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Old Mar 28, 01, 3:36 pm
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American Airlines officials say they won't bargain until this summer over several demands made by its pilots union in connection with American's purchase of Trans World Airlines.

The Allied Pilots Association, which represents American's 11,000 pilots, has demanded improvements in job security, pensions and other contract provisions in exchange for their support of American's $742 million purchase of TWA.

Talks between the union and American on the union's possible support of the purchase broke off last week and are expected to resume next week.


Leaders of the Allied Pilots Association, Association of Professional Flight Attendants and Transport Workers Union have jointly signed the following letter to AMR (NYSE: AMR - news) Chief Donald Carty:

March 28, 2001

Mr. Donald J. Carty
Chairman and CEO
American Airlines, Inc.
P.O. Box 619616, M.D. 5624
DFW Airport, TX 75261-9616

Dear Mr. Carty:

As the Presidents of the three unions on the property, we wish to inform you that we cannot support American's purchase of TWA assets. We do not come to this conclusion easily or quickly. On the contrary, we reach it only after careful consideration of the long-term best interests of all past, present and future members of the American Airlines community. The employee turmoil that typically accompanies airline mergers and acquisitions -- in particular, the difficulty of integrating workforces -- could have a seriously negative effect on the future well being of American Airlines.

Given that inevitable impact of an acquisition, it is imperative that management deals fairly with and recognizes the contributions of its employee groups. As you know, our unions have worked exceedingly hard with American's management to make our airline the industry leader it is today, but we have yet to receive the assurances from management concerning the benefits, job protections and career expectations that our members deserve. At the same time, American has committed itself to provide significant enhancements to TWA employees.

The employee groups we represent remain committed to building the world's leading airline. That end, however, can only be achieved if all facets of the organization participate in the creation of that airline and truly share in the benefits of that achievement. Thus far, that has not been the case. For this reason, and with a keen sense of disappointment, we cannot support this transaction.


Captain John E. Darrah John Ward James C. Little
President President Vice President and
Allied Pilots Association of Director of Air Transport
Association Professional Flight Division

cc: TWU Board of Directors
APFA Board of Directors
APA Board of Directors
AMR Board of Directors

[This message has been edited by doc (edited 03-28-2001).]
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