12.06.02 – (LAA) – APFA, APA, and TWU Met with Don Carty Regarding Forgoing the 3% Pay Increase, NBC Retrieved WTS Notifications

SPECIAL MESSAGE FROM APFA PRESIDENT JOHN WARD – DECEMBER 6, 2002

This is APFA President John Ward with a special APFA Hotline message for Friday, December 6th. It is approximately 8:00 PM Central Time.

Earlier this evening the APFA National Officers along with the Officers of the Allied Pilots Association and the Transport Workers Union met with AMR Chairman and CEO Don Carty. At that meeting, the APFA was asked to forgo our scheduled 3 % pay increase that’s scheduled to take effect January 1, 2003. In addition, the Company also requested we forgo increases in Purser Pay that are scheduled for July 1, 2003.

Given the Company’s stated objective of reducing costs by $4 Billion, today’s meeting was certainly not unexpected, especially in light of the Company stating publicly that cost reduction efforts thus far have fallen far short of that mark.

Prior to responding to the Company, APFA’s analysts will be reviewing the Company’s finances. Following that review, I will be calling the APFA Board of Directors together for a Special Board Meeting to go over these results and to discuss the issue further.

Any change to contractual rates of pay requires membership ratification.

Please continue to call this hotline or consult the web site for accurate up to date information.

Thank you for calling. Please stay on the line for the remainder of this week’s message.

Today is Monday, December 9, 2002. This is George Price with a special APFA HotLine Update.

The National Ballot Committee retrieved Willingness-to-Serve Notifications today for the positions of Chair and Vice Chair for ISL. Carol Hajicek has been duly elected Chair and Yvonne Blake-Harraghy has been duly elected Vice Chair for the balance of the term ending March 31, 2003.

From the Safety Department: Recently there have been several layover security events around the AAL system that necessitate a reminder to all crewmembers – APFA cannot overstate the importance of all crewmembers remaining vigilant with respect to personal security while on layover. Take the time to read the SSI web site located on the Flight Service Web site, particularly the Daily Updates, and plan your activities accordingly. If at all possible avoid going out alone. If you must venture out alone, let someone on your crew know your whereabouts and anticipated time of return. Take extra care while on layovers — both Domestic and International – stay alert — stay vigilant — stay safe.

Now, please stay on the line for the December 6th edition of the APFA HotLine.

Hello. Today is Friday, December 6, 2002. This is George Price, APFA National Communications Coordinator with the APFA HotLine.

On Monday, American notified the APFA that a system wide overage of 1,100 Flight Attendants exists in February. In accordance with Article 16 of our contract, the company must offer Overage Leaves of absence and Partnership Flying in an effort to mitigate the need for furloughs. The proffer for Overage Leaves will open on Wednesday, December 11, 2002 and will close at 0800 Central Time on Tuesday, January 7, 2003. The leaves will be offered in key blocks of 12-months beginning February 2003 and running through January 2004 and 6-months running from February 2003 through July 2003. Auxiliary blocks may also be offered in 3-month and 9-month blocks for the 12-month key blocks and 3-month and 3- month blocks for the 6-six months key block. Partnership Flying may also be offered for the period February through April 2003. Awards should be available on or about January 10, 2003.

The company will send notices next week to the 400 Flight Attendants “subject to” furlough as a result of this reduction. If a furlough is necessary, it will be done in accordance with Article 16.B.1, Page 185 of the contract, which states “When there is a reduction in force, the Flight Attendant(s) with the least system seniority shall be laid off.”

The APFA Partner Finder on the APFA Web site is now active. This service has been set up to help interested Flight Attendants find a partner at their base for Partnership Flying.

Please remember that any Flight Attendant taking an Overage Leave will continue to accrue all seniority and maintain company benefits for the duration of their leave. When the leave is complete, they will return to active status in the base they were in at the time they took the leave. For more information on Overage Leaves and Partnership Flying, please visit the APFA Web site “Reduction in Force” page. Additional information is contained in Article 16.A, page 185 of the contract.

