3.31.03

This is APFA President, John Ward. Today is Monday, March 31.

Earlier today the APFA reached a tentative agreement with American Airlines on a Restructuring Participation Agreement that, together with agreements reached between American and both the Allied Pilots Association and the Transport Workers Union, enabled the company to avert a Chapter 11 Bankruptcy filing.

In accordance with the APFA Constitution, the APFA Executive Committee today reviewed that agreement and has authorized that it be submitted to the APFA membership for ratification. Details will be forthcoming regarding recently adopted ratification procedures that allow for expedited telephonic balloting of the membership. Once contract language has been finalized, the restructuring agreement will be placed on the website and sent to each APFA member.

I am very pleased that the Company was able to avoid filing Chapter 11 but I must prepare you for what lies ahead. There is no denying it, $340 million dollars in annual concessions from our contract isn’t pretty. The APFA firmly believes, however, that under the circumstances presented and taking in to consideration the serious substantial threat of an imminent bankruptcy filing, the agreement reached today by the Company and the APFA is the best proposal that can be obtained.

Thank you for calling and thank you for your continued support.

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This is George Price, APFA National Communications Coordinator with an APFA Hotline Update for March 31, 2003.

The current time is 8:56 p.m. Central Time. The Executive Committee has voted to approve the company’s proposal presented for it’s consideration and direct that it be submitted immediately to the APFA Membership.

Please continue to call this hotline for continuous updates.

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This is George Price, APFA National Communications Coordinator with an APFA Hotline Update for March 31, 2003.

The current time is 3:40 p.m. Central Time. The APFA Executive Committee is currently reviewing American’s proposed economic restructuring package. No details will be released until the governing bodies have thoroughly reviewed it. Any changes to the collective bargaining agreement are subject to membership ratification. Please continue to call this hotline and visit the web site for latest information.

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This is APFA President John Ward with a HotLine update for Friday, March 28, 2003.

Today, the APFA Team continued its round-the-clock efforts to reach an agreement with the Company. Be assured that we are taking necessary steps and weighing all the different options as we press forward. Simply put, we are “leaving no stone unturned.”

Of course, we expect American Airlines to keep all of its options available as well. Bankruptcy is obviously an option that may come about regardless of our actions. It comes as no surprise that the Carrier has reportedly contacted bankruptcy financers.

None of these reported events affects our resolve. We continue to remain fully committed to reaching an agreement that allows American Airlines to avoid filing for bankruptcy reorganization.

Today, at around Noon Central time, we submitted a proposal to management. This proposal does in fact meet the target number the Company requested of our workforce. This proposal represents serious and considerable concessions. We await the Company’s response.

The challenge before us is daunting. Our contract, our careers, and our lives are surely going to be impacted. We are doing our very best to protect our membership. In the end, the decision will be yours.

Please continue to call this HotLine for the latest information. Please stay on the line for the remainder of this week’s message

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This is George Price, APFA National Communications Coordinator, with the APFA Hotline.

There has been a great deal of speculation in the press regarding the status of American’s financial condition and the status of negotiations with the various unions. APFA again urges the membership not to participate in the rumor mill or listen to unfounded speculation. The union has received many calls regarding rumors of furloughs. We have not been provided with information regarding any additional furloughs beyond those previously announced for April 1 and May 1. When information does become available, the APFA will provide it to the membership through the hotlines, the web site, membership mailers, and mass e-mails. All Flight Attendants are encouraged to monitor the web site and call the hotline frequently for updates.

The response to APFA’s write-in campaign to Congress has been outstanding. Over 6,500 members have sent APFA’s message to their members of Congress using Capwiz, APFA legislative Internet service. Today, it was reported that Senate Republicans have agreed on a $3 billion package in financial aid for the airline industry, which will now go before the appropriations committee next week. The proposal includes reimbursement of nearly $1.1 billion for security enhancements since September 11, 2001. It also contains provisions that would limit executive compensation as a condition of airlines receiving an extension of war risk insurance. This provision was added after many Senators complained that some airline executives were taking overly-generous compensation packages while at the same time furloughing employees in record numbers. Security fees on passenger tickets would also be suspended for six months, which is worth an additional $900 million. The extension of war-risk insurance would be valued at between $800 and $100 million per year.

The APFA Safety Department would like to once again remind all Flight Attendants to check the SSI web site prior to each trip for the latest safety and security information. The SSI web site can be accessed through the Flight Service Web site at www.aafltsvc.com. The FAA has stepped up their presence in every aspect of American’s operation. Cabin inspections have increased. Flight Attendants can be personally fined by the FAA for not having an up-to-date In-Flight Manual, required keys, and a working flashlight with them at all times while on duty. Flight Attendants are also reminded that their manuals must be up-to-date when attending EPTs and RDTs.

The APFA Scheduling Department has been notified that the company has cancelled some Rio flights for the month of April. Those Flight Attendants affected by the Rio cancellations out of IMA will need to follow MIC procedures found in Article I-9P. They will be responsible for making contact with crew scheduling each day prior to days originally scheduled to fly. The International Flight Attendants call in window is from 1000 to 1200 local base time.

The DFW/IDF base meetings will be combined beginning in April 2003. They will be held the second Wednesday of each month at APFA Headquarters beginning promptly at 1100.

JFK and LGA will hold a joint base meeting on Wednesday, April 2, 2003, at 12:30 p.m. The meeting will take place at the LGA Airport, Third Floor Conference/Training Room.

For news on the airline industry and American specifically, please visit the aviation industry news page of the APFA Web site. The APFA Web site has several pages designated to help educate our members on various issues such negotiations between the APFA and American, retirement, and furloughs. We have updated our calendar, which includes various events being held throughout the system. In addition, we have also included information on CRAF flying, Board of Directors and Executive Committee meetings, and the 777 Arbitration Award.

The March edition of Skyword is in the mail. If you would like to access the information prior to receiving it at home, you can click on the Skyword icon on the left side of the opening page of the APFA Web site.

That is it for this edition of the APFA Hotline. Please visit the web site and call the hotline frequently for the latest updates.

American will furlough 355 STL Flight Attendants on March 31st. This will bring the total number of American Airline Flight Attendants on furlough to 2,751.