Former American Airlines chief executive Gerard Arpey will join former Continental Airlines CEO Larry Kellner's Emerald Creek Group as a partner, following American's filing for Chapter 11 bankruptcy protection today.
Arpey, who is being succeeded at American by Thomas Horton, will lead Emerald with Kellner in his new position, which takes effect 1 December.
Based in Houston, Emerald is a private equity firm focusing on real estate.
"We are very fortunate to have an executive of Gerard's caliber joining our team," said Kellner. "Few executives, in any industry, have confronted as many complex, difficult issues as Gerard has - and fewer still have led their companies through tough times with as much skill, character and grace."
Arpey, who said he has worked closely with Kellner through several airline industry initiatives, added: "We are very much aligned when it comes to our values and the way we approach life and business. I look forward to what we will accomplish together."
Arpey became CEO at American in 2003, and first began his career at the airline in 1982 as a financial analyst.
In a letter to employees following American's Chapter 11 filing, Arpey said he was requested by the airline's board to continue serving as chairman and CEO, but "concluded that my remaining in those roles would not be best for the company".
"In my view, executing the board's plan will require not only a reevaluation of every aspect of our business, but also the leadership of a new chairman and CEO who will bring restructuring experience and a different perspective to the process. That is why I informed the board of my decision to retire from the company," he added.
He expressed confidence in the airline's restructuring, saying: "I have no doubt that with restructured costs and more degrees of freedom to run the business, American Airlines will emerge from bankruptcy protection as a more efficient, more competitive, and stronger company."
Source: Air Transport Intelligence news
