Eagle and Executive Employees,



Today, American and American Eagle finalized our planned flying schedule for 2011, which serves as the basis for next year's budget and for many of the strategic initiatives that will take place during the coming year. Included in the plan are some changes to our San Juan (SJU) schedule that I wanted to ensure all employees are aware of.



For some time, a number of our San Juan routes have been under-performing, and in this fiercely competitive business, we have no choice but to concentrate our flying where it can be most profitable. Therefore, American and American Eagle will further reduce unprofitable flying from SJU, effective with the April 6, 2011 schedule change.



As you know, both American and American Eagle reduced flying across the system in recent years, as a result of the downturn in the economy and lower demand for air travel. Since then, the focus has been on bolstering our network around American's five "cornerstone" cities -- Dallas/Fort Worth, Chicago, Miami, New York and Los Angeles -- which are key business markets and international gateways that are vital to our success.



While American plans to cut six daily flights and Eagle plans to reduce 10 flights, we will continue to offer 41 daily flights from San Juan, providing our customers with ample destination choices throughout the Caribbean.



Regrettably, these changes will impact our employees in San Juan and we are working now to determine the exact number of positions that will be affected. Over the coming months, we will do everything possible to offer affected employees the opportunity to transfer or bid for vacancies elsewhere in the system.



I know that this is disappointing news, especially to our dedicated employees in Puerto Rico. However, with the addition of our 22 new CRJ-700 aircraft that we are already beginning to take delivery of, I do not anticipate this reduction to affect the overall flying by American Eagle in the coming year. I remain convinced that 2011 will be a year of change, but one that will bring even greater opportunity for American Eagle. Thank you for all you do -- for each other and our customers.