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APPENDIX I SUPPLEMENTAL INTERNATIONAL AGREEMENT between AMERICAN AIRLINES, INC. and the FLIGHT ATTENDANTS in the service of AMERICAN AIRLINES, INC. as represented by the ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between American Airlines, Inc. (hereinafter known as the "Company") and the FLIGHT ATTENDANTS in the service of AMERICAN AIRLINES, INC., as represented by the ASSOCIATION OF PROFESSIONAL FLIGHT ATTENDANTS (hereinafter known as the "APFA"). WHEREAS, the Company and APFA desire to supplement and make certain exceptions to their Basic Agreement with respect to all International Operations and International Charters as hereinafter provided for in this Agreement, with the exception of the Military Airlift Command Operation. NOW, THEREFORE, the parties hereby agree to the following terms applicable to International Operations, provided the provisions of the Basic Agreement shall apply to International Operations except as modified herein: ARTICLE 1- RECOGNITION The provisions of Article 1 of the Basic Agreement shall apply to the International Agreement with regard to recognition. ARTICLE 2- DEFINITIONS The provisions of Article 2 of the Basic Agreement shall apply to the International Agreement with regard to definitions. ARTICLE 3 - COMPENSATION A. HOURLY BASE RATES OF PAY For each full month of service, a Flight Attendant shall receive an hourly base rate of pay for seventy ( 70 ) hours in accordance with his/her length of service as a Flight Attendant as follows: | Effective | 1/1/2003 | 5/1/2003 | 5/1/2004 | 5/1/2005 | 5/1/2006 | 5/1/2007 | 5/1/2008 | | 1st year | $24.34 | $20.54 | $20.85 | $21.16 | $21.48 | $21.80 | $22.13 | | 2nd year | $25.84 | $21.81 | $22.14 | $22.47 | $22.81 | $23.15 | $23.50 | | 3rd year | $27.55 | $23.25 | $23.60 | $23.95 | $24.31 | $24.67 | $25.04 | | 4th year | $29.03 | $24.50 | $24.87 | $25.24 | $25.62 | $26.00 | $26.39 | | 5th year | $33.51 | $28.28 | $28.70 | $29.13 | $29.57 | $30.01 | $30.46 | | 6th year | $37.23 | $31.42 | $31.89 | $32.37 | $32.86 | $33.35 | $33.85 | | 7th year | $41.40 | $34.94 | $35.46 | $35.99 | $36.53 | $37.08 | $37.64 | | 8th year | $43.86 | $37.02 | $37.58 | $38.14 | $38.71 | $39.29 | $39.88 | | 9th year | $45.57 | $38.46 | $39.04 | $39.63 | $40.22 | $40.82 | $41.43 | | 10th year | $46.98 | $39.65 | $40.24 | $40.84 | $41.45 | $42.07 | $42.70 | | 11th year | $48.69 | $41.09 | $41.71 | $42.34 | $42.98 | $43.62 | $44.27 | | 12th year | $50.33 | $42.48 | $43.12 | $43.77 | $44.43 | $45.10 | $45.78 | | 13th year | $52.25 | $44.10 | $44.76 | $45.43 | $46.11 | $46.80 | $47.50 | | 14th year | $53.15 | $44.86 | $45.53 | $46.21 | $46.90 | $47.60 | $48.31 | | 15th year | $54.05 | $45.62 | $46.30 | $46.99 | $47.69 | $48.41 | $49.14 | Current contractual rates to (decrease) increase by the following percentages, effective on the stated dates: | 5/1/03 | (15.6%) | | 5/1/04 | 1.5% | | 5/1/05 | 1.5% | | 5/1/06 | 1.5% | | 5/1/07 | 1.5% | | 5/1/08 | 1.5% | B. HOURLY INCENTIVE RATES OF PAY In addition to base pay, a Flight Attendant shall receive hourly incentive pay in accordance with his/her length of service as a Flight Attendant for hours in excess of seventy (70) hours as follows: | Effective | 1/1/2003 | 5/1/2003 | 5/1/2004 | 5/1/2005 | 5/1/2006 | 5/1/2007 | 5/1/2008 | | 1st year | $27.99 | $23.62 | $23.98 | $24.33 | $24.70 | $25.07 | $25.45 | | 2nd year | $29.72 | $25.08 | $25.46 | $25.84 | $26.23 | $26.62 | $27.03 | | 3rd year | $31.68 | $26.74 | $27.14 | $27.54 | $27.96 | $28.37 | $28.80 | | 4th year | $33.38 | $28.18 | $28.60 | $29.03 | $29.46 | $29.90 | $30.35 | | 5th year | $38.54 | $32.52 | $33.01 | $33.50 | $34.01 | $34.51 | $35.03 | | 6th year | $42.81 | $36.13 | $36.67 | $37.23 | $37.79 | $38.35 | $38.93 | | 7th year | $47.61 | 40.18 | $40.78 | $41.39 | $42.01 | $42.64 | $43.29 | | 8th year | $50.44 | $42.57 | $43.22 | $43.86 | $44.52 | $45.18 | $45.86 | | 9th year | $52.41 | $44.23 | $44.90 | $45.57 | $46.25 | $46.94 | $47.64 | | 10th year | $54.03 | $45.60 | $46.28 | $46.97 | $47.67 | $48.38 | $49.11 | | 11th year | $55.99 | $47.25 | $47.97 | $48.69 | $49.43 | $50.16 | $50.91 | | 12th year | $57.88 | $48.85 | $49.59 | $50.34 | $51.09 | $51.87 | $52.65 | | 13th year | $60.09 | $50.72 | $51.47 | $52.24 | $53.03 | $53.82 | $54.63 | | 14th year | $61.12 | $51.59 | $52.36 | $53.14 | $53.94 | $54.74 | $55.56 | | 15th year | $62.16 | $52.46 | $53.25 | $54.04 | $54.84 | $55.67 | $56.51 | Current contractual rates to (decrease) increase by the following percentages, effective on the stated dates: | 5/1/03 | (15.6%) | | 5/1/04 | 1.5% | | 5/1/05 | 1.5% | | 5/1/06 | 1.5% | | 5/1/07 | 1.5% | | 5/1/08 | 1.5% | C. REGULAR SCHEDULED MONTHLY GUARANTEE A regularly scheduled Flight Attendant shall be guaranteed seventy (70) hours provided for in A. above for the month. D. PARTIAL PAY FOR LESS THAN A FULL MONTH'S SERVICE (HOURLY RATE) 1. Pay Docking-Unpaid Status. A Flight Attendant in an unpaid status during the month shall be docked for the scheduled flight pay and credit hours of the trip or trips missed while in such unpaid status. A reserve on available days shall be docked three hours fifty-six minutes (3:56) of flight pay and credit for each day of availability while in such unpaid status during a thirty one (31) day month; four hours ten minutes (4:10) during a thirty (30) day month. A Flight Attendant on AVBL days shall be docked three hours fifty-three minutes (3:53) pay and credit for each AVBL day while in such unpaid status. E. RESERVE MONTHLY GUARANTEE/RESERVE OVERRIDE 1. Reserve Monthly Guarantee. A reserve Flight Attendant shall be guaranteed five (5) hours of incentive pay, as specified in B. above, in addition to seventy (70) hours as provided in A. above, for the month, provided that when a Flight Attendant is in a non-pay status during the month, such five (5) hours incentive pay shall be reduced by fifteen (15) minutes for each day in such non-pay reserve status. *2.  Reserve Override. *The provisions of these paragraphs have been waived by the Restructuring Participation Agreement dated May 1, 2003.  |  a. Reserve Override Applicability. A Flight Attendant, who has achieved three (3) or more years of occupational seniority will receive, in addition to all other compensation, zero dollars ($0.00) per hour for each paid flight hour of a reserve assignment, or for each hour of her/his applicable reserve monthly guarantee, whichever is greater.  b. Application to Carry-Over Hours. The hourly override of a. above will apply to the paid carryover hours of reserve assignments which originate in a reserve month and continue into a regularly scheduled month.  c. Application to Sick Make-Up, Optional Exchange and Limited Option II. The hourly override of a. above will not apply to Sick Makeup or Optional Exchange trip sequences but will apply to Limited Option II. | F. FLIGHT PAY CREDIT EARNED The provisions of the Basic Agreement, Article 3.F., shall apply. G. SPECIAL ASSIGNMENT The provisions of the Basic Agreement, Article 3.G., shall apply. H. TRAINING PAY The provisions of Article 3.H. of the Basic Agreement shall apply except that, for training away from base, Article 3.H.7.a., an International Flight Attendant may not be scheduled to remain on duty in any on-duty period in excess of fourteen (14) hours, and in no case be required