT INDEX
Exhibit Description
99.1 Press Release
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Exhibit 99.1
Contact: Corporate Communications
Fort Worth, Texas
817-967-1577
corp.comm@aa.com
FOR RELEASE: Monday, March 31, 2003
AMR CHIEF DON CARTY PRAISES CONSENSUAL AGREEMENTS WITH
EMPLOYEES TO CUT COSTS
FORT WORTH, Texas - AMR Chairman Don Carty today heralded
"ground breaking accords" with the leadership of the three major
unions representing American Airlines employees as he announced
changes in pay plans for management and non-union employees to
achieve $1.8 billion in employee cost savings.
"Today's unprecedented action by the unions, our employees and
the company represent another first at American and in our
industry," Carty said.
"By taking these decisive actions, the union leadership and
our employees have demonstrated an unwavering commitment to the
future of the company, and have enabled us to avoid an immediate
filing with the bankruptcy court. The speed with which these
comprehensive and complex agreements was reached is a testament to
our people."
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American Gets Consensual Deals with Unions
March 31, 2003
Page 2
The accords with the three unions are far reaching and touch
on nearly every aspect of pay, benefits and work rules.
As part of this effort, the company will also announce changes
to pay, benefits and work rules for all non-union employees,
including agents, representatives, planners, support staff and
management.
Labor leaders worked with the company to determine how best to
meet their targets, while over 10,000 non-union employees actively
participated through surveys, focus groups and InterAction sessions
to help determine theirs.
The cost savings will be divided by work group as follows:
- Pilots: $660 million
- Flight attendants: $340 million
- TWU Represented employees: $620 million
- Agents, representatives and planners: $80 million
- Management and support staff: $100 million
In addition, the company announced that Carty will take a 33
percent base pay cut; decline a bonus for the third consecutive
year; and will ask the AMR Board of Directors to make further
changes that significantly reduce the value of his and his senior
officers' compensation packages.
In announcing the agreements, Carty also reported that
American employees will have access to a new stock option and
profit sharing program.
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American Gets Consensual Deals with Unions
March 31, 2003
Page 3
Carty cautioned, however, that while these agreements are a
"critical step in our resolute march toward survival," he said that
the agreements must still be ratified by the unions' memberships
and the company must, among other factors, secure "meaningful
concessions" from its vendors, lessors and suppliers. The company,
in communications to its employees, stressed that "the financial
condition of American is weak and its prospects remain uncertain.
Particularly given the impact of the continuing war in Iraq and the
different general economic conditions that are negatively impacting
the industry, the days ahead will be difficult and the success of
our joint efforts is not yet assured."
"I would not ask for these sacrifices if I weren't convinced
that they were absolutely necessary to achieve our restructuring
goals," Carty said. He committed to building upon the "culture of
cooperation and collaboration that produced today's agreements and
that is essential to our future. My commitment to fostering this
new culture will not change," he said. "Our employees are key to
our success."
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American Gets Consensual Deals with Unions
March 31, 2003
Page 4
Statements in this report contain various forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended, which represent the Company's expectations or
beliefs concerning future events. When used in this document and
in documents incorporated herein by reference, the words "expects,"
"plans," "anticipates," "believes," and similar expressions are
intended to identify forward-looking statements. Other forward-
looking statements include statements which do not relate solely to
historical facts, such as, without limitation, statements which
discuss the possible future effects of current known trends or
uncertainties, or which indicate that the future effects of known
trends or uncertainties cannot be predicted, guaranteed or assured.
All forward-looking statements in this report are based upon
information available to the Company on the date of this report.
The Company undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise. Forward-looking
statements are subject to a number of factors that could cause
actual results to differ materially from our expectations.
Additional information concerning these and other factors is
contained in the Company's Securities and Exchange Commission
filings, including but not limited to the Form 10-K for the year
ended Dec. 31, 2001[2002].
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Current AMR Corp. press releases can be found on the Internet.
The address is http://www.amrcorp.com