Monday, Oct. 20, 2008

Fellow Eagle pilots:

This afternoon, the four parties to Letter 3 received Arbitrator LaRocco’s decision in the remedy phase of the TWA Employment Opportunity dispute.

The three elements in dispute were as follows: How many additional AA pilot seniority numbers should AA’s acquisition of TWA have created for Eagle flow-through pilots awaiting them, where on the AA pilot seniority list should those numbers reside, and should flow-through pilots still at American Eagle have rights to attend TWA ‘new hire classes’.

The Arbitrator’s decision was as follows: AA’s acquisition of TWA should have generated an additional 154 AA pilot seniority numbers for Eagle flow-through pilots. That is equal to the number of TWA "new hire" pilots offered recall prior to the expiration of Letter 3. Secondly, those new AA pilot seniority numbers should reside junior to any pilot currently on the AA pilot seniority list. Third was the question of whether AA seniority holding flow-through pilots have rights to attend ‘new hire classes’ alongside their TWA counterparts. Arbitrator LaRocco found that this question did not fall within the scope of his jurisdiction. As a result of this ruling the third question must be arbitrated separately if not resolved.

Although the decision is not a complete victory, the outcome is consistent with what your MEC expected. Prior to and throughout the arbitration process, the MEC conducted significant research in consultation with numerous attorneys with intimate knowledge of Letter 3 and its history. We realize that this has been a divisive issue and we hope that between the ‘Bloch Decision’ on rights to recall and this decision by LaRocco on remedy, we can begin to gain some closure on the Letter 3 flow-through, flow-back process.

The MEC will consider whether to bring before an arbitrator the issue of flow-through pilots’ potential right to ‘new hire class’ slots at AA. Additionally, a number of furloughed AA pilots originally employed at American Eagle under the furlough protection provisions of Letter 3 are currently challenging their displacements from CJ Captain positions as a result of an internal Eagle displacement. Although these disputes are not yet over, we now have a clearer picture of the final results.

We want to thank all of those pilots who have supported your MEC during these challenging disputes. We will post Arbitrator LaRocco’s decision in this matter as soon as we receive the signed copy.