4.25.03

Hello. This is APFA President John Ward with an APFA HotLine Update. Today is Friday, April 25th.

The APFA Board of Directors has voted to accept an improved proposal from American Airlines’ Management that has kept the Company from filing for bankruptcy.

The Board of Directors reached across political lines in order to accept the Company’s enhanced proposal. Despite legitimate philosophical differences how best to proceed, the Board has acted in the best interest of the membership to reach an agreement in order to allow us to move forward. The Board of Directors has been faced-we all have been faced-with many difficult decisions for months now. The Board of Directors’ commitment to the membership has been evident throughout this process, and they are to be commended.

The proposal accepted by the APFA today shortens by one year the original Restructuring Agreement. It also gives APFA the right to reopen the contract in three years.

In addition, the union has also obtained an ability to address the so called “underfly” provision-arguably one of the most onerous changes to our contract in the Restructuring Agreement. The APFA and the Company have agreed on a mechanism to resolve this issue over the next 60-days by substituting it with a replacement cost savings provision.

The APFA has also obtained another enhancement to the Restructuring Agreement which allows for the greater likelihood of payment of cash incentives tied to the Company’s performance. Further, Management’s cash bonuses will be tied to the same performance measures. This will ensure Flight Attendants receive fair treatment when the Company returns to financial viability.

More information on the Board’s decision and the enhanced proposal will be included on the web site and on this HotLine as more details become available over the course of the next few days. Many of the details are still being worked out. We ask for your patience.

Please continue to call the HotLine and web site for more details.

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This is George Price, APFA National Communications Coordinator, with the remainder of the APFA Hotline for Friday, April 25, 2003.

Today, APFA President John Ward joined APA President John Darrah at a press conference at AMR Headquarters to introduce Gerard Arpey, the new CEO of American Airlines. John Ward made it very clear that “Flight Attendants-as well as other union members and AA employees have made an enormous sacrifice to keep this company out of bankruptcy.” He went on to say, “We cannot forget that, and we’re not going to be idle or silent in the face of any future actions or inactions by the company that we believe will threaten the long-term viability of American Airlines.” President Ward concluded his comments by saying, “We have a significant stake in the success of our company, and the sacrifices we are making represent an investment that we’re going to watch very carefully.”

Later in the day, APFA held a press conference. President Ward clearly outlined for the press just what APFA faced over the course of the past few months and the actions that our union took in response.

The complete text of John Ward’s statements at both news conferences can be found on the opening page of the APFA Web site.

There have been several additions to the web site today. The Letter of Agreement containing the enhancements to the Restructuring Agreement has been posted.

APFA realizes that members still have questions regarding the Restructuring Agreement, the recent enhancements to it, and the implementation schedule. APFA will be working diligently to finalize an implementation schedule with management and provide it to you. We will also work to provide you with information that will help clear up questions you may have about the agreement.

APFA is saddened by the passing of Martha W. Griffiths, a long-time member of the United States House of Representatives, who was very instrumental in passage of the Equal Rights Amendment to the U.S. Constitution. The APFA’s highest honor for service to our union is named after her. Martha W. Griffiths was an Honorary Member of the APFA. Viewing will be on Sunday, April 27, 2003 from 2 p.m. to 8 p.m. at the Tiffany, Young, and Hauss Funeral Home, 73919 Fulton Street, Armada, Michigan. The phone number is 586-784-9123. A memorial service will be held on Monday, April 28th at 12 Noon at the same location. Donations may be sent to Hicks & Martha W. Griffiths Rare Book Room, Library of Michigan, 702 W. Kalamazoo, P.O. Box 30007, Lansing, MI 48909.

The APFA leadership realizes that this has been a very trying few months for us all. Our union has been divided by the choices we have all had to make and the ever-changing situation. It is essential that we begin to move forward. It is not going to be easy, but it must be done. Our unity is what has made us one of the strongest unions in this country. If we have learned nothing more for this, it is that we must be ready to face the unexpected. If we are united, we can and have faced adversity successfully.

That is it for this edition of the APFA Hotline. Please remember that there are 2,751 American Airlines Flight Attendants currently on furlough.