Allied Pilots Association Presents Proposal for Negotiating Protocol and Timetable

Business Wire, Feb 13, 2008

FORT WORTH, Texas -- The Allied Pilots Association (APA), collective bargaining agent for the 12,000 pilots of American Airlines (NYSE: AMR), presented the carrier's management with a proposal today calling for the establishment of a protocol and timetable for the ongoing contract negotiations.

"We believe a prompt resolution to our negotiations is in the best interests of all concerned--including our pilots, our company's shareholders and the traveling public--and our proposal will accomplish that aim," said APA President Captain Lloyd Hill.

APA's proposal calls for both parties to agree to four consecutive weeks of National Mediation Board (NMB)-assisted mediation beginning on March 3. If either party finds the progress to be unsatisfactory at the end of the four-week period, APA and management would jointly petition the NMB for mediation under Section 5 of the Railway Labor Act (the legislation governing all airline industry labor negotiations). The Section 5 mediation would last up to 120 days following the date of the mediation request. If an agreement is not reached, the two parties would then request a proffer of binding arbitration by the NMB.

"Back in 2003 during our airline's out-of-court restructuring, management demonstrated the ability to put together a new contract with our pilots in less than one month--a contract that contained nearly 300 items that were markedly changed from the previous agreement," Hill said. "We need to apply a similar sense of urgency to our current negotiations."

According to Hill, APA's proposal is designed to further the Railway Labor Act's stated objectives of prompt resolution of disputes and minimizing disruption of commerce.

APA had requested federal mediation services from the NMB last month. The NMB responded by informing APA that it was interested in "exploring with the parties alternative methods of narrowing the issues prior to entering formal mediation." APA's proposal accommodates the NMB's wishes.

Hill noted that management triggered the early-opener provision in the pilots' contract more than 18 months ago to begin the bargaining process, but has not provided any comprehensive proposals to the union throughout the talks.

"It's well past time for management to get out of the 'delay' mode and join us in putting bargaining on a fast track," Hill said.

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 2,221 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.