to remain on duty in excess of sixteen (16) hours during any such on-duty period. A Flight Attendant may elect to exceed the on-duty training limitations in order to deadhead home in the same on-duty period provided, that the departure time of such deadhead is within the actual on-duty period limitation. I. HOLDING TIME (ORIGINATING FLIGHTS) The provisions of the Basic Agreement, Article 3.I., shall apply. J. GROUND TIME The provisions of the Basic Agreement, Article 3.J., shall apply. K. *NIGHT PAY. *The provisions of these paragraphs have been waived by the Restructuring Participation Agreement dated May 1, 2003.  The provisions of the Basic Agreement, Article 3.J., shall apply. L. UNDERSTAFFING PAY Should a flight depart with less than the number of Flight Attendants required by the Company's applicable published staffing guidelines, as issued pursuant to Article 9.B.2. and Appendix I, Article 9.B.2. of the Agreement, each Flight Attendant working the flight will receive compensation at the rate of five dollars ($5.00) per hour, for each hour actually flown (block to block), or fraction thereof for each Flight Attendant missing. Such understaffing pay, which shall be automatic/automated and shall require no action on the part of the Flight Attendant for payment, shall be in addition to all other applicable compensation, including but not limited to Ground/Holding pay. M. PURSER POSITIONS  | 1. Purser Position a. The Purser position on multi-aisle widebody aircraft shall receive a premium of three dollars ($3) for each hour actually flown, in addition to all other compensation. b. The Purser position on single-aisle aircraft shall receive a premium of two dollars ($2) for each hour actually flown, in addition to all other compensation. 2. Purser Pay For Trips Not Flown a. Purser pay as specified above shall apply to a Flight Attendant while on paid sick leave, special assignment and training. b. Purser pay as specified above will apply to a Flight Attendant while on vacation, provided that in the fiscal year in which the vacation is scheduled, the Flight Attendant met the annual Purser program participation requirement as outlined in Article 34. c. Notwithstanding b. above, a Purser who received her/his initial Purser qualification after May 1 will receive Purser pay as specified in 1. above while on vacation during the first fiscal year following her/his initial Purser qualification. | N. FOREIGN LANGUAGE The provisions of the Basic Agreement, Article 3.N., shall apply. O. PURSER/FOREIGN LANGUAGE DRAFTING PAY The provisions of the Basic Agreement, Article 3.O. shall apply. P. LOST/STOLEN PAYCHECKS The provisions of the Basic Agreement, Article 3.P., shall apply. Q. PRORATION OF INTERNATIONAL PAY International base pay shall be pro-rated on a daily basis for any month during which a Flight Attendant is assigned to or relieved from the International Operation. For the period of service in the International Operation, such Flight Attendant shall be paid his/her pro-rated International base pay or actual earnings, whichever is greater. R. RANDOM DRUG/ALCOHOL TESTING PAY The provisions of the Basic Agreement, Article 3.Q., shall apply. S. MIXED CO-TERMINAL STIPEND The provisions of the Basic Agreement, Article 3. R., shall apply. T. GALLEY PAY AND POSITIONS  | 1. Galley Pay a. Multi-Aisle Widebody Aircraft. All multi-aisle widebody aircraft bid Galley positions shall receive a premium of eight-eight cents ($.88) per hour for each hour actually flown, in addition to all other compensation. b. 757 AFT Galley Pay. The aft Galley position on 757 aircraft will receive a premium of eight-eight cents ($.88) per hour for each hour actually