Before ya'll get your panties wet....


Whereas the APA and the Company have agreed that in the future, Commuter Air Carriers operating under Section 1.D. of the Agreement shall utilize only aircraft that are not certificated in the United States or Europe with a maximum passenger capacity of more than 50 seats and that are not certificated in any country with a maximum gross takeoff weight of more than 64,500 pounds;

Whereas American Eagle Airlines currently has twenty five CRJ-700 aircraft in service or on firm order, and also has options on an additional twenty five CRJ-700 aircraft:


Now, therefore, the parties hereby agree to the following:

1. The Company and APA shall have one year from May 2003 to meet and negotiate in good faith the transfer of the CRJ-700 aircraft currently in service, on order, or on option at American Eagle to the Company’s operating certificate in a manner that shall be cost-neutral as to labor costs under collective bargaining agreements.

2. The APA hereby grants to the Company an exception from the 50 seat and 64,500 pound limitations on aircraft at American Eagle for the CRJ-700 aircraft during the time period of negotiations pursuant to paragraph 1, above, and for one year after reaching agreement with the APA under paragraph 1, above, in order to effect the transfer to the Company’s operating certificate of all CRJ-700 aircraft operated by the Company or an Affiliate.


3. If the parties do not reach agreement under paragraph 1 of this agreement, the APA grants to the Company an exception from the 50 seat and 64,500 pound limitations on aircraft at American Eagle specifically for the CRJ-700s currently in use, on order or on option as of the signing of this letter. This exception is for a maximum of fifty (50) CRJ700 aircraft with the understanding that the cancellation, transfer or expiration of any of the current (as of DOS) orders or options reduces this maximum number by a like amount.

For the American Airlines, Inc. For the APA