November 10, 2008


American Eagle & Executive Airlines Pilots:

The majority of previously announced capacity reductions at American Eagle were implemented last week. I am pleased to let you know that at this point we do not anticipate pilot furloughs as a consequence of these or the prior schedule reductions.

Working closely with Eagle’s Flight Department, crew scheduling and Air Line Pilots Association (ALPA) leadership, we’re relying on a combination of voluntary exit options, attrition and adjustments to bid line values to achieve the overall staffing reductions required by the cutbacks in our schedule. Therefore, no Eagle or Executive pilots will lose their job involuntarily as a result of the schedule changes of the last several months.

Eagle’s Plan to Win has three major strategies: 1) Retain American as a Customer; 2) Position Eagle for Growth; and 3) Align Employee Interests with those of Eagle. Although we all wish we were growing rather than shrinking, we can take some satisfaction in the fact that we have kept AA’s flying – in fact,
recovered some flying from Trans States Airlines – and kept our employees’ interests and Eagle’s interests aligned by avoiding pilot furloughs. By continuously improving our safety, reliability and efficiency, we improve our chances of being able to grow (with AA and possibly with other airline
customers – and in other lines of business) when times improve.

I am proud of the fact that Eagle has the safest and most experienced team of aviators in the industry. I know that the staffing changes to support our new schedule will require many of our pilots to make changes to their base and/or preferred assignments. I know that some of these changes will be difficult
and I thank you in advance for your continued excellent performance in the face of all the change happening around us.

We continue to have a significant cost disadvantage compared to our regional peers, and have seen other regionals grant price reductions to their mainline partners to retain their flying contracts. While we cannot rule out schedule and/or staffing reductions in the future, we have no plans to do so at the
current time. We are committed to navigating this difficult period with the objective of ensuring Eagle’s long term success while simultaneously addressing employee interests to the greatest extent possible. Although we are sure to face continued challenges as our economy and industry evolves, I am confident
that American Eagle will be a force in commercial aviation for years to come. Thank you for all you do to fly safely, reliably and efficiently.

Peter Bowler
President & CEO