Willingness-to-Serves for the position of APFA Base Chair, Vice Chair, and Operational Council Representatives for all bases and Ad Hoc member of the Executive Committee Place #5 are included in the November/December issue of Skyword. Completed Willingness-to-Serves for Chair, Vice Chair, and Operational Council Representatives are due in the designated P.O. Box by 1000 Central Time, Tuesday, January 21st. Ballots will be mailed February 8, 2003, and will be due in the designated P.O. Box by 0900 Central Time March 11, 2003. Willingness-to-Serves for Ad Hoc Place #5 are due by 1000, February 11, 2003. The November/December 2002 Skyword was mailed today to all Flight Attendants. It is now available on-line at www.www.apfa.org. Click the Skyword icon on the left side of the opening page.

The Family and Medical Leave Arbitration will continue on December 10th and 11th at the DFW Hyatt Hotel. The hearings will begin at 0830. All Flight Attendants are welcome and encouraged to attend.

The APFA Safety Department reminds Flight Attendants that AA employees, whose airline ID has been verified by an AA Representative are exempt from selectee screening at the gate and should not be chosen to fulfill the continuous gate inspection requirements. Although U.S. air carrier employees are exempt from gate screening, AA corporate security has decided not to include other airlines in the exemption since there is no way to ensure they are a valid employee.

An updated list of Flight Attendants in dues/fees arrears has been posted on the APFA Web site and is included in the November/December Skyword. If you are in arrears and would like to make payment arrangements, please contact the APFA Dues Department at 800-395-2732, extension 8151.

The APFA National Ballot Committee has certified the results of the Chicago International Council Vice Chair election. Michael Meyer has been elected by the voting OCR members of the IOR council as the new Vice Chair and will serve the balance of the term, which expires March 31, 2003.

The APFA Web site is being updated daily. Members should access the “Aviation Daily News” page regularly for updates on American and the airline industry. There have been upgrades to various base pages and additional job opportunities added to the Furlough Page. Please take the time to visit the site today and become familiar with all of the information contained on it.

In Industry News:

American reported November system wide traffic results this week. Traffic increased 8.7 percent from November 2001. The system load factor was 67.5 percent, which was up 1.9 points from a year ago. International traffic in November was up 23 percent compared to November 2001.

Moody’s published a report this week regarding American’s financial condition. In the report, Moody’s stated that it expected American to achieve positive cash flow sometime in the second quarter 2003. The report goes on to say “American’s cash flow deficit, along with capital spending and debt maturities, has recently been and is expected to continue to be funded with borrowings. Capital spending has been reduced but is expected to be as much as $1.4 billion in 2003. More than half the capital expenditures are for new aircraft.” American carried $2.8 billion of cash and short-term investments as of September 30, 2002. Moody’s expects American to have continued access to public and private markets on a secured basis. American has stated that it has aircraft and other assets totaling $4.2 billion to support additional borrowings.

The big news in the industry is the financial state of United Airlines. On Wednesday, the the Air Transportation Stabilization Board rejected United’s application for federal loan guarantee stating United’s plan “does not support the conclusion that there is a reasonable assurance of repayment and would pose an unacceptably high risk to U.S. taxpayers.” Unions at United were quick to condemn the Board’s decision. AFA called the rejection “irresponsible.”

Faced with a debt payment of $375 million and the Stabilization Board’s rejection of United’s application for federal loan guarantees, Glenn Tilton, UAL CEO, said that bankruptcy for the carrier is a “more likely outcome.” He said that concessions agreed to by the various unions were conditioned on obtaining the federal loans. If United does file bankruptcy, the impact will be felt throughout the industry. The airline may have to park planes, reduce flight schedules, further reduce the number of employees employed by the company, and possibly sell off key assets.

United announced on Tuesday it planned to furlough an additional 352 Pilots over the next two months.

US Airways Pilots were told on December 4th that the airline is in danger of loosing the $500 million in emergency funding from the Alabama pension fund. ALPA Representatives said that US Airways is not meeting terms of its debtor-in-possession financing.

Please remember there are 2,124 Flight Attendants currently on furlough.

That is it for this edition of the APFA HotLine. Please visit the APFA Web site for the latest information.