3.02.07 – (LAA) – Performance Share Plan, Lavatory Policy, Joint Security Committee

This is Leslie Mayo, National Communications Coordinator, with the APFA Hotline for Friday, March 2, 2007.

From the APFA Communications Department: For those of you who are unfamiliar with the Performance Share Plan (PSP), it is the “updated” version of last year’s PUP (Performance Unit Plan) that rewards just over 800 senior managers of AA with shares of stock to the tune of about $200 million this year. As each and every employee will recall, this issue was a major bone of contention among the employees last year and resulted in the three unions filing a Presidential Grievance. This year, the PSP will award even more money on April 19, 2007, – in shares of stock – with a strike date of April 18, 2007. Management is not yet willing to disclose the total number of Level 5 and above members of management receiving this award nor are they ñ to date ñ willing to share the amount of shares awarded in this 2007 windfall. APFA has estimated that the total value of stock awarded will be about the same amount of money this Company has made, in annual profit, since the year 2000.

Last week we posted a public poll on www.apfa.org that posed a question related to the upcoming PSP payout. We placed this poll on the public side of www.apfa.org and asked how you would spend $200 million. Considering the fact that this poll was not on the secure side of www.apfa.org we anticipated a few people – other than APFA members – may weigh in with their two cents on how best to spend this money. However, the response was astounding. As of this writing, 352 people voted to keep the $200+ million as is and divide it among the senior managers who are currently set to receive it. For several days at the beginning of this polling, that was the prevailing response leading most of us to believe one thing – that those who were set to receive this money were attempting to justify it by participating in the Flight Attendants’ Union poll. We venture to guess that not one member of APFA enjoyed giving up $340 million in annual wages, work rules and benefits in 2003, 2004, 2005, 2006, and now 2007 and that given the opportunity to decide what to do with an amount totaling more than half the amount of our annual concessions, we would not elect to award $200 million in AMR stock to 800+ members of senior management.

After one week, the poll has been telling. As of Friday morning, 595 of those participating in the poll (50%) have chosen to divide $200 million among ALL employees, 111 people want the company to buy new aircraft, 76 people opted to put that money into our pensions, 26 want the company to clean our current aircraft, 24 desire new FA uniforms and one wishes AA would build more Admiralís Clubs. Thank you to all Flight Attendants who took the time to visit www.apfa.org and participate in this poll. Please keep an eye on the poll in the coming weeks for more questions related to Executive Bonuses and the state of OUR Company.

Also, on Thursday, March 8, 2007, APFA will publish an online membership opinion survey behind the members-only section of www.apfa.org. This poll will be posted for one month and is sponsored by the University of North Texas. Please take the time to fill out this very important multi-question survey. This membership opinion survey is designed for APFA members only and is completely separate from the public poll currently available at www.apfa.org relating to Executive Compensation.

From the APFA Safety Department: We have received many inquiries from Flight Attendants regarding the recent lavatory policy change made by American Airlines. To clarify, effective March 1, 2007, AA will now allow main cabin passengers to use the First Class lavatories on domestic and outbound international flights. The TSA instituted a security policy shortly after 9/11 that only applied to inbound international flights into the U.S. that restricted lav use to a passenger’s ticketed cabin only. AA instituted a system wide customer service lav policy similar to the TSA international in-bound U.S. rule. Occasionally, PAs were made on domestic flights stating this was a TSA policy when in fact it was not. Other carriers do not utilize a restrictive domestic lav policy, which assisted in the confusion on board AA flights as a result of the inconsistency. In the past, AA’s lav policy has led to passenger misconduct, local law enforcement meeting/arresting passengers and Flight Attendants being verbally and physically assaulted by non-compliant passengers.

The Joint Security Committee consisting of members from all three unions and AA, reviewed AA’s current lav policy and strongly encouraged it to change its policy. Recently-issued Bulletin #58 contains detailed information on the changes AA has made. The Company will continue to look at purchasing mesh curtains to limit movement between cabins.

And from the APFA Retirement Dept. the next FA retiree seminars will be held March 5th at DFW Airport’s Yandry Center. Sessions will be held at 8am and 1pm. All FAs are welcome to attend. Please bring the following documents to the seminar: From Jetnet.aa.com click on BENEFITS – RETIREMENT PLANNING – MY PENSION – REQUEST/VIEW ESTIMATES. Print that document then click on the highlighted link called PLAN CALCULATION FORMULAS. Print that document as well.

From the APFA Contract Department: Primary vacation bidding is currently open and bids will close at 8:00 a.m. Central Time on Wednesday, March 7. Please be sure to bid a sufficient number of vacation slots to ensure you hold the vacation you desire during primary bidding. If you do not hold one of the slots in your primary ballot you will be considered “Not Enough Bids” and you will then bid for your vacation based on the remaining slots during the secondary round, which traditionally have been more limited. Secondary vacation bidding will open on March 15 and close at 0800 Central time on Friday, March 23. You will be able to split your vacation if you accrued 19 or more days of vacation. This is true even if your actual accrual is less than 19 days as a result of PVDs.

Just a note about the new Windows Vista OS; the Company has not yet been able to program SABRE for use with Vista. Please be sure you have an alternate way to access SABRE in the event you plan to use the new Operating System.

Bankruptcy Watch: The Comair pilots’ T/A vote is due today. If they decide not to ratify their Agreement, the Company could impose cuts beginning Sunday.

Meanwhile, at Northwest Airlines, the pilots’ union has filed a lawsuit against Northwest for attempting to bargain directly with the pilots by offering gift cards for good attitude, and raising hourly pay according to a “success-sharing” program. All of this has been instituted as a result of Northwest Airlines’ bright financial outlook. ALPA has stated that it is “not against an incentive program to reward pilots for a job well done,” but that the company should bargain with the union on behalf of all Northwest pilots.

Fuel Watch: As of March 1st, a barrel of crude oil cost $62.00. The crack spread price was $16.45. This brings the total for one barrel of jet fuel to $78.45 – about $4.50 more than last week’s price. One year ago, jet fuel was $78.69 a barrel – nearly the same price as it is today.

Please remember we have 2,390 American Airlines Flight Attendants on furlough.

That’s it for this week. Thank you for calling the APFA Hotline.