American Airlines (AMR Corp)
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- AMR Corp is the second largest air transportation company in the world, serving 250 destinations worldwide.
- American Airlines executives have repeatedly clashed with the company's unions for cutting union wages while maintaining executive compensation packages that union leaders call 'excessive.'
- American Airlines has faced multiple racial discrimination lawsuits in the wake of 9/11 for expelling minorities posing no security risk from their flights.
- In 2008, American Airlines was fined by the FAA for repeated violations regarding aircraft maintenance.
-- Profile Updated 08/09/2011
About American Airlines (AMR Corp)
AMR Corporation, created in 1982 by the restructuring of American Airlines, is the second largest air transportation company in the world. It possesses a fleet of over 900 aircraft, 625 of which are operated by American Airlines, its main subsidiary. In total, the corporation serves around 250 destinations in 40 countries in the Americas, Europe, and Asia. AMR boasted $22.17 billion in sales in 2010, and employs around 78,250 people worldwide.
There are no known affiliates associated with American Airlines (AMR Corp).
Contact American Airlines (AMR Corp)
American Airlines (AMR Corp)
Forth Worth, TX 76155 United States
Several environmental groups, including the Environmental Defense Fund, have charged American Airlines, United and Continental of engaging in green washing. Despite these airlines’ claims of commitment to environmental sustainability, they have been lobbying to reduce the effectiveness of a new European Union law that will hold airlines accountable for all global warming pollution produced on flights to, from and within the EU. The airlines have been lobbying the U.S Congress to declare the EU law invalid.
-- Environmental Defense, 05/11/2011
AMR Corp (AA’s parent corporation) ranks 111 out of 500 US companies in Newsweek’s 2010 Green Rankings. The corporation received a Green Score of 77.81 out of 100 (with 0 being the lowest and 100 being the highest). The Green Score is based on the environmental policies of the company, the overall environmental footprint, and a reputation survey, which is based on a poll done by executive in the company and various “green” experts.
-- Newsweek, 10/18/2010
• AMR Corp is a member of the International Air Transport Association (IATA), a global group of airlines and airports. The IATA has staunchly opposed plans for a carbon emissions trading system in the European Union that could reduce greenhouse gas emissions and mitigate the effects of global climate change. The organization has argued that such a scheme would be prohibitively expensive for the airlines and make it more difficult to retain profits.
-- New York Times, 02/11/2009
• American Airlines' Environmental Responsibility Report states that they cannot recycle waste from international flights because federal regulations require it to be burned. However, according to a report by the Natural Resources Defense Council, USDA regulations allow for recycling on international flights as long as the product never held dairy products, sorting is done during the flight, and the recyclables are stored seperately from containers that held dairy products.
-- Natural Resources Defense Council, 11/01/2006
American Airlines has published their sustainability initiatives and the success of these initiatives on their website. Their goals range from improving fuel efficiency to reducing in-flight and on-ground waste.
-- American Airlines, 07/03/1905
In 2005, American Airlines launched the Fuel Smart program, which aims to increase airline energy efficiency by reducing the amount of jet fuel used. This process both decreases GHG emissions from airplanes and saves American Airlines money. In 2010 the program has an annual fuel savings rate at of 123 million gallons and aims for a savings rate of 134 gallons by 2011.
-- American Airlines, 07/03/1905
According to Greenopia, an environmental group that seeks to create a directory of green businesses, American Airlines comes in last place in a ranking of 10 airlines in regards to their environmental initiatives. AA received a 1 out of 4 “leaf” rating. The rankings are based on six different categories: the availability of carbon offsetting, in-flight recycling, fuel conservation, availability of alternative fuel types, green food options and green building design. Greenopia gathers their information from the airlines’ annual reports.
