10.11.02 – (LAA) – AA Provides APFA with the Results of the Overage Leave and Partnership Flying Proffer, Family and Medical Leave Arbitration to be Held

This is George Price, APFA Communications Coordinator, with an APFA HotLine Update for Wednesday evening October 16, 2002.

Late this afternoon, American provided APFA with the results of the Overage Leave and Partnership Flying proffer that closed on October 14th.

The company granted all Overage Leave and Partnership Flying requests in STL and ISL. In all other bases, the company awarded more Overage Leaves than expected and some Partnerships. The Overage Leaves were awarded in key blocks and some auxiliary blocks. Due to manning issues, LGA, JFK, IDF, and LAXI were not awarded auxiliary blocks. Awards will be in Flight Attendant’s HI10 by Friday, October 18th.

The company will rescind an additional 75 furlough notices for STL and ISL Flight Attendants on Thursday. American will furlough 420 STL Flight Attendants effective November 1, 2002. The most senior STL Flight Attendant to be furloughed has a TWA-LLC occupational seniority number of 2837.

AMR today reported a third quarter loss of $475 million dollars before special items, which equates to a loss of $3.05 per share. This is compared to a net loss of $525 million dollars before special items, or $3.40 per share, in the third quarter of 2001. Don Carty, CEO of AMR, blamed the sluggish economy, continued weakness in the revenue environment, high fuel prices, and the cost of enhanced security and the uncertainty of events in the Middle East for the results.

Of particular interest to our work group is American’s agreement with Boeing to defer 34 airplanes slated for delivery in 2003, 2004, and 2005. American will take delivery of 11 airplanes next year-nine 767-300s and two 777s. The airline was originally scheduled to take delivery of 19 airplanes in 2003. American also announced today that the airline would “temporarily store” approximately 42 aircraft starting in 2003 through 2005. The company says they will save approximately $100 million in expenses by storing 28 MD-80s and 14 767-200s on a short-term basis.

When the APFA receives more information from American regarding today’s announcement, the Overage Leave and Partnership Flying Awards, and the furloughs, we will update the hotlines and the web site.

Now, please stay on the line for the latest edition of the APFA HotLine.

Hello. Today is Friday, October 11, 2002. This is George Price, APFA National Communications Coordinator, with the APFA HotLine.

The proffer for Overage Leaves and Partnership Flying will close on Monday, October 14th at 0800 CDT. The Overage Leaves being offered are for key blocks of one year and six months. Auxiliary blocks will also be offered. All leaves will commence on November 1, 2002. Partnership Flying will also be offered for the period November 1, 2002 through January 2003. American rescinded the furlough notices for the 271 most senior STL Flight Attendants, which makes them eligible to bid for both the leaves and Partnership Flying. Awards will be put in Flight Attendant’s HI10 by October 18th.

Those Flight Attendants awarded the six-month Overage Leaves November 1, 2002-April 2003 may request to extend the leave through October 31, 2003. Requests for the extension must be submitted through the flight service web site at www.aafltsvc.com. Once on the site, interested Flight Attendants will click “comments” and then select “extension” from the drop-down menu. Extension requests must be received by 0800 Central Time October 21st.

The APFA Partner Finder on the APFA Web site has been reactivated. The Finder along with more information on Overage Leaves and Partnership Flying can be found under the “Reduction in Force” icon on the APFA Web site.

As a reminder to all Flight Attendants taking Overage Leaves, you remain dues obligated to the APFA during your leave. To make payment arrangements, please contact the APFA Dues Department at 800-395-2732, extension 8151.

While on the subject of dues, an updated list of Flight Attendants in dues arrears will be published in the November/December issue of Skyword. In order to ensure your name is not on the list, please make sure that your dues and/or fees are paid or that your payment plan is current by October 25th. To make payment arrangements for dues and/or fees owed, please contact the APFA Dues Department.

The deadline for completion of fingerprinting is fast approaching. Any Flight Attendant whose fingerprints have not been cleared by December 6th will be removed from flight status with a “QI” removal code. Please allow plenty of time prior to this date to ensure your fingerprints can be processed by the deadline. Please check with your local flight service management for fingerprinting times and locations at your base.

The APFA Safety Department would like to remind all Flight Attendants that they must be in their jumpseats with their harness fastened during aircraft taxi except to perform duties related specifically to safety.

