Dear Brothers and Sisters,

Today, the Union leaders of the APA, APFA, and TWU received detailed information from AA regarding how they reached the conclusion on the need for 4 billion in annual cost savings, and the $1.8 billion in annual savings from labor. The company provided a detailed briefing from members of their finance department, which included their rational, methodology, and cost assumptions used in their calculations. Gerard Arpey, AMR President was also in attendance along with our financial consultants from ECLAT.

Our consultants have identified some areas where we may need some additional data, or further explanation from the company on the information AA has provided.  As of today we have not received a breakdown of how the company arrived at the $620 million request from our members. 

A copy of the ECLAT report will be sent to all Local Presidents early next week for presentation to the members.

There are no additional meeting dates scheduled. We understand everyone’s concern regarding what is transpiring and we will keep you advised once future meeting dates are confirmed. Sincerely and fraternally,

James C. Little,

Director Air Transport Division

International Administrative Vice President..