5.23.03

APFA Hotline Update May 29, 2003. This is APFA National Communications Coordinator George Price with an APFA Hotline Update.

American Airlines notified the APFA today that Jane Allen has resigned as Vice President of In-Flight Services. Ms. Allen has joined United Air Lines as Senior Vice President of Onboard Services. Patrick O’Keeffe has been named acting Vice President of In-Flight Services until a permanent replacement is named.

The APFA Board of Directors is currently in session. The Board is discussing, among other things, alternatives to the underfly provision of the Restructuring Agreement.

This hotline will be updated as information becomes available.

Please stay on the line for the Friday, May 23rd hotline.

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This is APFA President John Ward. Today is Friday, May 23.

As you know, the April 25 Letter of Agreement between APFA and the Company provides a mechanism for substituting the so-called “underfly” provision contained in the Restructuring Agreement for another item that provides annual cost savings to the Company equal to the annual cost savings of the “underfly” provision. As a reminder, “underfly” would pay a flight attendant the actual flying time of a flight segment versus the current method of paying “scheduled or greater”. For example, a flight segment from DFW to MIA, may be scheduled for 3:00 flying time. With “underfly”, if that flight took only 2:50, that flight attendant would receive, for pay purposes, the 2:50, not 3:00. Although the various pay and credit provisions contained in our contract may offset “underfly” on sequences that contain pay and credit and although “underfly” would not reduce a flight attendant’s pay below the 70-hour guarantee, many flight attendants would see the negative impact of calculating flight pay in this manner as evidenced by the $20 million in annual savings it would provide the Company.

APFA representatives and the Company have, in accordance with the terms of the Letter of Agreement, met to discuss possible alternatives to “underfly” and to review the detailed financial information on these alternatives. The APFA Board of Directors will meet next Thursday to review the situation and to determine how APFA intends to identify what might be substituted for the “underfly” provision. This hotline will be kept updated with the latest information as this process unfolds.

On another note relating to the Restructuring Agreement, the Equity Plan will provide stock options to flight attendants. Please review “Attachment O”of the Restructuring Agreement. Additional information will be forthcoming following the determination by the APFA Board of Directors of the formula for allocation of these options.

Finally, the APFA national officers will be traveling to all crew bases next month for base visits. I, and the other officers, look forward to hearing from you your thoughts and concerns.

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

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Hello. Today is Friday, May 23, 2003. This is George Price, APFA National Communications Coordinator, with the APFA Hotline.

The APFA National Officers will visit each base in the system during the month of June. A complete schedule of the meetings, time, dates, and locations is being sent to all Flight Attendants. The schedule can also be found on the APFA Web site. The following is a schedule of meeting dates by base:

June 4 LAX
June 5 SFO
June 10 ORD
June 11 DFW
June 13 STL
June 17 BOS
June 18 NYC
June 19 MIA
June 25 DCA
June 30 RDU

The meetings will begin at 1000 and are scheduled to end at 1300.

The APFA Safety Department would like to remind all Flight Attendants that the Office of Homeland Security has elevated the threat level to “Orange” or “High.” Security at all U.S. Airports has been stepped up. Please visit the SSI Web site on the Flight Service Web site for the very latest safety and security information. The site can be accessed by clicking on “My job” then “Safety and Security.” While on layovers, please be aware of your environment at all times and be sure to notify another crewmember of your whereabouts if you venture out. If you ever feel threatened, please contact the authorities immediately.

Rapid Response Meetings designed to assist furloughed employees with information regarding unemployment benefits, COBRA, grants, job placement, financial planning, and other useful information are being conducted throughout the system. American’s Outplacement Development Office in conjunction with various state unemployment offices and Division of Work Force Development Offices are working to schedule these meetings. APFA is assisting by publicizing times, dates, and locations. When meetings are finalized, we will include them on the APFA Hotline and on the APFA Web site under “Calendar” and “Furlough Assistance Events” on the Furlough page. The following is a list of confirmed meetings:

LAX-June 3 and 26th at 0900 and 1300 in the Flight Service Conference Room-Concourse Level. Boston-June 10th at 1000 and 1300 in the Virgin Atlantic Room. Chicago-June 5th at 1000 and 1400 in the Group Room across from Gate K1. DFW-June 12th at 1000 in the Eagle Wing Room 3E39 at Flagship University. Also, June 26th at 1530 in the Yandry Center across from Gate C3 at DFW.

The APFA Web site “Furlough” page has a great deal on useful information including direct links to each state’s unemployment offices, job search sites, and job and educational opportunities. These are updated frequently. We encourage any Flight Attendant facing reduction in force or who is currently on furlough to visit this site.

The April/May 2003 issue of Skyword has been mailed. It is now available on the APFA Web site under the “Skyword” icon on the left hand side of the opening page.

APFA would like to remind all members that use of the APFA Bulletin Board is governed by stated rules. Each time a member signs onto the bulletin board, they must agree to abide by these rules. Failure to comply can and will result in a warning and any posts violating the rules will be removed. Continued violations will result in permanent restriction of use of the APFA Bulletin Board. Violations include, but are not limited to, posting of information that is:

(a) sexually explicit;
(b) an invasion of privacy;
(c) racial, religious, or other harassment; or
(d) defamatory, indecent, intimidating or obscene.

The AMR Stockholder’s Meeting was held at Flagship University on Wednesday, May 21st. During the meeting, Mr. Arpey announced “The American Turnaround Plan.” There were few details released about the overall plan. In his remarks, Mr. Arpey announced that the Company planned to add seats to the entire 757 and A300 fleet by the first part of 2004. This is due in large part to the fact these aircraft serve a large number of leisure markets where volume is high. The More Legroom configuration will remain on the rest of the fleet. When asked if the overall fleet reduction would result in more furloughs, Mr. Arpey said that the announced furloughs have already taken into account the overall fleet plan. When grilled by employees who were in attendance about full disclosure of all executive compensation, Mr. Arpey and other members of the Board of Directors went on record as promising that there would be full disclosure and that they intended to lead by example.

The APFA Offices will be closed on Monday, May 26, 2003, in observance of Memorial Day. An Officer on Duty will be available to take emergency calls. Calls of a non-emergency nature will be routed to the appropriate representative or department for response the next business day.

That is it for this edition of the APFA Hotline. Please visit the APFA Web site for the lastest information and past editions of the APFA Hotline.

Please remember that there are 3,026 Flight Attendants currently on furlough at American Airlines.