Release #07.EGL2
October 23, 2007

FOR IMMEDIATE RELEASE

American, Eagle Pilots Reach Agreement that Revises Flow-Through Agreement
Deal Offers Career Advancement, Furlough Protections and Strengthens Operations

Euless, Texas & Fort Worth, Texas — The pilots of American Eagle, a unit of the Air Line Pilots Association, Int’l., and American Airlines, represented by the Allied Pilots Association, reached a tentative agreement with their respective managements that settle three outstanding disputes over the parties’ flow-through / flow-back agreement.

The agreement provides career progression for a significant number of American Eagle pilots to American Airlines while giving furlough protection for American Airlines’ pilots. American Eagle is a wholly owned subsidiary of AMR (NYSE: AMR) and provides feed to American Airlines as well as point-to-point service in North and Central America and the Caribbean.

The agreement provides for American Airlines furloughed pilots to be recalled to American Airlines before American Eagle pilots can flow through to American Airlines, as well as the continued ability to obtain positions at American Eagle if there are further furloughs at American.

“We believe that if we can create a joint interest centered on career progression and a strong relationship with our mainline, we will be best positioned to address the existing disparity between mainline and regional pilot scope interests,” said Herb Mark, master executive chairman of the Eagle pilot group. “We are pleased to have taken our second step towards that end.”

“We believe that the goals we sought in this negotiation have been achieved, and that this agreement is in the best interests of American Airlines pilots,” said Captain Lloyd Hill, president of the Allied Pilots Association. “We are also pleased at the mutual cooperation between the two unions in working towards this agreement. We look forward to fostering and further building the relationship between our two pilot groups.”

This agreement also provides for enhanced pilot recruitment at American Eagle by providing guaranteed movement in the pilot seniority list, bonus programs, incentives for pilot retention, and growth.

The parties are now working on crafting contract language, after which the tentative agreement will undergo the unions’ individual ratification processes.

Founded in 1931, ALPA is the world’s largest pilot union, representing 60,000 pilots at 41 airlines in the United States and Canada. Visit the ALPA Web site at www.alpa.org.

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 2,570 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.

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CONTACT:
Captain Sam Mayer, APA, 203-731-1112
Captain Dave Ryter, ALPA, 817-685-7474