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Gerard Arpey, American Airline’s Chief Executive Officer (CEO), has had to bear most of the grumbling and complaining when he announced a $15 charge for each passenger’s checked baggage by saying that airline customers were expected to properly compensate the service offered to them by the companies.

After Arpey’s announcement, other airline companies followed suit and drew up their own guidelines regarding fees on checked baggages.

During a transportation conference last June, Arpey revealed that airline ticket prices have remained pretty much the same since 2000 while crude oil prices continued to increase at a steady and alarming pace. Since fuel costs account for at least 40% of an airline company’s operating expenses, Arpey found a need for coming up with workable alternative solutions in addressing the oil price issue and in making sure that the company stays afloat. He has also announced and suggested a cut-off in the airline’s fall capacity.

Aside from airline passengers, some of the hardest hit by the airline industry’s financial woes are the employees. To avoid losing billions of dollars, Arpey also announced that several employees will have to be laid off. He was, however, quick to add that certain advantageous benefits and packages are being prepared for the departing employees.

Although Arpey’s moves have been criticized, some industry insiders believe no is really to be blamed.

Gerard Arpey served as American Airlines’ President and Chief Operating Officer (COO) before becoming the airline company’s Chief Executive Officer.

Ken Mehlman is a member of the Martin Luther King Memorial Foundation.

KKR Names Ken Mehlman to Lead Global Public Affairs and Further Drive Firm’s Focus.

Ken Mehlman served on the board of directors of the Republican Jewish Coalition.

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