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8.13.02 – (LAA) – AA Announces Changes to Business Plan

This is APFA President John Ward with a special edition of the APFA HotLine for Tuesday, August 13.

American Airlines today ended weeks of speculation by formally announcing a number of changes intended to “position American for long-term competitiveness and profitability.” I’d like to address how today’s announcements may affect flight attendants.

First, the Company plans to reduce capacity by nine percent by November versus Summer 2002. As part of this planned reduction, the Company will accelerate the retirement of all nine TWA 767-300’s to November. The Company has provided APFA with formal, written notice that they presently anticipated an overage by November 1 of approximately 2,550 flight attendants and that layoffs may be necessary by October 13. Keep in mind, however, that this notice, which is required under the law, does not necessarily mean that 2,550 flight attendants will be furloughed. Fortunately, we have contractual provisions in our Collective Bargaining Agreement that will allow us to mitigate, to the extent possible, these projected overages. I’m referring, of course, to the Overage Leave of Absence and Partnership Flying language in Article 16 and Appendix F. Prior to furloughing any flight attendants, the Company will proffer Overage Leaves and Partnerships. They’re still in the process now of determining the projected overages by base, and once that’s complete in early September, we’ll have a clearer picture of how many Overage Leaves will be offered at each base.

Second, I know, many of you are wondering how the TWA Seniority Integration Agreement will affect furloughs should that become necessary. The Agreement provides that the Company implement a combined seniority list the earlier of: (1) the first day of the calendar month immediately following the date on which the first TWA-LLC flight attendant works in an inflight cabin position at American; or, (2) December 31, 2002. Based on the fact that the Company plans to begin Integration Training for the first TWA-LLC class later this month, a combined seniority list will be in place by October 1, 2002.

Other changes announced today include the accelerated retirement of the F-100, beginning in the third quarter of 2003 and continuing through the third quarter of 2005; the reconfiguration of the 767-300 to a two-class aircraft, configured with 30 Business Class and 182 Coach seats; and the standardization of the 777 to either a 16 or 18 First Class, 35 Business, and 185 Coach configuration. In addition, American announced today that it intends to make adjustments at the DFW hub similar to those made in Chicago in April that will allow for the more efficient utilization of people, gates, and aircraft. This concept, known as “de-peaking,” is expected to result in reduced costs and improved productivity. Finally, the Company announced today that it’s deferred 35 aircraft deliveries in 2002.

I want you to know the APFA will be working diligently in the coming weeks in an attempt to reduce these projected overages just as close to zero as we possibly can. Please be patient and know that we’ll share with you all the details just as soon as we’re able to. In the meantime, please continue to call this Hotline and check the web site often.

Thanks for calling.

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