Approaching 2010 with “2020” Vision

Customer Experience DOT Gives Tentative AA, AE and Rewards ATI Approval for Employees Help Haiti What's Our Payout? page 22 AA, BA, and IB page 4 page 22

Vol. 68, No. 1 | First Quarter 2010

Approaching 2010 with “2020” Vision Japan Airlines Continues With a decade of tough challenges behind Be a Good Place for Good People us, we have introduced American Airlines Our future depends on our remaining a Membership in oneworld FlightPlan 2020, a framework to guide us good place to work and to build a career as we meet the challenges and opportuni- — on maintaining a safe, collabora- Japan Airlines (JAL) reaffirmed its long- “American and all its oneworld part- ties that await us in the decade to come. tive, and respectful work environment standing oneworld alliance membership ners, and in particular British Airways The overarching theme of the framework where everybody’s contributions are as the airline took its first steps toward and Qantas, look forward to working is that to secure our future, we must be valued, and everyone’s ideas are not returning to financial stability. The deci- with JAL to create an even stronger competitive in everything we do. The only welcome, but sought out. sion cleared the path for AA and JAL to file partnership through commercial individual tenets of the plan are: an application for antitrust immunity and enhancements and assistance that can Fly Profitably trans-Pacific joint business agreement. generate important new revenue to JAL Invest Wisely Profitability is not only an end we are Together, the two airlines submitted and support its successful restructur- Realizing that we are in a capital- trying to achieve, it is also the means an antitrust immunity application to ing,” says Gerard Arpey, CEO. constrained world, we must invest to every other end. The other tenets of the U.S. Department of Transportation. The oneworld carriers previously out- wisely in the aircraft, facilities, and FlightPlan 2020 can only succeed if we Under the agreement, American and lined plans to deliver to JAL commer- technology we will need to compete achieve consistent profitability — so we JAL plans to cooperate commercially cial benefits valued at approximately and win in the years to come. need to keep finding ways to drive our on flights between North America and $2 billion in ongoing and incremental revenue up and our costs down. Asia providing greater customer choice revenue over three years. Earn Customer Loyalty This issue of Flagship News features with better connections, networks, and See Jetnet for more information about We must make American the airline of FlightPlan 2020 in action. You’ll notice frequent flyer benefits. AA and JAL. choice across a broad spectrum. That graphic icons that depict each of the means delivering the basics of customer five tenets of FlightPlan 2020. Check satisfaction to all customers, and deliv- out the FlightPlan 2020 center spread ering a differentiated travel experience and post it on your wall. Let it serve as for our Premium customers. a reminder throughout 2010 of what we must do to succeed. Strengthen and Defend If we compete hard every day, and Our Global Network stay focused on the principles embed- The strongest network is one that ded in FlightPlan 2020, we will win, most effectively delivers what custom- and we will make the decade to come ers value. That’s what we are building a decade of success for American

through our corner post strategy in the Airlines.

AIRLINES U.S., and internationally through new

AMERICAN AMERICAN Texas 75261-9616 Texas

PAID AA services and alliances, especially See more on FlightPlan 2020 Dallas/Fort Worth Airport, Airport, Worth Dallas/Fort

