ARTICLE 35 -GROUP LIFE AND HEALTH BENEFIT PLAN*

The Group Life and Health Benefits Plan for Flight Attendants shall be as follows:

A. LIFE INSURANCE

For an employee whose base monthly salary is $1,500 or over, his/her basic coverage shall be two (2) times his/her base annual salary taken to the next higher multiple of $100, but not more than $70,000.

1. Coverage for such an employee under Contributory Plan I shall be 50% of his/her Basic Coverage;

2. Contributory Plan II shall be 100% of his/her Basic Coverage;

3. Contributory Plan III shall be an amount equal to his/her Basic Coverage, plus one (1) times his/her base annual salary taken to the next higher multiple of $100.

B. MEDICAL AND DENTAL PLAN

The Medical and Dental Plan for active Flight Attendants shall be the Medical and Dental Plan in effect as of May 1, 2003, and the changes effective January 1, 2004, which are listed in Appendix SS, Letter-I, dated September 30, 2003, shall be incorporated into this Agreement.

Effective May 1, 2003, Flight Attendants will be required to meet a minimum annual hour threshold of 420 hours on a rolling twelve (12) month Alook-back@ basis in order to be eligible for Company subsidized health benefits. Flight Attendants who do not meet the 420 hour threshold will have the option to maintain health benefits by assuming the Company=s applicable portion of the cost in addition to their applicable employee contributions. See Letter of Agreement, Appendix SS.

C. RETIREE HEALTH CARE

1. Flight Attendants who retire prior to January 1, 2002, and who are eligible for retiree medical coverage, are not required to contribute toward the cost of the Retiree Medical Plan.

2. Effective January 1, 2002, Flight Attendants will participate in American's prefunding program under the terms and conditions in effect for American's ground personnel as of June 30, 2001, whereby employees contribute toward the cost of Retiree Medical Plan coverage during their active status. Flight Attendants who elect not to prefund will not be eligible for Retiree Medical Plan coverage at retirement.

3. Flight Attendants who retire after January 1, 2002 must continuously participate in prefunding for at least the ten years immediately preceding retirement to receive retiree medical coverage. However, Flight Attendants who retire before January 1, 2012 who have prefunded continuously from January 1, 2002, and who otherwise meet the age and service eligibility requirements for Retiree Medical Plan coverage, will receive retiree medical coverage even if they have not prefunded for the full ten years.

4. Flight Attendants who were on the Company's active payroll, on a union leave of absence, or an approved leave of absence for other reasons on September 12, 2001 will be offered the opportunity to prefund Retiree Medical Plan coverage at the Table 1 rate in effect when they are first eligible to begin prefunding (at age 30 and with at least one year of service).

* Refer to Appendix SS

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5. Flight Attendants hired after September 12, 2001 who subsequently meet the eligibility requirements (age 30 and at least one year of service) will be offered the opportunity to prefund their Retiree Medical Plan coverage at the applicable Table 2 age-based rate, based on their age at the time they begin prefunding.