Representing the Flight Attendants
of American Airlines

Representing the Flight Attendants of American Airlines

10.31.13d – (LAA) – Profit Sharing News!

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APFA Special Hotline – Profit Sharing News!

October 31, 2013

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Late today, we learned that Flight Attendants are entitled to receive an allocation of profit sharing even if the merger closes before the end of this year. Up until now we understood that if the merger was completed before December 31, 2013, we would not be eligible for the profit sharing that is provided for in the LBFO. Our understanding was based in part upon the fact that as soon as the merger occurs, the LBFO would be replaced by the Conditional Labor Agreement which does not contain profit sharing. We were led to believe that once there was a merger and the CLA went into effect, the Flight Attendants would no longer be eligible for this benefit. Apparently, the Company has taken a more reasonable and magnanimous approach. In fact, American has confirmed that if the merger happens this year, we will receive a pro rata allocation of profit sharing. For example, if the merger were to close on December 1, 2013 we would receive 11 months worth of a full allocation. If an individual’s full allocation were $1,000, he or she would receive 11/12 (91.66%) or $916.66. Please note, this is an example only.

Keep in mind that the only possibility of the merger happening this year is if the Department of Justice settles its anti-trust claims against American and US Airways.  Absent a settlement in 2013, the case will continue into 2014 and will be resolved either through a settlement or a court decision which is not expected before January 19.  If the merger takes place in 2014, Flight Attendants will receive their full allocation of profit sharing.

AmericanAirlines US Airways 

Leslie Mayo
APFA National Communications Coordinator



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