Allied Pilots Association Calls on National Mediation Board to Expedite Negotiations with American Airlines

Business Wire, May 1, 2008

May 1, 2008 Marks "Amendable Date" of Pilots' Contract -- Early-Opener Provision Does Not Work As Intended

FORT WORTH, Texas -- The Allied Pilots Association (APA), collective bargaining agent for the 12,000 pilots of American Airlines (NYSE: AMR), called on the National Mediation Board (NMB) to expedite contract negotiations between the union and airline management in accordance with the Railway Labor Act. All airline labor negotiations are governed by the Railway Labor Act, whose stated purpose is "to provide for the prompt and orderly settlement of all disputes concerning rates of pay, rules, or working conditions."

Last month the NMB docketed the APA-American Airlines contract negotiations and assigned federal mediator A. Michael Tosi to the talks.

"For the good of all concerned--including our airline's employees, passengers and shareholders--we need to bring these negotiations to a prompt conclusion," said APA President Captain Lloyd Hill. "APA appeals to the NMB to help us accomplish that aim. We hope federal mediator Tosi can use the tools at his disposal to encourage American Airlines management to bargain in good faith."

May 1, 2008 marks the amendable date of the APA-American Airlines contract. Labor contracts do not expire under the Railway Labor Act, but instead become subject to amendment at an agreed-upon date.

Hill noted that management triggered the early-opener provision in the contact to begin negotiations 18 months before the amendable date.

"The early-opener provision was designed to enable the two parties to reach a new agreement by the contract's amendable date," Hill said. "Clearly, this provision has not produced the desired result, as evidenced by the lack of progress at the bargaining table.

"Our pilots have consequently been denied any meaningful improvements in their wages and working conditions," he said. "Meanwhile, our airline's managers chose to reward themselves with approximately $300 million in bonuses during this same period--a period also marked by American Airlines' return to profitability and management's pre-payment of billions in debt."

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 2,043 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.