AMERICAN AIRLINES TO MARKET CARGO SERVICES TO OTHER CARRIERS

AMERICAN AIRLINES TO MARKET CARGO SERVICES TO OTHER CARRIERS

Under a sweeping reorganization of its cargo division, American Airlines will be marketing a broad range of cargo services to other carriers.

The services will include cargo handling, sales representation, cargo automation systems, training and consulting, said Dallas K. Sherman, the divi- sion's vice president of business development."Our plan is to take what we do well and market it to other carriers," said Mr. Sherman, who previously served as vice president of marketing and planning in the cargo division.

In his new position, Mr. Sherman will head a unit of eight to 10 people by the time it is fully staffed next month.

Under the reorganization, Steven D. Leonard, formerly vice president of cargo sales, will be responsible for marketing, advertising and pricing. Richard M. Brannon, who had been director of pricing and yield management, fills the newly created position of managing director, government and industry affairs.

William Boesch, president of the cargo division, announced the changes at a press conference here Monday. The reorganization followed an 18-month study that involved substantial input from customers and employees.

"If we are going to be customer-focused, and if we really are interested in quality, then we have to change the way we are organized internally," Mr. Boesch said.

The reorganization also includes new responsibilities for three new managers.

Joe J. Phelan, vice president of cargo services, will be responsible for implementing automated cargo terminal projects, and Brian J. McMenamy, vice president of finance and automation, will add cargo revenue accounting and customer billing to his duties. Jan L. McCormick, manager of personnel, will expand his role in the division's internal team-building process.

Mr. Boesch said the realignment is designed to build clearer lines of responsibility.

"We found we spent a lot of extra money because no one trusts anyone else's information," he said.

Meanwhile, the division's 130 sales representatives will be getting an important new tool next month when the carrier will give each of them a Toshiba notebook computer. This will enable the sales force to be "more nimble in responding to customer needs and market opportunities," Mr. Leonard said.

The computers will cost American about $500,000, but developing the systems costs millions of dollars, Mr. Boesch said.

The attempt to sell cargo services to other carriers reflects the thrust by American's parent, AMR Corp., to expand its profitable service businesses at a time when its core airline business is under intense pressure from competing carriers.

While American will eagerly pursue business opportunities with other carriers, there are some limits, Mr. Sherman said. For example, it will not offer its cargo revenue management system to arch-rivals Delta and United airlines.