American Airlines Negotiations

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Unlike many companies, American has remained committed to preserving its employees’ defined benefit pension plans. Since the beginning of 2002, the company has contributed more than $2 billion to these plans, underscoring its commitment to employees and standing in stark contrast to U.S. network airline competitors that have terminated or frozen their employee pension plans in bankruptcy court. Even as the company faced record fuel prices and was challenged by steep losses throughout 2008, American met its minimum funding requirement of $78 million for the year.

The company understands the critical importance of protecting and funding employees’ pensions as
   part of their total compensation package and funds defined benefit plans for four employee groups:

• Pilot workforce
• Workers represented by the TWU
• Flight Attendants
• Management/Support staff

American's consistent and conservative approach to investing, as well as its relentless focus on its 
   pension commitment, has allowed it to maintain defined benefit pension plans for roughly 130,600
   participants when other companies have frozen or eliminated this benefit.

Defined Benefit Pension Plans

	AA	CO	DL	UA	US	NW	B6	WN	FL
Pilots	YES	FROZEN	TERMINATED 2006	TERMINATED 2005	TERMINATED 2003	FROZEN 2006	NO	NO	NO
Flight Attendants	YES	YES	FROZEN 2005	TERMINATED 2005	TERMINATED 2005	FROZEN 2006	NO	NO	NO
M&E	YES	YES	FROZEN 2005	TERMINATED 2005	TERMINATED 2005	FROZEN 2006	NO	NO	NO
Agents & Reps	YES	YES	FROZEN 2005	TERMINATED 2005	TERMINATED 2005	FROZEN 2006	NO	NO	NO

Key Defined Benefit Pension Plan Facts

• Since 2002, American has contributed over $2 billion to its pension plans.
• In recent years, American has consistently funded all employees’ defined benefit plans
     at or above the federally-required minimum – even during periods in which the company did
     not earn a profit.
• AA continues to manage investments conservatively and with an eye toward being able to
    sustain these important benefits for employees and retirees for the long term.
•    American earned PLANSPONSOR's Corporate Plan Sponsor of the Year in March 2007.

   American vs. Other Airlines

•    The company's goal continues to be to avoid the adverse pension outcomes suffered by other
     network carriers by securing its financial future.
• Competitors such as United, Delta, Northwest and US Airways have terminated or frozen their
     defined benefit plans.
• Low cost carriers, such as jetBlue and AirTran, do not offer defined benefit plans to their
     employees.