In other safety news, the Safety Department strongly encourages every Flight Attendant to take the time to access the security information on the Sensitive Security Information site on the flight service web site. This site contains the most current security information released by the U.S. government and includes Security Directives, Information Circulars, and daily security updates.

Two thousand three Benefits Enrollment began on October 1 and will close on October 31. There are several changes to the benefit plans that you should make yourself aware of prior to making your elections. In addition, all enrollments must be accomplished on-line through Jetnet at www.jetnet.aa.com. The company is currently conducting road shows to explain the new procedures and there is also an enrollment tour on Jetnet. You do need a password to access Jetnet. If you have never activated your password or experience any problems with your current password, call Employee Services at (800) 888-1696 or (817) 967-1770 for assistance.

The Family and Medical Leave arbitration will be held on October 14-16th at the Learning Center. The sessions will begin at 0830. APFA Members in good standing are welcome to attend. Seating is limited.

In Washington, the debate over whether to declare war on Iraq continued throughout the week. Senate Democrats have proposed legislation (S.3009) that would extend unemployment benefits by 13-weeks and an additional seven weeks for jobless in states with higher unemployment rates. Senate Republicans argue that the unemployment rate for September is slightly down from August, and that the economy is not in the “free-fall” the Democrats would have the American public believe. Representative James Oberstar (D-MN) has vowed to continue working on legislation that would help laid off airline workers despite the fact that provisions to offer financial assistance was removed from the Aviation Industry Stabilization and Reform Act of 2002 last week.

Tuesday, November 5th is Election Day. The APFA encourages all members to vote. If you are scheduled to fly or are on reserve on the 5th, please contact the agency in your area in charge of voter registration to vote absentee or vote early if that is available in your state. For those Flight Attendants who are off on that day, please take the time to go to the polls and cast your ballot. It is essential that labor come together to vote for candidates that will support our position on the issues affecting us all in the labor and airline community.

Retirement seminars are being conducted at bases throughout the system. Company retirement specialist and representatives of the APFA will be making presentations. A list of upcoming meetings is as follows:
LAX
October 17 & 18
Sessions are schedule for 1100 and 1400

DFW
October 28 and November 1
Sessions are scheduled for 1000, 1300, and 1530

LGA
November 4 and 5
Sessions To Be Announced

BOS
November 6
Sessions 0800, 1200, and 1600

Flight Attendants should contact their local flight service office for meeting locations. Additional seminars are currently being planned for 2003. An updated list of retirement meetings can be found on the APFA Web site under the Retirement icon.

In Industry News:

American grabbed the headlines several times this week.

Monday, American announced that it would enter into agreement with Miami-based Duty Free Ship and Supply to manage its in-flight Duty Free program.

That same day, American also announced that it would take a $900 million charge to reflect a drop in the value of some of the assets it acquired from Reno Air and TWA. The Company said that the write-off will not have an effect on cash flow and will not impact any of its credit agreements.

Mid-week, industry analyst made predictions about AMR’s third quarter results and the Company’s overall financial condition. Some went as far as to predict bankruptcy for the carrier in 2003. On Thursday, AMR CEO Don Carty vehemently denied that the airline was headed for bankruptcy. He told local DFW reporters that the airline was working hard to cut cost, not to fly into bankruptcy. AMR is scheduled to post third quarter results on Wednesday, October 16th. APFA is monitoring events. The APFA Web site has an “Aviation News” site that has updated information on American and the airline industry. This is a good site to visit daily.

The Allied Pilots Association will begin a six week period of negotiations with the Company beginning next week with the assistance of a Federal Mediator.

Earlier this week, the International Association of Machinists and Aerospace Workers broke away from the coalition of unions at United to begin independent talks with the airline on concessions. The union coalition has been negotiating with United for over two weeks in order to reach concessions required to obtain federal loan guarantees. The unions have proposed concessions totaling $5 billion, which was well short of the $9 billion United said it needed to qualify for the loan guarantees. No agreements have been reached to date.

US Airways sent furlough notices to 278 Pilots and 642 Fleet Service and Customer Service Employees this week. The airline cited a “sluggish economy and weak demand” as the reason for the cutbacks.

On Monday, Delta announced that it would send some reservations work to the Philippines and India in order to save up to $15 million per year. The airline said that the move is not expected to impact United States reservations centers at this time.

On October 13th, American Airlines will furlough 162 Flight Attendants. This will bring the total number of Flight Attendants on furlough to 1,728.

That’s it for this edition of the APFA HotLine. Please visit the web site for the latest information.