Donald J. Carty
Encyclopedia
Donald J. Carty, OC
(born 1946) is a Canadian
/American
businessman who serves as chairman of Virgin America
and Porter Airlines
. In addition to these chairmanships, Mr. Carty is also a director of Dell
, Hawaiian Airlines
, Sears, CHC Helicopter
and Barrick Gold
. He was previously chairman and chief executive officer
(CEO) of AMR Corporation, the parent company of American Airlines
, from 1998 to 2003. Carty is chairman of the Big Brothers Big Sisters of America
, a member of the Board of Trustees of Southern Methodist University
and of the Executive Board of the SMU Cox School of Business
, and a member of the board of directors of the Dallas Center for the Performing Arts Foundation. In January 2007, Carty became the Vice Chairman and chief financial officer
of Dell. On June 13, 2008, Carty retired from day-to-day operations, but stayed on as Vice Chairman.
, Canada
on July 23, 1946, Carty attended Queen's University
and Harvard Business School
. He worked for Air Canada
and the Canadian Pacific Railway
before joining American, although he served as CEO for CP Air from 1985 to 1987. At American, he served as controller, and later as executive vice president for finance and planning under CEO Robert Crandall
.
In April 2003, in the long wake of the September 11 attacks and facing an industry beset by terrorism and hard times, Carty and his executive board were forced to strike a cost-cutting deal with American's labor union
s, intended to mitigate AMR's upcoming $1 billion first-quarter loss. The deal—the largest corporate restructuring outside of bankruptcy in American history—almost unraveled several days later, when unions learned that AMR executives were keeping $41 million in retention bonuses. Although many other airlines had similar retention bonus arrangements, several AMR board members—most notably University of Oklahoma
president David L. Boren
--called for Carty's resignation.
Carty stepped down on April 24, 2003. He was replaced as CEO by Gerard Arpey
, and as chairman by Edward A. Brennan
.
Carty was appointed as Chairman of Virgin America
on February 6, 2006. On February 2 of that year, Toronto-based Porter Airlines
, in the process of starting up a small regional service out of the downtown Billy Bishop Toronto City Airport, announced that Carty would simultaneously serve as its chairman. He is also a director of Sears, CHC Helicopter
, Barrick Gold
, and Dell
, becoming the latter's chief financial officer
on 1 January 2007. On May 19, 2008, Dell announced that Carty, hired to help lead the computer maker's successful turnaround, would step down and be replaced by longtime General Electric executive Brian Gladden on June 13. Dell said that Carty would stay on as Vice Chairman.
In 2002, he was made an Officer of the Order of Canada
.
Order of Canada
The Order of Canada is a Canadian national order, admission into which is, within the system of orders, decorations, and medals of Canada, the second highest honour for merit...
(born 1946) is a Canadian
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
/American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman who serves as chairman of Virgin America
Virgin America
Virgin America, Inc. is a United States-based low-cost airline that began service on August 8, 2007. The airline's stated aim is to provide low-fare, high-quality service for "long-haul point-to-point service between major metropolitan cities on the Eastern and West Coast seaboards." San Francisco...
and Porter Airlines
Porter Airlines
Porter Airlines is a regional airline headquartered at Billy Bishop Toronto City Airport on the Toronto Islands in Toronto, Ontario, Canada. Porter operates regularly scheduled flights between Toronto and locations in Canada and the United States using Canadian-built Bombardier Dash-8 Q 400...
. In addition to these chairmanships, Mr. Carty is also a director of Dell
Dell
Dell, Inc. is an American multinational information technology corporation based in 1 Dell Way, Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest...
, Hawaiian Airlines
Hawaiian Airlines
Hawaiian Airlines, Inc. is a major airline of the United States. It is the largest airline based in the State of Hawai'i, and is the 11th largest commercial airline in the country. Based in Honolulu CDP, City and County of Honolulu, the airline operates its main hub at Honolulu International...
, Sears, CHC Helicopter
CHC Helicopter
CHC Helicopter is one of the world’s largest helicopter services company specializing in: Transportation to offshore oil and gas platforms; Civilian search and rescue services; Helicopter maintenance repair and overhaul...
and Barrick Gold
Barrick Gold
Barrick Gold Corporation is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units located in Australia, Africa, North America and South America...
. He was previously chairman and chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
(CEO) of AMR Corporation, the parent company of American Airlines
American Airlines
American Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
, from 1998 to 2003. Carty is chairman of the Big Brothers Big Sisters of America
Big Brothers Big Sisters of America
Big Brothers Big Sisters of America is a 501 non-profit organization whose mission is to help children reach their potential through professionally supported, one-to-one relationships with mentors that try to have a measurable impact on youth....
, a member of the Board of Trustees of Southern Methodist University
Southern Methodist University
Southern Methodist University is a private university in Dallas, Texas, United States. Founded in 1911 by the Methodist Episcopal Church, South, SMU operates campuses in Dallas, Plano, and Taos, New Mexico. SMU is owned by the South Central Jurisdiction of the United Methodist Church...
and of the Executive Board of the SMU Cox School of Business
Cox School of Business
The Cox School of Business is a business school at Southern Methodist University offering a full range of business education programs.Degrees include , full-time Master of Business Administration , , , Master of Science in Management , Master of Science in Accounting , and a Master of Science in...
