4.03.03

Hello. This is Liz Geiss, DFW InfoRep Captain, with an APFA Hotline Update for Thursday, April 3, 2003.

The Summary of the APFA/AAL Restructuring Participation Agreement has been posted to the APFA Web site. The Summary was also sent out to all members who have registered to receive mass e-mails through the APFA Web site. The contractual language of the proposed changes will be posted after the language is completed by the APFA Negotiating Team. Our Negotiating Team is working around-the-clock to finalize the language. As more information becomes available such as explanation on the equity package and profit sharing, the satellite base letter, and other documents associated with the proposal, we will post it to the web site.

The instructions for telephonic balloting have been mailed to all members from the American Arbitration Association. They are also posted on the APFA Web site. If you have not received your instructions by Saturday, April 5, please call the APFA Balloting Committee at extension 8311. The APFA strongly encourages all members to cast an informed vote. Please wait for the APFA mailer containing the contractual language of the proposed changes and other educational material, view the web cast if possible, call Phone Watch to have your questions answered, and continue to call the hotline and visit the web site for information.

Preparations are underway to conduct a web cast to each base in order to further educate our members on the restructuring proposal. When the date, time, and locations are finalized, we will notify you through mass e-mail, hotline updates, and the web site. A web cast is a live interaction between the negotiating team in Dallas and Flight Attendants at their respective bases. The web cast will also be available for later viewing on the APFA web site if you are not available to see it live.

APFA Phone Watch is up and running at APFA Headquarters. Volunteer APFA members are there to answer your questions about the restructuring proposal. The toll-free number for Phone Watch is 1-866-ASK-APFA. We need volunteers to man the phones. If you are interested in volunteering and will be in the DFW area, please call APFA Headquarters at 1-800-395-2732, then dial “0” and asked the operator for assistance.

We are monitoring the Airlines and agency responses to the threat of the viral respiratory illness called SARS. American Airlines and the airport and health officials in San Jose responded correctly and quickly to the crews alert of the possible illnesses aboard Flight 128 between Tokyo and San Jose on Monday. APFA is in contact with American Airlines Medical and the government agencies that are working overtime to restrict the spread of SARS. Please step up the usual precautions of frequent hand washing and keeping your hand and other articles away from your face and eyes. If you suspect that an ill passenger has SARS-like symptoms, notify your Captain and follow the instructions of the health officials on the ground. Watch for updates on the APFA website and the news media.

American has included a Personal Pension Profile for each Flight Attendant on Jetnet. To access your profile, please go to Jetnet at www.jetnet.aa.com. Then, click on “Benefits and Pay,” then “My Retirement.”

The APFA is aware of some difficulties with the accessibility of the web site. Due to the extremely high volume, it may take more time than usual to access the site. We are working with our server and hope to speed access for all members. If you are one of our members that were purged from the Bulletin Board section please re-register online.

If you have had problems accessing the web site or do not have internet access, here is a summary of the AA/APFA proposed restructuring agreement to our current contract:

SUMMARY OF APFA/AAL
RESTRUCTURING PARTICIPATION AGREEMENT

• Pay rates reduced by 15.6%, effective 5/1/03
• No 1/1/04 increase
• 1.5% increase 5/1/04, 5/1/05, 5/1/06, 5/1/07, 5/1/08
• Your contractual pay step raises remain in effect, minus the 15.6% reduction
• Premium rates reduced 50% (purser, language, galley)
• Understaffing pay reduced 50%
• No holiday pay
• No narrowbody lead pay
• No longevity pay
• No reserve override
• No night pay
• EPT’s up to 12 hours unpaid versus current 8 hours unpaid
• Language pay applies to language speaker bid positions on language of destination only
• Incentive pay for all hours in excess of 70
• Per diem reduced to $1.50 Domestic/$1.75 International
• Reduction in uniform points from 18-12 (No carry over of points)
• Vacation reduced by 33%
• Vacation allowance as follows:
1+ years = 9 days
5+ years = 14 days
12+ years = 19 days
20 + years = 23 days
25 + years = 28 days

