06.13.03

Hello. This is George Price, APFA National Communications Coordinator, with the APFA Hotline for Friday, June 13, 2003.

The APFA Executive Committee authorized the National Ballot Committee to ballot the APFA membership in order to determine whether to keep the Underfly Provision as it appears in the Restructuring Agreement or choose one of two other alternatives. Ballots were be mailed to all members on June 12, 2003, and must be returned no later than 0900 CDT on July 11, 2003. The ballot packet contains a description of each option.

The three options are as follows:

Option one is to retain Article 3.W. and Appendix I, Article 3.W. as it appears in the Restructuring Agreement (or also know as the “Underfly provision”). This option would not result in any Flight Attendant overage.

Option two includes extending the domestic duty day to 13 hours scheduled and 15 hours maximum for departures between the hours of 0600 and 1759; increasing the duty aloft to 8:59 from 8:00, an E-time of 1:2 from the current 1:1 3/4, and an improvement to the average duty day of 5 hours from the current 4:45. An overage of approximately 208 Flight Attendants is associated with this choice.

Option three includes paying sick leave at a flat rate of 4 hours per day for both regular Flight Attendants and reserves, E-time of 1:2 from the current 1:1/3/4, and a change in the average duty day of 5 hours from the current 4:45. An overage of approximately 309 Flight Attendants will result from this choice.

The complete contract language of each of the choices is included in the ballot package. In addition, the language is posted on the APFA Web site.

If either choice is ratified that results in an overage of Flight Attendants, and the Company elects not to absorb such an overage, the Company must offer Overage Leaves and Partnership Flying in compliance with Article 16 of the contract prior to furloughing any Flight Attendant. Additionally, the Company must, in accordance with federal law, provide each Flight Attendant “subject to furlough” and the APFA with a 60-day written notice of a pending reduction in force.

Base meetings continued this week in Chicago, Dallas/Ft. Worth, and St. Louis. Meetings continue next week in Boston on June 17th, New York on June 18th, and Miami on June 19th. Times and locations can be found on the web site.

Senator Kit Bond of Missouri held a Congressional hearing on Thursday, June 12th on the issue of seniority integration of former TWA employees into American Airlines. APFA filed a written statement outlining our position on the integration issue. The text of APFA President John Ward’s statement to the Subcommittee is posted on the opening page of the APFA Web site.

On a related note, a court hearing is scheduled in New York for Thursday, June 19th, in the District Court of New York on issues directly related to the seniority integration issue.

The U.S. House of Representatives passed the FAA Reauthorization bill, which contains provisions for Flight Attendant Certification. The Senate is expected to vote on this bill soon. If the Senate passes the bill, it will go to Conference Committee for reconciliation and then back to the full House and Senate for a vote on the final version. The APFA has worked with other Flight Attendant unions for some time to ensure that Flight Attendants would one day join other aviation workers such as Pilots, Mechanics, Dispatchers, and even Parachute Packers among the ranks of certified aviation workers. We are well on our way with this week’s votes. Once through Congress, the bill will go to the President for his signature. He is expected to sign it. More information on certification will be included in the June issue of Skyword.

Furlough Assistance Meetings continue to be conducted throughout the system. A complete list of scheduled meetings can be found on the APFA Web site under “calendar,” “Furlough Assistance Events” on the Furlough Page, and the base pages of those bases affected. In addition, a list of meeting times, dates, and locations will follow at the end of today’s hotline message.

The APFA has received several questions regarding unemployment benefits from Flight Attendants who will be furloughed July 2, 2003. Flight Attendants should direct their specific questions regarding which state to file unemployment claims and deadlines to file in order to qualify for the 13-week extension of benefits over and above the standard 26 weeks to their local Work Force Commissions. The Furlough Page on the APFA Web site has links to many government agencies including each state’s unemployment offices. This is a good place to start.

American notified the APFA this week that their policy regarding the distribution of 401K funds to furloughed employees is under review to ensure that the practice is in keeping with IRS guidelines. Once a determination is made, we will include the information on this hotline and the Furlough Page of the APFA Web site.

The APFA Hotel Department has received confirmation from the Company that IDF and JFK crews will return to their respective long layover hotels in Zurich. The return will be effective June16, 2003.

From the Contract desk:

Eligible Flight Attendants who accrued longevity pay through April 30, 2003 are entitled to the accrued balance. Flight Attendants whose anniversary date falls after April 30th will receive accrued longevity pay in the 30th paycheck in the month following their anniversary date. Again, this will only reflect the accrued amount through April 30, 2003.

In the next two weeks, APFA will be taking the administration of the APFA Web site in-house. This will not only reduce the overall costs associated with the administration of the site, but it will also allow us to make needed changes and upgrades. During the transition period, there may be some disruption of service to the site including the APFA Bulletin Board. We will outline the changes planned for the site and the timeframe for the transition in next week’s hotline.

The following are scheduled retirement seminars:

STL. June 18th and 23rd. 0900, 1100, and 1400. STL Training Room, Mezzanine Level above gate C27. First come, first serve basis.

SFO. June 19th. 1100. SFO Training Room, Mezzanine Level. First come, first serve basis.

From the APFA Scheduling Department: For both Domestic and International regular Flight Attendants, guarantee and base pay are now 70 hours. Incentive hours will not appear on Flight Attendants HI1s. Qualified hours that appear in the GTD column over 70 hours will be the hours paid at incentive rates. Furlough Assistance Meetings:

SFO. June 23rd. 1100. SFO Training Room-Mezzanine Level.

DFW. June 26th. 1000 at the Flagship University. Eagle Room 3E39 and 1530 at the Yandry Center at DFW Airport, Terminal C.

Washington (DCA). June 19th and June 26th. 1100. Ramp Service Conference Room.

Chicago. June 24th. 1000-1400. Group Room across from K-1.

STL. June 18th and June 30. 1000 and 1400. TWA-LLC Training Center Auditorium. There will be a job fair in St. Louis on June 24th at the Holiday Inn Airport North from 0900-1400.

LAX. June 26th. 0900 and 1300. Flight Service Conference Room, Concourse Level.

In Industry News:

In a presentation to the Merrill Lynch Global Transport Conference on Wednesday, AMR CEO Gerard Arpey said AMR would need a combination of improved revenue and additional financing in the future to meet liquidity needs. In a recent filing with the Securities and Exchange Commission, Arpey said he expects to meet liquidity needs through a combination of financing and asset sales.

Northwest began contract concession talks with its Pilots and ground workers this week. It is looking for $950 million in annual savings through labor concessions.

Delta Pilots are expected to soon approve discussions with the airline on concessions. The Pilots may want to review details of Delta’s cost-cutting plans prior to entering talks on concessions.

For more industry news, visit the “News and Events” Page on the APFA Web site.

That is it for this edition of the APFA Hotline. Please visit the web site for the latest information and past editions of the hotline.

Remember, there are 3,026 American Airlines Flight Attendants currently on furlough.