-- Greenopia, 07/03/1905
In 2010, American Airlines published a report looking into the possibility of greater in-flight recycling. American Airlines states that it will be no easy feat, but they have assigned a Waste Minimization Team to the task. American Airlines recycles 15 million aluminum cans annually. The airline also recycles other airline products such as the wine corks. In addition to recycling waster, the airline has instituted a program where used blankets and pillows left behind on some flights are donated to local homeless shelters. -American Airlines 2010
-- American Airlines, 07/02/1905
Ethics and Governance
• In July 2006, American Airlines, British Airways, United Airlines, and Virgin Atlantic Airways all came under investigation by the U.S. Department of Justice and the British Office of Fair Trade for allegedly violating price-fixing laws. According to agencies from both countries, the airlines conspired to illegally fix the amounts of fuel surcharges applied to flights between the United States and London’s Heathrow airport. Airlines have added fuel surcharges to their flights in order to compensate for the increasing price of jet fuel.
-- New York Times, 07/23/2006
• In 2003, American Airlines CEO Don Carty stepped down after facing harsh criticism over his executive compensation at a time when workers were accepting wage cuts. Union workers agreed to pay cuts in order to help save the company from going bankrupt, and blasted Carty for not disclosing his retention bonus package and executive perks.
-- Guardian, 04/25/2003
Health and Safety
American Airlines was hit with the largest fine in U.S. aviation history, $ 24.2 million, for violations in the maintenance of their fleet, which led to thousands of cancellations in 2008. The violations were in regards to improper repairs and inspections, which kept the flights grounded.
-- Reuters, 08/26/2010
• In 2009, a U.S. District Court threw out a lawsuit brought against American Airlines by Catherine Ray, who was stranded in an airplane on the tarmac for almost ten hours in Austin, Texas. The incident occurred in 2006 when her flight was delayed for weather-related reasons. As the day progressed, the food and water supplies on the plan began to run out and the toilets started to overflow. In her lawsuit, Ray argued that the situation constituted false imprisonment, as passengers were not given the option to get off the plane and had to endure the conditions onboard. The judge who dismissed the lawsuit said that there was insufficient evidence to prove the false imprisonment claim, and that airlines are not legally bound to provide a stress-free environment when such a delay occurs.
-- ABC News, 04/11/2009
• In April 2009, investigators from the National Transportation Safety Board found that American Airlines failed to catch mistakes by maintenance workers who repeatedly failed to properly address a plane’s malfunctioning engine prior to the aircraft catching on fire and making an emergency landing in 2007. Starting ten days before the incident, investigators found that the plane’s left engine repeatedly failed to start, and that maintenance crews replaced a start valve six times. In the end, it turned out that they failed to maintain an air filter that disintegrated and caused a host of other mechanical problems that culminated in the engine fire. According to the NTSB, American’s maintenance oversight system failed to catch the repeated maintenance problems.
-- Associated Press, 04/08/2009
• The Federal Aviation Administration fined American Airlines for $7.1 million in August 2008 for violating drug- and alcohol-testing protocols and flying aircraft that were not properly maintained. According to the FAA, mechanics for American Airlines failed to identify and fix malfunctioning autopilot systems in December 2007, and the company continued to fly aircraft with faulty systems despite warnings from FAA officials. American also allegedly operated over 320 flights between 2005 and 2006 without performing mandatory checks on the emergency floor lighting of its planes. With regards to employee drug testing, the FAA stated that American Airlines did not follow proper protocol by failing to oversee testing of some flight attendants and mechanics, and in some instances the employees knew of the tests in advance.
-- Wall Street Journal, 08/15/2008
Source URL: online.wsj.com/article/SB121874492641541721.html
• In April 2009, American Airlines will deliver 6,000 pairs of shoes and 10,000 school supply kits to Iraq for distribution to the country’s children. As part of Operation Iraqi Children, the airline is flying over 20 tons of supplies and 75 volunteers and entertainers to Iraq. The volunteers will help to distribute soccer balls and school supplies to the children and video games to American Soldiers. It marks the first time that a commercial airline from the United States will deliver goods for distribution in Iraq.
