07.18.03 – (LAA) – Turnaround Plan Objectives, Downsizing of STL, No Additional Furloughs, Cabin Ready Procedures

Today is Friday, July 18, 2003. This is George Price, APFA National Communications Coordinator, with a special APFA Hotline Update.

The Company has informed the APFA there have been changes made to the master bidsheet affecting reserve selections in MIA, LGA, LAX, BOS, and ORD. To view these changes, please refer to the Flight Service Web site.

Now, please stay on the line for the remainder of the APFA Hotline.

Hello. Today is Friday, July 18, 2003. This is George Price, APFA National Communications Coordinator with the APFA Hotline.

On Wednesday, July 16th, American Airlines made a series of announcements regarding second quarter financial results and the Turnaround Plan Objectives. The airline announced that it would reduced the number of flights American, American Eagle, and American Connections offers from St. Louis from 417 flights per day to 207 flights per day by November 1, 2003. American Airlines will have 53 daily departures by November 1. This will permit it to strengthen its hubs in DFW and ORD.

American has no plans to close its Flight Attendant crew base in St. Louis. However, as a result of the downsizing of the hub, 130 Flight Attendants forced into STL will, in accordance with Article 16.D.3, page 187 of the contract, be given the opportunity to return to the bases where they were assigned prior to being forced into STL. Reinstatement will be offered to 80 Flight Attendants to DFW, 40 to LAX, and 10 to MIA. This will be accomplished in seniority order among those offered reinstatement. An HI6 message was sent to STL Flight Attendants outlining the procedures to proffer to return to their original base. Requests for reinstatement to DFW, LAX, and MIA must be submitted by July 23, 2003. Failure to respond could result in forfeiture of reinstatement rights. Flight Attendants who are granted reinstatement to their original bases will report to those bases in early August. In correspondence to Flight Attendants in STL, the Company also announced that it would only need 600 Flight Attendants by November 1, 2003. This will be a combination of Flight Attendants in the STL base flying TWA-LLC equipment and SLT base flying AA equipment. There are currently 925 Flight Attendants based in STL. Additional information on the STL base and reinstatement to former bases can be found on the opening page of the APFA Web site. As more information on the STL base becomes available, we will update the hotlines and the web site.

The Company’s announcement on Wednesday did not include information on any additional Flight Attendant furloughs. American also did not change the previously announced fleet plan, which calls for the grounding of 57 planes in 2003 and 57 planes in 2004.

On Wednesday, American also announced second quarter financial results. The airline lost $75 million after special items such as a $358 million cash payment from the TSA as part of the 2003 Emergency Wartime Supplemental Appropriations Act. These results are substantially better than the previous quarter’s loss of $1.04 billion and the $720 million loss in the second quarter of 2002.

Late on Friday evening, July 11, 2003, the APFA National Ballot Committee certified the results of the Underfly balloting. Option 2 was chosen by a large majority of the members who cast ballots. For the complete base-by-base breakdown of the balloting and additional information on the provisions of Option 2, please visit the APFA Web site. Due to Company programming issues, the provisions of Option 2 will not be implemented until September.

APFA has reached an agreement with the company regarding health plan redesign changes per Attachment K of the Restructuring Agreement. Specific details will be provided next week.

From the Safety Department: Flight Attendants should review American’s “cabin ready” procedures. Please be sure that all cell phones are off and all passengers are seated prior to advising the Captain that the cabin is ready for pushback.

From the Hotel Department: The Company has informed us that layovers in Glascow will return to the long layover hotel at the end of July. We hope to have news on the Rome layover shortly.

The APFA has received several calls from Flight Attendants furloughed on July 2, 2003, informing the union of problems they were having with the processing of their unemployment claims and receiving their final paychecks. APFA has been working with the Company to identify those with specific individual payroll problems. In most cases, those problems were resolved. The union has also been working with various state unemployment offices and American to ensure that the necessary information has been filed by the Company to begin processing unemployment compensation claims.

Furloughed Flight Attendants should be aware that resources are available through the “One Stop Centers” provided by the unemployment offices and work force development offices in each state. Individuals affected by reduction in force may use the resources available such as fax machines and computers free of charge, and may also research job opportunities, grant availability, educational opportunities, and other areas of interest at the centers. APFA is currently working with the Department of Labor to create an easy way to look up the location of One Stop Centers. Once this has been accomplished, we will put it on the Furlough Page of the APFA Web site. Until then, please call your state’s unemployment office or work force development office for the location of the One Stop Center nearest you.

The APFA Board of Directors will meet on Monday, July 28, 2003 at the Radisson Hotel South of DFW Airport. The meeting will begin at 1000. The purpose of this meeting is to address APFA budgetary concerns.

In Industry News:

Delta announced this week that it would furlough as many as 1,050 Flight Attendants this fall as a result in a seasonal drop in traffic. Flight Attendants at Delta subject to furlough received their WARN Letters this week notifying them of the pending reduction in force.

Flight Attendants at Midwest this week ratified a cost-cutting agreement with their airline. Flight Attendants represented by AFA agreed to $5 million in concessions over a five-year period. Midwest has approximately 400 Flight Attendants.

Mechanics at United this week voted to join the Aircraft Mechanics Fraternal Association or AMFA. Nearly 64% of United Mechanics elected to end their affiliation with the IAM.

Continental said on Monday that it would defer delivery of 36 Boeing 737-800s from 2005 through 2007. The airline also said it was negotiating with Boeing to defer delivery of the 11 remaining 757s it has on order. Industry analysts have said that any such deferral could signal the end to the production of the 757.

For more information on the airline industry and American specifically, please visit the “News and Events” page of the web site.

We would like to close this week’s hotline by remembering the crew and passengers of TWA Flight 800 who died on July 17, 1996.

Please visit the web site for the latest information and past editions of the hotline.

Remember, there are 6,150 American Airlines Flight Attendants currently on furlough.

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