Allied Pilots Association Repeats Request for Federal Mediation in Ongoing Contract Negotiations

Business Wire, April 11, 2008

FORT WORTH, Texas -- The Allied Pilots Association (APA), collective bargaining agent for the 12,000 pilots of American Airlines (NYSE: AMR), requested federal mediation services from the National Mediation Board (NMB) this week in accordance with Section 5 of the Railway Labor Act. APA confirmed today that the NMB has received the union's request for mediation.

The union had originally requested the involvement of a federal mediator in its negotiations on January 10, 2008. At that time, the NMB elected not to docket the case or assign a mediator. APA and American Airlines management subsequently agreed to engage in four weeks of NMB-facilitated negotiations, which have concluded.

"As we stated when we originally requested the NMB's involvement in our talks, it is clearly in the best interests of all concerned that we bring these negotiations to a prompt conclusion," said APA President Captain Lloyd Hill. "We are optimistic that the involvement of a federal mediator will accelerate the bargaining process."

Hill noted that APA and management reached an agreement this week in the NMB-facilitated negotiations to provide pay protection to pilots affected by the airline's mass flight cancellations.

"Senior Mediator Linda Puchala played a valuable role in helping to produce a pay protection letter of agreement between our two parties," Hill said. "Mediated negotiations under the auspices of Section 5 of the Railway Labor Act will employ the same helpful techniques Ms. Puchala used this week.

"Throughout these negotiations, management has been reluctant to acknowledge our pilots' vital contributions to our airline's recovery and has been generally unwilling to address our legitimate needs," Hill said. "Accordingly, we believe mediation is essential and look forward to the NMB fulfilling its statutory obligation to docket our case and assign a mediator."

APA had invited management to join in the union's original request for mediation. Management declined to do so and also did not agree to language in the protocol governing the recently concluded facilitated negotiations that would have provided for a joint request for mediation. Therefore, this latest request is by the union only.

"Management's evident desire to avoid NMB mediation is intended to delay an agreement," Hill said. "NMB mediation should move this process forward and is in the interests of both APA and management."

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 2,146 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 and fifth-largest cargo carrier.