, and a member of the board of directors of the Dallas Center for the Performing Arts Foundation. In January 2007, Carty became the Vice Chairman and chief financial officer
Chief financial officer
The chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...
of Dell. On June 13, 2008, Carty retired from day-to-day operations, but stayed on as Vice Chairman.
Biography
Born in TorontoToronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
on July 23, 1946, Carty attended Queen's University
Queen's University
Queen's University, , is a public research university located in Kingston, Ontario, Canada. Founded on 16 October 1841, the university pre-dates the founding of Canada by 26 years. Queen's holds more more than of land throughout Ontario as well as Herstmonceux Castle in East Sussex, England...
and Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
. He worked for Air Canada
Air Canada
Air Canada is the flag carrier and largest airline of Canada. The airline, founded in 1936, provides scheduled and charter air transport for passengers and cargo to 178 destinations worldwide. It is the world's tenth largest passenger airline by number of destinations, and the airline is a...
and the Canadian Pacific Railway
Canadian Pacific Railway
The Canadian Pacific Railway , formerly also known as CP Rail between 1968 and 1996, is a historic Canadian Class I railway founded in 1881 and now operated by Canadian Pacific Railway Limited, which began operations as legal owner in a corporate restructuring in 2001...
before joining American, although he served as CEO for CP Air from 1985 to 1987. At American, he served as controller, and later as executive vice president for finance and planning under CEO Robert Crandall
Robert Crandall
Robert Lloyd "Bob" Crandall is the former president and chairman of American Airlines. Called an industry legend by airline industry observers, Crandall has been the subject of several books and is a member of the Hall of Honor of the Conrad Hilton college.-Life:Robert Crandall was raised in Rhode...
.
In April 2003, in the long wake of the September 11 attacks and facing an industry beset by terrorism and hard times, Carty and his executive board were forced to strike a cost-cutting deal with American's labor union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
s, intended to mitigate AMR's upcoming $1 billion first-quarter loss. The deal—the largest corporate restructuring outside of bankruptcy in American history—almost unraveled several days later, when unions learned that AMR executives were keeping $41 million in retention bonuses. Although many other airlines had similar retention bonus arrangements, several AMR board members—most notably University of Oklahoma
University of Oklahoma
The University of Oklahoma is a coeducational public research university located in Norman, Oklahoma. Founded in 1890, it existed in Oklahoma Territory near Indian Territory for 17 years before the two became the state of Oklahoma. the university had 29,931 students enrolled, most located at its...
president David L. Boren
David L. Boren
David Lyle Boren is an academic leader and American politician from the state of Oklahoma. A Democrat, he served as the 21st Governor of Oklahoma from 1975 to 1979 and in the United States Senate from 1979 to 1994. He is currently president of the University of Oklahoma. He was the longest serving...
--called for Carty's resignation.
Carty stepped down on April 24, 2003. He was replaced as CEO by Gerard Arpey
Gerard Arpey
Gerard J. Arpey is the former Chairman, President, and Chief Executive Officer of AMR Corporation, parent company to American Airlines.-Career:...
, and as chairman by Edward A. Brennan
Edward A. Brennan
Edward A. Brennan was a former Chairman of the Board, President and Chief Executive Officer , Sears, Roebuck and Co....
.
Carty was appointed as Chairman of Virgin America
Virgin America
Virgin America, Inc. is a United States-based low-cost airline that began service on August 8, 2007. The airline's stated aim is to provide low-fare, high-quality service for "long-haul point-to-point service between major metropolitan cities on the Eastern and West Coast seaboards." San Francisco...
on February 6, 2006. On February 2 of that year, Toronto-based Porter Airlines
Porter Airlines
Porter Airlines is a regional airline headquartered at Billy Bishop Toronto City Airport on the Toronto Islands in Toronto, Ontario, Canada. Porter operates regularly scheduled flights between Toronto and locations in Canada and the United States using Canadian-built Bombardier Dash-8 Q 400...
, in the process of starting up a small regional service out of the downtown Billy Bishop Toronto City Airport, announced that Carty would simultaneously serve as its chairman. He is also a director of Sears, CHC Helicopter
CHC Helicopter
CHC Helicopter is one of the world’s largest helicopter services company specializing in: Transportation to offshore oil and gas platforms; Civilian search and rescue services; Helicopter maintenance repair and overhaul...
, Barrick Gold
Barrick Gold
Barrick Gold Corporation is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units located in Australia, Africa, North America and South America...
, and Dell
Dell
Dell, Inc. is an American multinational information technology corporation based in 1 Dell Way, Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest...
, becoming the latter's chief financial officer
Chief financial officer
The chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...
on 1 January 2007. On May 19, 2008, Dell announced that Carty, hired to help lead the computer maker's successful turnaround, would step down and be replaced by longtime General Electric executive Brian Gladden on June 13. Dell said that Carty would stay on as Vice Chairman.
In 2002, he was made an Officer of the Order of Canada
Order of Canada
The Order of Canada is a Canadian national order, admission into which is, within the system of orders, decorations, and medals of Canada, the second highest honour for merit...
.