NEW YORK - On Tuesday, American Airlines chief restructuring officer Beverly Goulet described American's pre-bankruptcy strategy - try to get the best labor deals it could and hope other airlines' costs catch up - as the "limp-along" strategy.
American's senior vice president of human resources, Jeff Brundage, confirmed that term, and threw out another phrase to describe the carrier's unsuccessful approach: "Kick the can."
He was describing how American tried to get new union contracts while addressing a cost disadvantage it saw with other airlines that had gone through bankruptcy in the previous decade.
Testifying in U.S. Bankruptcy Court, Brundage said that former chairman and CEO Gerard Arpey's instructions were clear: get the best deal possible and keep American out of bankruptcy court.
Arpey resigned the evening of Nov. 28 as the board of directors voted to file bankruptcy papers, a filing which happened the next morning.
Arpey was replaced by American's president, Tom Horton. Brundage said Horton's instructions were to do "what is necessary for the success of the company."