11.15.02 – (LAA) – BOD Briefed by APFA Attorneys on Pending Litigation Status, Presdiential Grievance Filed Last Year on Behalf of Former JFK-based TWA-LLC FAs

Hello. Today is Friday, November 15, 2002. This is George Price, APFA National Communications Coordinator with the APFA HotLine.

The APFA Board of Directors met for three days this week in Washington, D.C. The board was briefed by APFA attorneys on the status of pending litigation. APFA financial analyst made a presentation on the economic status of the airline industry and American Airlines in particular. In addition, representatives from APFA’s law firm provided the board with an overview of the AMR Pension Fund.

The board discussed many issues facing the APFA and our membership including among other things the evolving situation at American Eagle, scheduling and contract issues, crew rest implementation, and furloughs. The board also took up items of new business and passed several resolutions.

Resolution #2 authorized APFA to enter into an agreement with American that will provide that, if at the time TWA-LLC Flight Attendants are to be recalled, the only openings in the system are at bases other than St. Louis, rather than sending the recalled Flight Attendants to bases other than St. Louis – which the Company otherwise would be entitled to do – a number of senior TWA-LLC Flight Attendants based at STL and/or ISL equal to the number of recalled TWA-LLC Flight Attendants will be permitted to transfer to fill vacancies in other domiciles and the junior recalled TWA-LLC Flight Attendants will be sent to St. Louis. Without this agreement, more junior TWA-LLC Flight Attendants would be able to be based at locations other than St. Louis – because that is where they would be sent by the Company – while more senior TWA-LLC Flight Attendants were forced to remain at St. Louis. This agreement will not delay the time of recall for any Flight Attendant – whether an American Flight Attendant or a TWA-LLC Flight Attendant and does not amend the seniority principles contained within the Integration Agreement.

Resolution #3 passed requiring all APFA Board of Directors resolutions, voting records, and official minutes to be posted on the APFA Web site. Once this information is prepared for this board meeting, it will be posted on the Members Only section of the APFA Web site for all members in good standing to review.

The regularly scheduled quarterly Executive Committee Meeting has been postponed. Once the date, time, and location are set, it will be announced on the hotline and web site.

From the Vice President’s Department, APFA and AA have reached a settlement on a Presidential Grievance filed last year on behalf of the former JFK-based TWA-LLC Flight Attendants and obtained by APFA once we became their bargaining representative. As a result of this settlement, which complies with the APFA/AA Merger and Acquisition Agreement, and due to the merging of the two seniority lists on October 1, 2002, those former JFK-based Flight Attendants currently out on “voluntary furlough” provided under their former contract, who are senior to the most senior person on furlough in STL, will receive recall notices to return as an active employee and will be eligible for a special Overage Leave proffer.

From the APFA Safety Department: The holidays are coming and passenger loads are expected to be very heavy. Flight Attendants should be aware that among the passengers will be FAA inspectors. Please ensure you have the mandatory equipment with you while on duty, your manual is updated, and that you adhere to all FARs.

As a reminder, members posting to the APFA bulletin board must adhere to all rules governing its use. Members who violate the rules will be warned. Further violation will result in restriction of the member’s access to the bulletin board. Posts violating the rules will be immediately removed.

On Monday, November 11, 2002, officials of the Allied Pilots Association met with officials of AMR including CEO Don Carty to discuss among other things how APA can work with management and become an integral part of American’s recovery. APA officials also discussed ways American could expand regional jets within a competitive cost structure while eliminating outsourcing. APA is keeping APFA President John Ward updated on the status of these talks. As they progress and we have a clear understanding on how any agreement ultimately reached by the two parties may affect our work group, we will update you.

In Washington, D.C. this week, the U.S. House of Representatives passed the Homeland Security bill. The bill contained key provisions the APFA has been lobbying for over the past few months. They include: Self-defense provisions for Flight Attendants, a method of 2-way hands-free communication between the cabin and cockpit, and a study of non-lethal weapons for Flight Attendants. Unfortunately, the bill does not specify the number of hours involved in the self-defense training, and it allows Flight Attendants to “opt out” if they believe the training would have an adverse impact on their health or safety. The Senate is expected to pass their version of the bill next week.

Flight Attendants who were recently furloughed should take note of the following deadlines. November 26, 2002 is the last day to apply for COBRA coverage through Complink. November 29, 2002 is the last day to make changes to COBRA coverage for 2003. For more information on COBRA, please contact Complink at 877-902-9207.

December bids will open on November 17th and close on November 21st. Please remember that PCFOS is often very hard to access towards the end of the bidding period. Please bid accordingly.

In Industry News:

In accordance with a federal mandate, Delta notified 1,500 Flight Attendants they are subject to furlough within 60-days. The airline said that they may cut up to 2,300 Flight Attendant jobs. Delta also announced that it would lay off 800 mechanics and 1,212 administrative staff and close three small technician units in the spring. The airline will offer voluntary leaves to help reduce the number of layoffs.

USAirways said this week that it would seek an additional $300 million in concessions from its unions through work rule changes.

United announced late last week that it would furlough as many as 2,700 Flight Attendants. The airline must first abide by provisions in the AFA contract to help mitigate the need for involuntary furloughs prior to any layoffs.

The unions representing Flight Attendants and Pilots at United have reached concession agreements with that airline. AFA representing United Flight Attendants have agreed to a package that includes $412 million over 5 and Ω years. This includes a 3.95% pay cut affecting 85% of the current UAL Flight Attendant Corp. In addition, Flight Attendants will forgo lump sum payments they were to receive in 2003 and 2005. The Pilots represented by ALPA have agreed to $2.2 billion in concessions over the same period. Flight Attendants and Pilots must now approve their respective agreements.

Midwest Express Airlines announced it would layoff 200 to 250 employees January 1, 2003 in an effort to cut costs. This will include 63 Flight Attendants.

That’s it for this edition of the APFA HotLine. Please visit the APFA Web site for more information. Remember, there are 2,124 Flight Attendants currently on furlough