Recently, American Airlines filed for bankruptcy protection and its CEO, Gerald J. Arpey, decided to call it quit even the board wants him to stay Why?
A recent
op-ed article in the New York Times praised Arpey for his decision.
Arpey argued that he cannot ignore the implications of bankruptcy filing and lead American Airlines because ... "
out of a belief that bankruptcy was morally wrong, and that he could not, in good conscience, lead an organization that followed this familiar path".
The article goes on to explain the human implications of bankruptcy filing:
"Since Congress deregulated the industry, it has been common for airlines to claim bankruptcy and regroup under the temporary shelter provided by Chapter 11. Continental filed in 1983 and 1990, United in 2002, US Airways in 2002 and 2004, and Delta and Northwest in 2005. In each situation, bankruptcy gave the airlines the chance to cancel their debt, get rid of responsibility for employee pensions and renegotiate more favorable contracts with labor unions."
