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American Brings Former CFO Back

Posted on: Thursday, 30 March 2006, 06:00 CST

By Trebor Banstetter, Fort Worth Star-Telegram, Texas

Mar. 30--FORT WORTH -- An old hand is returning to American Airlines to take over the company's finances and planning, a crucial position as the carrier continues to struggle to return to profitability. Thomas Horton left as chief financial officer at AMR Corp., American's parent, in 2002 to take a similar post at AT&T. American announced Wednesday that he will return to his old job heading the finance department and will oversee the company's planning. Gerard Arpey, AMR's chief executive, said in a statement that he was "thrilled to welcome Tom Horton back to the leadership team." Horton will be the third chief financial officer appointed to the job since he left. His replacement, Jeffrey Campbell, quit in 2004 to work for McKesson Corp., a healthcare and technology company. Campbell was replaced by James Beer, who left earlier year for Symantec Corp., a software company. "Tom really understands the business in great detail," said Al Becker, an American spokesman. Becker said he hoped that Horton's return will add some stability to the company's finance department. "It can be difficult for a company in American's position to sometimes re- tain extremely talented individuals," he said. "So we certainly hope Tom will have a long and productive time here." Horton, who was a senior vice president when he left, returns as an executive vice president. He will be one of the company's highest-level officers. "I think American's very lucky to get him back," said Ray Neidl, and airline analyst with Calyon Securities in New York. "He knows the industry, knows the company, so he has all the advantages of hiring someone from within, but he's also been outside the industry and has additional experience now." At AT&T, Horton was credited for cutting the company's debt by more than two-thirds. Arpey has said that reducing American's debt is a crucial element of the company's turnaround plan. AMR has more than $20 billion in debt. Horton also was involved in structuring AT&T's merger with SBC Communications. He left in early January, after the merger was approved, one of several executives who left the company after it was purchased by San Antonio-based SBC. American lost $861 million last year, its fifth consecutive annual loss. American, like many other airlines, has suffered from a "brain drain" in recent years, with several top executives leaving. In addition to Campbell and Beer, the airline lost Sue Oliver, senior vice president of human resources, to Wal-Mart Stores; Tim Doke, vice president of corporate communications, who left to take a job at Dell; and Ann McNamara, general counsel, and Michael Gunn, who oversaw marketing and planning, to retirement. The airline also announced other executive changes. Craig Kreeger was named senior vice president of international service, and David Cush was tapped as senior vice president of global sales. The two will take over the responsibilities now held by Peter Dolara, American's senior vice president in Miami, the Caribbean and Latin America. Dolara is retiring. Shares of AMR Corp. (ticker: AMR) rose $1.01 in trading Wednesday, a 3.9 percent jump, to close at $27.10 per share.

IN THE KNOW Executive shuffle In addition to Tom Horton's return, several other top officers at American Airlines were promoted Wednesday. Executive New job Tom Horton Executive vice president, finance and planning Craig Kreeger Senior vice president, international David Cush Senior vice president, global sales Douglas Herring President, American Beacon Advisors Isabella Goren Senior vice president, customer relationship marketing and reservations Brian McMenamy Vice president and controller SOURCE: American Airlines

------------ Trebor Banstetter, (817) 390-7064 tbanstetter@star-telegram.com

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Copyright (c) 2006, Fort Worth Star-Telegram, Texas

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Source: Fort Worth Star-Telegram (Fort Worth, Texas)

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