-- Fox Market News, 04/09/2009
• In March 2009, American Airlines partnered with the American Association of People with Disabilities to honor television commercials featuring a positive portrayal of people with disabilities. Beginning in July, companies will be able to submit their advertisements to a panel of judges. The winning advertisement will be given a free spot on the American Airlines in-flight entertainment system, making it visible to tens of thousands of travelers each day.
-- CNN Money, 03/26/2009
• American Airlines has written to Congress in support of the Employment Non-Discrimination Act (ENDA), a bill currently under consideration that offers protections against workplace discrimination based on sexual orientation or gender identity. In a written statement provided in September 2008, the airline states that ENDA is consistent with its ‘longstanding statement of equal opportunity’ and its stance against discrimination.
-- Echelon Magazine, 09/29/2008
Source URL: www.echelonmagazine.com/index.php?id=427
• In 2008, the U.S. Supreme Court refused to hear a racial discrimination case filed against American Airlines by John Cerquiera, a U.S. citizen of Portuguese descent. The incident occurred in 2003, when Cerqueira was removed from a flight at Logan Airport in Boston, along with two other men who were Israeli that he did not know. The lawsuit alleged that Cerqueira was removed from the flight due to his similar appearance and color, and then interrogated for two hours before being denied service by the airline. Cerqueira was originally awarded $400,000 before an appeal by American Airlines was upheld. The airline stated that it had the right to deny any passenger service in order to protect the safety of the aircraft and other customers.
-- Media with Conscience, 01/16/2007
Source URL: mwcnews.net/content/view/11837&Itemid=1
• In 2002, five civil rights lawsuits were filed across the country against American, Continental, Northwest, and United Airlines for alleged racial discrimination against its customers. Filed by the American Civil Liberties Union and the civil rights law firm Relman & Associates, the suits alleged that U.S. citizens of Arab, Guyanese, and Filipino descent were all subjected to rigorous security screening due to their appearance and were ejected from their individual flights after other passengers complained about feeling uncomfortable.
-- American Civil Liberties Union, 06/04/2002
American Airlines received a 100 out of 100 on the Human Rights Campaign’s 2011 Corporate Equality Index. This index was created to rank corporations based on the treatment of their LGBT workers, customers and investors.
-- 100% Recycled Paperboard Alliance, 07/03/1905
American Airlines is currently undergoing negotiations with the Transportation Workers Union (TWU) to reach a new labor contract. As of 7/27/11 a tentative agreement had been reached after both sides had submitted differing proposals. AA claims that they remain committed to find a non-regressive agreement that both sides can agree on. Members of the TWU remain vocal about the fact that AA’s agreements are “concessionary” in nature and are not serious attempts at creating a fair contract.
-- Transportation Workers Union, 07/27/2011
Source URL: http://aa.twu.org/
• In April 2009, American Airlines announced that it would freeze the pay and hiring of nonunion workers in response to declining revenues and travel demand. As a result, the airline’s 19,000 nonunion employees will not receive the annual pay raise of 1.5 percent that has been in place since AMR nearly went bankrupt in 2003. In addition to revenue troubles, American Airlines is also working to refinance $1.1 billion in debt that is due this year and plans to cut its labor capacity by 6.5 percent in anticipation of higher labor costs after the renegotiation of contracts with its unions.
-- Bloomberg News, 04/07/2009
• A new debate has arisen between the Transport Workers Union of America and American Airlines CEO Gerard Arpey. In March 2009, the TWU backed a series of ads inviting users to guess Arpey’s compensation, representing the union’s continued frustration with the airline’s executive compensation. TWU president James Little stated that after the union made concessions in 2003 to help boost revenue, members have not shared in any gains. Union officials estimated that employee concessions have saved AMR $6 billion and kept the airline out of bankruptcy.
-- CNN Money, 04/02/2009
• AMR Corporation received a perfect score for the seventh year in a row on the Human Rights Campaign 2009 Corporate Equality Index which rates large corporations on policies that affect their gay, lesbian, bisexual and transgender employees, consumers and investors. The HRC Corporate Equality Index rates companies on a scale of 0 to 100 percent.
-- Human Rights Campaign, 02/28/2009