AAflyer

FOR IMMEDIATE RELEASE

CONTACT:

Captain Karl Schricker

817-302-2350/817-957-5275

Gregg Overman

817-302-2250/817-312-3901

ALLIED PILOTS ASSOCIATION PROPOSES PAY RESTORATION FOR AMERICAN AIRLINES PILOTS; CITES MEMBERSHIP MANDATE, DRAMATIC INCREASE IN MANAGEMENT COMPENSATION

‘Inflation has steadily eroded our purchasing power’

Fort Worth, Texas (October 23, 2007)—The Allied Pilots Association (APA), representing the 12,000 pilots of American Airlines (NYSE: AMR), presented a pay proposal to the carrier’s management today that is designed to restore the pilots’ lost purchasing power.

Current American Airlines pilot pay rates are slightly lower than what they were in 1992, with inflation eroding the pilots’ purchasing power by more than 33 percent since that time. APA’s proposal calls for adjusting current pay rates to account for post-1992 annual inflation, as reflected by the Consumer Price Index.

American Airlines management rejected an earlier pay proposal APA’s previous leadership made in May. Shortly thereafter, the membership elected its current national officers by the widest margin and with the largest voter turnout in APA history. Upon taking office, the newly elected leadership commissioned a survey of the membership regarding the ongoing contract negotiations with American Airlines management.

“Our pilots were unequivocal in our recently concluded membership survey—it’s time to restore their purchasing power,” said APA President Captain Lloyd Hill. “Moreover, that erosion accelerated dramatically for our pilots and their families with the deep concessions we made beginning in 2003.”

Hill pointed out that the majority of American Airlines’ pilots have been with the airline since the early 1990s, which means that pilots have endured an ongoing decline in their standard of living for much of their careers with the carrier.

“In sharp contrast to what our pilots have endured, American Airlines management has given itself what amounts to an exponential increase in compensation over the same period. What we are seeking for our pilots doesn’t even begin to approach management’s gains,” Hill said.

American Airlines’ five “Named Executive Officers” (as identified in documents filed with the Securities and Exchange Commission) have experienced an increase of 469 percent in their total compensation since 1992. For the CEO, the increase has been even more dramatic. In 1992, American Airlines CEO Robert Crandall’s total compensation was $1,013,471. Current CEO Gerard Arpey’s total compensation for 2007 will be $8,344,971—an increase of 723 percent, representing a 560 percent increase in purchasing power.

“It is well past time to restore our pilots’ purchasing power,” Hill said. “After all, management compensation has done much more than simply keep pace with inflation. By any measure, the past 15 years have been extremely lucrative for our airline’s senior executives.”

For more details regarding APA’s pay restoration proposal and other proposals the union has made during the ongoing contract negotiations, go to www.apanegotiations.com.

Founded in 1963, the Allied Pilots Association—the largest independent pilot union in the U.S.—is headquartered in Fort Worth, Texas. APA represents the 12,000 pilots of American Airlines, including 2,570 pilots on furlough. The furloughs began shortly after the September 11, 2001 attacks. Also, several hundred American Airlines pilots are on full-time military leave of absence serving in the armed forces. The union’s Web site address is www.alliedpilots.org.

American Airlines is the nation’s largest passenger carrier.

AAflyer

Duration:

• Contract amendable January 4, 2011

• Openers exchanged 180 days before amendable date

• Mediation at 120 days before amendable date

• Release at 30 days prior to amendable date

• Self-help at amendable date

• Management pays all direct union costs during Section 6 negotiations

Furlough Issues:

• Furloughees credited LOS for all purposes

• Double furlough pay provisions

• Offer enhanced early retirement before and during furlough period

Probation:

• Eliminate probation

• Increase 1st and 2nd year pay in line with remainder of FO pay

Meal and Incidental Expenses (M&IE) (per diem):

• Commence one hour prior to deadhead (no change to deadhead sign-in)

• NYC Government Services Administration M&IE rate domestically

• State Department London M&IE rate internationally

Sick Leave:

• Change to Personal Time program

• New hires granted 250 hours upon employment

• Accrue 80 hours per year

• Unlimited accrual

• Payout over 1000 hours

• Increased rapid re-accrual

• Allow schedule modification while out on Personal Time

Vacation:

• Earlier accrual

• Greater accrual

• Allow unequal VC trades

• 5-day slide

• Allow fly-through vacation

Sequence Protection:

• By leg, day, sequence and monthly projection

• Paid greater of original or modified

Signing Bonus:

• 15% of W-2 from July 21, 2006 (management’s early openers)

Paycheck:

• 15th of month – 50% of current month’s guarantee

• 5th of month – remainder of previous month’s pay

Pay Over Monthly Guarantee:

• Pay over monthly guarantee is premium pay

International and Night Pay:

• International pay is 7.5% of hourly rate

• Night pay is 5% of hourly rate

Holiday Pay:

• Premium pay for any trip touching 10 designated holidays

Variable Compensation:

• In cash and pensionable

• Pilot-only plan

• Uses three different methods. Whichever provides highest payout is used.

• Triggers for payout easily verified from public documents

• Provide meaningful incentive to pilots

Pay:

• May 1, 2008 pay indexed to inflation dating back to 1992 (16 years at 2.68% compounded annually)

• Annual increase of 6% plus cost-of-living during new contract continuing until new contract is negotiated

• All pay increases retroactive to amendable date of current agreement (May 1, 2008)

The actual proposals presented today along with future proposals will be made available on www.apanegotiations.com.

HercDriver130

You have to applaud the boldness of this proposal.....

Good Luck.

Illini

That is awesome. APA better get it and turn the industry around.

7576FO

For those non AA pilots that read this. We currently are paid an "advance" of $1,000. on the 15th and the remainder of the previous month on the following 25th of current month. ? Yeah, I still don't understand it, ancestor worship like everything else here in the Air Force.
Also, in 97' we made the furloughees of the early 90's whole. meaning Length of service for time on furlough. Thank you. We must do this again for those who were furloughed because of 9/11.
In Aug 2001 we turned down a matching pay rates of UAL or Delta I do not remember which. Then Sep 11 happened. So we were flying on 1997 contract wages until 2003 when we took a 23.5 % pay cut and lost a lot of other contractual sick/vacation benefits.
Just a little info for those not at AA who read this proposal.

HercDriver130

Personally I think its a great proposal. But if BOTH sides are unwilling to negotiate ....it is doomed to failure.

aa73

Yo FliFast,

Check it out:

Furlough Issues:

• Furloughees credited LOS for all purposes

I told you they would include it in their proposal! And we got it last time, too. Notice it does not differentiate between TWA and AA pilots... because we *ARE* all AA pilots!

Cheers,
73

Mink

Pretty sweet proposal, hope even 1/2 of it (especially the furlough parts!) survive the process...

FliFast

Yo Yo..whassup AA73.

The furlough pay is a step in the right direction.

Truly, I am just the messenger. Best of luck to the nego commitee.

I think it is a fair statement that all eyes are pointed your way.

FF

threegreen

interesting clip from the web site

http://www.alliedpilots.org/Public/P...hotline_hi.mov