12.30.11 – (LAA) – Bankruptcy Update

Weekly Hotline

For the week ending Friday, December 30, 2011

BANKRUPTCY UPDATE

In yesterday’s Hotline we mentioned that the Company’s business plan will be the centerpiece of this bankruptcy. It is critical that American not be allowed to demand concessions from labor before it has presented a plan that our advisors have had an opportunity to scrutinize and challenge. Put simply, the Company must first offer a valid business plan before it initiates negotiations under Section 1113 of the Bankruptcy Code. Fortunately, we are not alone in the belief American should adhere to this sequence. In a statement filed with the Bankruptcy Court on December 20, the Creditors Committee said that it ìbelieves that the first major step towards a consensual, feasible reorganization is for the Debtors to work with the Committee to develop a viable strategic business plan as the vehicle for reaching agreements with stakeholders regarding balanced and shared financial sacrifices. This plan must be an urgent early priority developed well in advance of the Debtors seeking to make important strategic and tactical decisions.î

Unless and until American has a plan that can realistically support a successful reorganization it should not even consider looking to the Flight Attendants to contribute a single dollar more than the $3 billion in concessions we have already sacrificed. American should understand that whatever “savings” it tries to needlessly extract from us is far outweighed by one indisputable fact – the value of the Flight Attendants’ morale is priceless.

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Below are the Bankruptcy Informational Base Visits currently scheduled:

Tuesday, January 3 – DFW
Yandry Center
DFW Airport, Terminal C
1100-1400
(Retirees, please use your Retiree ID Card for Security Checkpoint access. You may also obtain a Gate Pass from the AA Ticket Counter.)

Monday, January 9 – MIA
Miami International Airport Hotel (Hotel MIA)
Outside Terminal E Security Checkpoint
1100-1400

Monday, January 16 – LAX
Location: Ayres Hotel Manhattan Beach/Hawthorne/LAX
14400 Hindry Ave.
Hawthorne, CA 90250
Renaissance Ballroom
1100-1400

Meetings are open to all members in good standing. Retirees wishing to attend one of the Base Meetings, and were dues current at the time of retirement, please send an e-mail to [email protected] so that eligibility can be verified in advance. Only Retired Flight Attendants need to contact APFA prior to the meeting.

During these meetings, we will share what we know now and what to expect; we will address your concerns and answer your questions. Iíll be joining members of the APFA Negotiating Team, Retirement Department, Legal Counsel and your Local Base Leadership. As some of the bankruptcy proceedings may be scheduled suddenly and we can expect last minute changes, additional Bankruptcy Information Base Visits will most likely be announced on short notice.

Q.WHY DID I GET AN EMAIL ABOUT CHANGES TO RETIREMENT BENEFITS?

A. Before AA filed for Bankruptcy, there were four basic ways you could elect to get your pension:
1. Single life annuity (a check every month until you die.)
2. Joint and Survivor (a check every month for you and someone else you choose until you are both dead.)
3. Guaranteed Period Certain (a check every month for the longer of: until you die or 10/15/20 years.)
4. Level Income Option (more up front till Social Security age, then less for the rest of your life.)

IRS regulations prohibit the company from offering that Level Income Option (or a lump sum, which we do not have) if the sponsoring company is in bankruptcy. So, that option is no longer available. The company is also required to notify you that option is no longer available. That is what that email is trying to tell us.

If you already retired and elected this Level Income Option, your payments will continue as normal.

If you have any additional questions, please contact Patrick Hancock in the Retirement Department, [email protected] or 817-540-0108 ext. 8490.

RUMOR CONTROL

Rumor – I heard that if I retired within 60 days of the bankruptcy filing that I will retire under the old rules and keep all of my benefits and pension. Is that true?

No, You do not “lock-in” your benefits by retiring within the first 60 days after the bankruptcy. Both Retirees (current and future), and Active Flight Attendants are subject to the decisions made during the bankruptcy process. No one should be making life decisions based on rumors. Please get the facts. A thorough Q&A document is posted on the Bankruptcy Information page of APFA.org. Questions concerning retirement should be sent to [email protected].

FROM THE BALLOT COMMITTEE
[email protected]

Ballots for the APFA National Officer Election were mailed last week. Balloting opened 10:00am CST on Monday December 19, 2011 and all ballots must be cast by 10:00am CST on Wednesday January 18, 2012.

Should you have any questions, please contact the National Ballot Committee at 817-540-0108 ext 8311 or email at [email protected]

You must be dues current by 5:00 p.m. CST on January 13, 2012, and any dues promissory note/payment plan must be active by December 19, 2011 in order to have your vote counted for the APFA National Officer election ballot count on January 18, 2012.

For any questions concerning your dues status, please contact the APFA Dues Department at 817-540-0108 ext 8151 or email [email protected].
APFA National Ballot Committee

FROM THE APFA EAP DEPARTMENT
[email protected]
817.540.0108 x8701

It’s the time of year for celebration and socializing with friends. Your APFA EAP DESK would like to remind you that it is always a good idea to keep your beverage with you at all times while at any social gathering. This will ensure that you drink only what you intend to drink. We wish you all a safe and happy new year.

RETIREMENT BRIEFINGS

APFA Retirement Specialist Patrick Hancock will be in NY conducting two retirement briefings in January.

JFK – January 24 in the 4th Floor Conference Center (formerly knows as the Mark Dupont room) from 1100-1400

LGA -January 25 in the 3rd floor Conference room from 1100-1400

The seminars are open and useful to all Flight Attendants from all bases. To make the most of these briefings, print and bring your personal pension estimate and plan calculation formulas from JetNet.

USE THEM OR LOSE THEM

Remember that your 2011 uniform points do not carry over into the New Year. All points will expire on December 31, 2011. Place your order with VF Imagewear today so that you donít miss the deadline.

HOLIDAY OFFICE CLOSURE

The APFA Headquarters office will be closed on Monday, January 2, 2012 in observance of New Year’s Day. Regular office hours will resume on Tuesday, January 3. On behalf of all the APFA Representatives at Headquarters and in the field, the Communications office wishes everyone a safe and happy holiday.

Weíll be back on Monday with another Update.