Carty quits American Airlines

By Michael Clarke

TROUBLED American Airlines chief executive Don Carty has resigned following criticism of his handling of the executive retention bonus debacle.

Carty angered unions by not disclosing special retention bonuses and pension package for the airline's top executive during wage concession negotiations.

Carty was forced to humbly apologise over the incident, which came just before American reported a $1 billion first quarter loss.

The unions are still threatening to revote over whether they accept the $1.8 billion concessions, vital to save American from filing for Chapter 11 bankruptcy protection.

Chief operating officer Gerard Arpey has stepped into Carty's shoes as the carrier battles for its future.

Arpey said: "I will continue to lead by example. Actions, of course, speak louder than words. And you can expect me to ensure my actions are consistent with the high standards we set for all employees at American Airlines.”

Carty has spent more than 20 years at American, stepping up to chief executive and chairman in 1998.