07.16.03 – (LAA) – Turnaround Plan Objectives, AA Announce Will Reduce Flights from STL

Hello. Today is Wednesday, July 16, 2003. This is George Price, APFA National Communications Coordinator, with an APFA Hotline Update.

American Airlines made a series of announcements today regarding the Company’s financial results and the Turnaround Plan objectives.

American announced that it would reduce flights American, American Eagle, and American Connection offers from St. Louis from the current 417 flights to 207 flights per day by November 1, 2003. This will permit it to strengthen its hubs in DFW and ORD. American will still, however, serve 68 nonstop markets including Cancun and San Juan on weekends.

The airline has no plans to close its Flight Attendant crew base in St. Louis. However, as a result of the downsizing of the hub, 130 of those forced into STL will, in accordance with Article 16.D.3, page 187 of the contract, be given the opportunity to return to the bases where they were assigned prior to being forced into STL. Reinstatement will be offered to 80 Flight Attendants to DFW, 40 to LAX, and 10 to MIA. This will be accomplished in seniority order among those offered reinstatement. Those Flight Attendants originally based in those three bases will be sent an e-mail with instructions on how they can proffer to return to their original base. More details on today’s announcement by the Company and reinstatement rights can be found on the APFA Web site opening page.

The Company’s announcement did not include information on any additional Flight Attendant furloughs. Again, today’s announcement by American Airlines did not include additional Flight Attendant furloughs. American also made no changes to the originally announced fleet plan, which calls for the grounding of 57 planes in 2003 and 57 more planes in 2004.

American also announced today that it would close its St. Louis reservations office effective September 15, 2003. No decisions have yet been made on maintenance facilities.

The Company announced a second quarter loss of $75 million, or $.47 per share. Included in this total were several special items including a $358 million cash payment from the Transportation Security Administration as part of the 2003 Emergency Wartime Supplemental Appropriations Act. Once this amount is excluded, AMR reported a net loss of $357 million, or $2.26 per share. These results did not include a benefit from federal and state income taxes. The financial results reported today are substantially better than those of the first quarter of 2003, which were a $1.04 billion loss and a loss of $720 million in the second quarter 2002.

Of particular interest to all American Airlines Flight Attendants is the Company’s announcement today that Lauri Curtis, Vice President of Reservations, will assume the position of Vice President of Flight Service.

That is it for this special edition of the APFA Hotline. Please stay on the line for the remainder of the APFA Hotline.