• Elimination of the pre-vacation “48”
• Trip selection maximum increased to 77 Domestic/82 International
• (Pure bids to 82 Domestic/87 International; Make-up to 85 Domestic/90 International)
• Layover rest minimums changed to FAA minimum
• Monthly guarantee reduced to 70 hours Domestic/International
• Flight attendants paid “actual” flying time versus greater of actual/scheduled flying time on leg by leg basis, however, guarantee to remain in tact
• Deadhead at 100% pay/50% credit versus 100% pay/credit
• Last trip of the month pay protection changed to last 5 days of the month versus last 7 days
• Reassignment protection changed to last 5 days of the month versus last 7 days
• Eliminate benefits for overage leaves (Flight Attendants on overage leaves will continue to accrue bidding seniority and be eligible for pass benefits)
• Eliminate furlough pay
• Reduce sick accrual to 3 hours per month; eliminate rapid reaccrual
• Minimum annual threshold
• (420 paid hours necessary to receive VC/SK accrual. Must maintain 420 hours in rolling 12 month look back period to receive medical/dental benefits at full time employee rate)
• Eliminate crew meals (Domestic/International)
• Eliminate Part-Time flying
• No changes to Flight Attendant Retirement Benefit Plan
• Profit sharing of up to 15% of eligible pay if threshold met
• Stock options (Labor to receive 24.3% of total AMR outstanding shares)
• APFA to receive 17.9% of 37,880,000 shares
• Company agrees to satellite base test
• Agreement becomes amendable 4/30/09
• Complete language will be posted as soon as it becomes available
• Subject to ratification by the APFA membership
• Company agrees to unlimited PVD’s

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This is George Price, APFA National Communications Coordinator, with an APFA Hotline Update for April 1, 2003.

Due to the extremely high volume on the APFA Web site, you may experience delays in the ability to access the site. We are working very hard with our system support to keep the site up through this high volume period. Please be patient. In addition, earlier today it became necessary to purge all members from the bulletin board registration who had not accessed the bulletin board in over 90 days. If you are now experiencing difficulties in accessing the bulletin board, please follow the steps to re-register. Due to the number of people this affects, it may take some time to process all requests.

Now, please stay on the line for the remainder of the hotline.

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This is George Price, APFA National Communications Coordinator, with an APFA Hotline Update for April 1, 2003.

The APFA Negotiating team is working with the company to finalize contractual language on the proposed changes to the collective bargaining agreement. Once the language is complete, it will be posted on the APFA Web site under “APFA/AAL Negotiations Information Center.” The language along with additional educational information will be posted on the web site and sent to each member within the next couple of days. This will include not only the overview of the proposal, but also contractual changes American intended to request in bankruptcy.

The education process will be very intense. The APFA is now organizing a web cast to be broadcast to each base in the next week. When times and locations are final, we will update the membership through the hotlines and the web site. In addition, APFA Phone Watch will be up and running Wednesday. APFA Volunteers will be available to answer questions regarding the proposed changes. The number for Phone Watch is 1-866-ASK-APFA. If you would like to volunteer for APFA Phone Watch at APFA Headquarters, please call the APFA Operator at 800-395-2732.

The APFA Board of Directors has authorized telephonic balloting of the APFA membership. The minimum 15-day balloting period will end on April 15th at 10:00 a.m. The balloting instructions for the telephonic balloting have been mailed. APFA members should fully educate themselves before they vote. Members are encouraged to wait for the printed educational material, language of the proposed changes, and the web cast prior to voting. Please make sure all of your questions regarding the proposal and all of the alternatives are answered prior to voting. Please do not vote in haste or cast an uninformed vote. The APFA is working diligently to get the information you need out to you as soon as possible.

It should be stressed that this process differs greatly from regular Section 6 negotiations. If the proposal before the membership is rejected, negotiations will not continue.

Most information that will be posted on the APFA Web site will be under members only. If you are a member in good standing and have not signed on before, please go to the “APFA Membership and Registration” page found under the “Resource Center” and register. If you have problems signing on, please click on the “Report Log-on Problems” under “Contact APFA.” Also, if you do not currently have Adobe Acrobat Reader installed on your computer, you will need this for many of the items posted to the Web site. You can download this software free of charge through the APFA Web site.

Please continue to call the APFA Hotline and visit the web site frequently for the latest information.