Allied Pilots Association, Air Line Pilots Association Respond to Announcement of Layoffs At American Eagle: `The Primary Issue is Outsourcing'.

Business Editors

FORT WORTH, Texas--(BUSINESS WIRE)--Feb. 4, 2002

The Allied Pilots Association (APA), which serves as collective bargaining agent for the 11,000 pilots of American Airlines, and the American Eagle Air Line Pilots Association Master Executive Council representing the 2,800 American Eagle pilots jointly expressed their concerns over the February 1 announcement of furloughs at American Eagle by AMR management (NYSE:AMR).

"It is unfortunate that management has decided to furlough American Eagle employees, rather than negotiate a solution that works to the mutual satisfaction of all parties," said Captain John Darrah, APA President. "Clearly, the current relationship between American Airlines and American Eagle remains unsatisfactory, both from management's perspective and from the standpoint of the labor groups at the two carriers. APA is committed to resolving this issue during the course of our current Section 6 negotiations."

According to the American Eagle ALPA representatives, the primary issue for both pilot groups is outsourcing.

"We understand why APA negotiated the commuter air carrier limitations in their contract's Scope clause," said Captain Jim Higgins, American Eagle ALPA MEC Chairman. "American Airlines' pilots are concerned about the outsourcing of their flying. We are now seeing the same problem between American Eagle and the American Connection carriers."

APA's collective bargaining agreement calls for American Airlines' commuter operation to freeze its Available Seat Miles and block hours at October 1, 2001 levels as a consequence of the American Airlines pilot furloughs. American Connection carriers Trans States, Chautauqua and Corporate Express are now performing flying to feed American Airlines in St. Louis and Nashville that American Eagle should be flying. Higgins noted that if American Eagle's flying had not been outsourced to these other carriers, there would no need to furlough Eagle employees.

"What management is doing with American Airlines, American Eagle and American Connection is classic whipsawing -- that is, attempting to pit labor groups against one another -- and it is not going to work," said Higgins. "We would be much better served to concentrate on achieving a solution that is in all of our long-term best interests."

Headquartered in Fort Worth, Texas, APA was founded in 1963. The union's Web site address is www.alliedpilots.org.

American Eagle ALPA Master Executive Council is headquartered in Euless, Texas. Formed in 1931, ALPA is the world's oldest and largest pilots union, and is affiliated with the AFL-CIO. ALPA represents 66,000 pilots at 47 airlines in Canada and the United States. Its Web site is at www.alpa.org.