Complaining about the airline industry’s chief executives for the generous compensation they get is an annual “blood sport,” and it’s no different this year with pretty much the same prey.

Delta Air Lines CEO Richard H. Anderson leads the group with $8.04 million in total compensation. But the one that’s taking the most flak is American Airlines CEO Gerard J. Arpey, who is getting $5.95 million, at least on paper. More on that down below, but first—here’s a table comparing the chief executive pay packets to the financial performance of the major U.S. airlines.

2010 executive pay for airline carriers

It’s not hard to see why Gerard Arpey is taking heat, and the Association of Professional Flight Attendants (APFA) didn’t lose much time in charging AMR’s top management with “moral contempt for enriching themselves at the expense of employees and shareholders.”

The flight attendants accuse AMR management of:

1. Adopting an executive pay formula that generates more than $25 million in personal profits for every $1 billion in corporate losses.

2. Not being capable of restoring the airline to profitability.

3. Making false promises to contribute while devising real plans to plunder.

Actually, Arpey didn’t exactly take home the listed $5.95 million, and neither did other AMR executives get what the SEC disclosures say they got. It’s a complicated “performance share plan” based on stock grants tied to the future value of the company’s stock, and the end result is that Gerard Arpey really got around $1.1 million in cash and vested stock.

Maybe AMR is just not so good at handling this issue. US Airways CEO Doug Parker, for example, went out of his way to explain his $2.8 million compensation.

In a message to employees, Parker said:

When you add everything up, it comes to about $2.8 million. Of that, $1.7 million was paid in cash and other benefits and the remainder was stock awards that only will have value over the next three years if our company continues to be successful and if I sell the award stock at a higher price than when the awards were granted. While my compensation remains below those of other airline CEOs, it is still a significant expense for our company and with this level of compensation comes significant responsibility. I take that responsibility very seriously and will continue to do so…”

On a forward looking note, the major U.S. carriers combined clocked up nearly $1 billion in losses in the first quarter of 2011. AMR alone posted a $436 million loss for the first quarter this year. So 2011 is going to be another year in the red for American Airlines, and we’ll be having this same conversation again next year.

2010 airline executive pay data via Airline Biz Blog

Related posts:
Airline CEO Compensation Roundup
Airline Industry Posts Record 2010 Profit

While impromptu crowds gathered in Times Square and in front of Ground Zero in New York City, at the White House in Washington, D.C., and elsewhere, to celebrate the news that Osama bin Laden had been killed by U.S. forces, the U.S. Department of State issued a worldwide warning for U.S. citizens traveling and residing abroad regarding the “enhanced potential for anti-American violence given recent counter-terrorism activity in Pakistan.”

“U.S. citizens in areas where recent events could cause anti-American violence are strongly urged to limit their travel outside of their homes and hotels and avoid mass gatherings and demonstrations.  U.S. citizens should stay current with media coverage of local events and be aware of their surroundings at all times.”

In addition, the warning strongly encouraged U.S. citizens abroad to enroll in the Department of State’s Smart Travel Enrollment Program (STEP), which aids in the dissemination of travel updates and can help with assistance during emergencies.

Clearly, the elimination of bin Laden hardly eliminates the threat of terrorism, nor will it lead to the lessening of security procedures now an ingrained part of the travel experience. Minutes after the news broke, individuals began posting on Twitter their hopes that the need to remove shoes when going through airport security, the full-body scanners and limitations on liquids allowed in carry-on luggage, among other requirements for post-9/11 travel, would be eliminated.

The rescinding of these rules is a long way off, however, given the “threats of retaliation” expected by the U.S. Department of Homeland Security, which should not come as a surprise to anyone. In New York, the Port Authority immediately increased security at the World Trade Center site and local airports.

What will be interesting to see is whether the news and worldwide warning have an impact on international travel from the United States, especially as we’re about to head into the busy summer vacation season. The expiration for the new global travel advisory is August 1, 2011.

Will the counter-terrorism events of yesterday and the new global warning impact your upcoming travel plans? Let us know.

Photo: D.M. Airoldi

Related posts:
U.S. State Department Flip-Flops on Travel Alerts
TSA—All Security, No Travel