Allied Pilots Association Issues Statement Regarding Decision by Union's Board to Accept...

Business Editors

FORT WORTH, Texas--(BUSINESS WIRE)--April 24, 2003

The Allied Pilots Association (APA), collective bargaining agent for the 13,500 pilots of American Airlines (NYSE:AMR), released the following statement today regarding the decision by the union's board of directors

"This afternoon the APA Board of Directors voted unanimously to approve a resolution entitled 'TA Signature Authorization.' This resolution is authorization for the APA President to accept the agreement contingent upon acceptance by the other unions of their respective agreements.

"Following Board approval of this resolution, APA President Captain John Darrah signed the union's agreement. APA is now preparing to deliver the signed agreement to American Airlines management.

"The APA Board of Directors' resolution reads in part as follows:

"BE IT RESOLVED, that the APA Board of Directors authorizes the APA President to sign a letter with the Company making the Tentative Agreement effective on May 1, 2003 on satisfaction of the third contingency in the Terms of Bankruptcy Protection Agreement, that is, 'agreements or modifications in the salary and benefits of each of the Company's labor groups and non-union employees (other than APA)' in the agreed upon amounts.

"BE IT FURTHER RESOLVED, that this authorization shall also be expressly contingent on the inclusion of these subsequently agreed upon modifications:

    1. The Duration Clause shall be changed to reflect an earlier
       amendable date and an agreement to reopen and begin
       negotiation prior to the amendable date; and

    2. An incentive compensation plan that aligns the performance
       criteria of management and labor for additional cash
       compensation; and

    3. The ability to take any one contract item to interest
       arbitration, on an expedited basis, at APA's request.

"That is the full text of the resolution. APA has secured the subsequently agreed upon modifications reflected above in items 1., 2. and 3. To reiterate, APA's agreement is effective contingent upon the Transport Workers Union and Association of Professional Flight Attendants accepting their respective agreements."

That is the full text of the statement.

Founded in 1963, APA is headquartered in Fort Worth, Texas.