Ratings of AMR Corp. (CCC/Watch Dev/--) and subsidiary American Airlines Inc. (CCC/Watch Dev/--) remain on CreditWatch with developing implications, where they were placed on March 28, 2003. American in April 2003 secured concessions from its labor groups that the company says will save it about $1.8 billion annually over the next five years. The savings should materially improve American's operating cost structure, narrowing the airline's losses and operating cash flow outlook. The contract terms were revised after a controversy over executive compensation that led to the resignation of former CEO Donald Carty on April 24, 2003. The new terms altered profit sharing, reduced the term of the contracts to five years from six years, and allow for renegotiation after three