flown, in addition to all other compensation. c. Galley Pay for Trips Not Flown. Galley pay as specified above will apply to a Flight Attendant while on paid sick leave, vacation, special assignment and training. | 2. Galley Position(s)  | a. Minimum Number of Bid Galley Positions. The Company will establish a minimum number of bid galley positions on all multi-aisle wide-body aircraft premium paid galley positions which will include; | | AIRCRAFT CONFIGURATION | SERVICE | GALLEY POSITION(S) | | One (1) Class | One (1) Class | One (1) | | Two (2) Class | Two (2) Class | Two (2) | | Three (3) Class | Two (2) Class | Two (2) | | Three (3) Class | Three (3) Class | Three (3) | b. Establishment of 757 AFT Galley Position. The Company will establish a bid premium paid aft Galley position on all 757 aircraft. c. Duties and Qualifications. All bid Galley position(s) will be worked by Galley Flight Attendants. The Company will define the duties and qualifications of the Galley premium paid positions. Flight Attendants who perform galley duties may also perform cabin duties.  | d. Galley Position(s) Awarded in Order of Seniority. The Galley positions will be awarded in order of seniority. | *U. *LONGEVITY BONUS. *The provisions of these paragraphs have been waived by the Restructuring Participation Agreement dated May 1, 2003.  The provisions of the Basic Agreement, Article 3.U., shall apply. *V. HOLIDAY PAY *The provisions of these paragraphs have been waived by the Restructuring Participation Agreement dated May 1, 2003.  In addition to all other compensation, a working Flight Attendant shall be paid for work performed on holidays, as defined in Art. 2.P. of this Agreement, in accordance with the following:  1.  Regularly Scheduled Flight Attendant. Hourly rate of pay times 1.024, times the credited flight time for the trip sequence, divided by the number of hours away from base, times the number of hours away from base falling within the holiday.  | Example: A Flight Attendant earning $48.37 per hour flies a trip sequence which produces 17 hours of credited flight time and keeps the Flight Attendant away from home (signin to debrief) for 48 hours, of which 24 hours falls on the holiday: $48.37 hourly rate X 1.024 = $49.53 $49.53 X 17 hours credited flight time = $842.01 $842.01 divided by 48 hours away from home = 17.54 17.54 X 24 hours on holiday = $420.96 Holiday Pay = $420.96 |  |  2.  Reserve  a.  Released Prior to a Holiday. If released prior to midnight the day before a holiday, a reserve Flight Attendant receives no holiday pay;  b.  On Reserve Status, No Flying Performed. If on reserve status and does not fly, a reserve Flight Attendant receives 4:10 hours ( for a 30 day contractual month) or 3:56 hours (for a 31 day contractual month) times the reserve's hourly rate times 1.024.  c.  On Reserve Status, Flying Performed. If on reserve status and flies a trip sequence, a reserve Flight Attendant receives the greater of either subparagraph b. or the regularly scheduled Flight Attendant computation as described in 1. above, except that the reserve Flight Attendant's hourly rate of pay shall be multiplied by 1.024. | ARTICLE 4 - EXPENSES A. EXPENSES 1. Flight Assignment. Flight Attendants on duty or when away from their base station on regular assignment shall be reimbursed for meals and incidentals at the rate of: $1.75 per hour; prorated to the nearest minute, from the reporting time as set forth in Article 7.L., through the debriefing period following the trip that returns the Flight Attendant to his/her home base station. Flight Attendants must fly (including deadheading) to be covered under the provisions of this paragraph. |