MD 5577, P.O. Box 619616 Box P.O. 5577, MD

U.S. POSTAGE U.S. oneworld. on pages 12 and 13

PRSRT STD PRSRT Flagship News Flagship The Plane Facts on AMR’s financial performance By Tom Horton, Executive VP-Finance & Planning and CFO A Global View of American’s Global Alliances Open any newspaper these days and it’s the DOT tentatively approved our plans. alliances, namely Star and SkyTeam. able to increase revenue while ensuring easy to find a story about the importance These developments are both important While we helped build the best global competition in the U.S.-Japan market. of global alliances to the airline industry. steps forward, not only for American alliance in oneworld, competing alli- We are confident that the ATI applica- We were just glimpsing that future in Airlines, but for oneworld as well. ances are working to grow stronger, too. tion will meet DOT’s pro-consumer and 1999 when American and four other Strengthening and defending our global pro-competition criteria for granting airlines started the oneworld alliance. network is a key tenet of FlightPlan 2020, Japan Airlines and oneworld ATI, which will pave the way for our Now, the frequent headlines illustrate and that’s the goal of these trans-Atlantic In Japan, Delta Airlines and the two airlines to operate a joint venture the critical need for airlines to take their and trans-Pacific initiatives. SkyTeam alliance for months have been between the United States and Japan. customers around the globe, even when courting JAL to leave oneworld. JAL, Ultimately, we are pleased that JAL they can’t do so with their own network. Global Alliances are Key to the which recently began to address its chose to stick with American and one- Partnerships are increasingly important, Success of Modern Airlines financial challenges through a bank- world, and we are excited about working and we’ve been doing everything pos- The interconnected nature of the global ruptcy reorganization, ultimately chose with JAL to create an even stronger part- sible to ensure that oneworld, now a economy has fully developed over the to stay with oneworld because of its nership through commercial enhance- global alliance of the top airline brands, past two decades. The production and superior partners, access to the most ments and assistance that can generate can compete aggressively with the other consumption of goods and services important markets, stable revenue base, important new revenue to JAL and sup- two global alliances. And, based on around the world is nearly unfettered by and growth potential in the future. port its successful restructuring. two positive developments in the trans- national borders. Our business custom- JAL’s decision to remain with one- Pacific and trans-Atlantic markets, our ers need, and expect, to go everywhere world is important because its network Trans-Atlantic Joint Business efforts are bearing fruit. in order to do business. However, as I in Northeast Asia is a valuable piece of Similarly, American and oneworld have I’m sure you’ve read plenty about our mentioned, no single airline can hope the oneworld mosaic of service (Japan faced tougher competition on the trans- efforts to defend and grow our partner- to fly to every point on the world map. alone is the second-largest economy in Atlantic from SkyTeam and Star, which ship with Japan Airlines (JAL) between A strong, global alliance, then, is the world), which is why you saw us already enjoy immunity in that market. the U.S. and Asia. In fact, you may be the key to opening international doors and oneworld redouble efforts to assist We have been focused on creating a aware of the good news we recently for our customers. Just as American JAL as it addresses its financial chal- level playing field by seeking antitrust heard from JAL, which has agreed to created a hub-and-spoke network, in lenges and to keep it within oneworld. immunity (ATI) with British Airways continue and strengthen its partnership partnership with American Eagle, to JAL’s network is especially important to and Iberia. Our competitors, with the with American within the confines of the deliver passengers across the United American because many customers on benefit of using ATI within their alli- oneworld alliance. On the heels of that States, our partners in the oneworld our five daily Narita flights connect on ances, currently have advantages that decision, American and JAL immedi- alliance act as a global hub-and-spoke JAL to destinations beyond Tokyo. American and oneworld do not have. ately filed a joint application for antitrust network. Because airlines typically are This was an important decision for JAL ATI will allow American, BA, and immunity with the U.S. Department not allowed to fly routes entirely within and the government of Japan, and we Iberia to set up a joint business offer- of Transportation (DOT), a move that a country outside of their home country, believe they have made the right choice ing customers more travel choices and ultimately will allow us to strenthen our our codeshare partners do the spoke fly- for JAL’s stakeholders, for Japan’s national convenience and an improved product. position — and oneworld's — in Asia. ing when we deliver them to their hubs. interests, and for consumers traveling Increased revenue and an improved We’ve also focused a lot of energy For example, our customer demand between Japan and the United States. competitive position will benefit our on our application to receive antitrust may not be enough to merit a nonstop American and JAL will focus on airlines, in turn benefiting all of our immunity (ATI) with British Airways from Miami to Bilbao, Spain, but we building a joint venture that can offer employees. We deserve a level playing (BA) and Iberia, so we can operate a can fly those customers to Madrid and JAL significant revenue growth beyond field, which is why we’ve remained con- joint business on flights between North let Iberia take them to Bilbao. the stability that oneworld offers today. fident that our tighter partnership with America and Europe. We have good Of course, we face global competi- When we obtain antitrust immunity BA and Iberia will be approved. news to share on that front, as well, as tion not just from airlines but also from with JAL, both of our airlines will be In fact, we are pleased to report that the DOT has recently granted tentative JUST THE FACTS approval of our application. We are reviewing the DOT's proposed condi- Total Net Profit (Loss) Total AMR Revenue Total AMR Net Debt tions and will respond in the required 2006–Present (in millions) 2006–Present (in billions) 2006–Present (in billions) timeframe, and we continue to work 600 $504 $23.8 diligently to outline the benefits of our 25 $22.6 $22.9 20 300 $231 plans to European Union regulators. 0 20 $19.9 15 $13.6 -300 $12.0 $11.7 In Conclusion -600 15 $11.0 10 -900 We’re proud to be a founding member 10 -1200 of oneworld, the best global airline 5 -1500 ($1,468) 5 alliance. We’re doing everything we -1800 can to keep it that way — and to make -2100 0 0 ($2,071) American and oneworld even stronger 2006 2007 2008 2009 2006 2007 2008 2009 YE 2006 YE 2007 YE 2008 YE 2009 in the future.

2 FLAGSHIP NEWS First Quarter 2010 AMR Closes the Books on a Challenging Year AMR Corporation, the parent company year, driven by reduced capacity, higher a major investment in our future,” he markets, was not only enormously help- of American Airlines, Inc., reported pension expenses, higher materials and says. To facilitate that investment and ful, it was also a nice vote of confidence a net loss of $415 million, excluding repair expenses, and investments in others, the company raised more than from the financial community — an special items, for the fourth quarter of dependability initiatives. affirmation that despite our challenges, 2009, bringing the company’s loss for “While our financial results accu- we have our company on the right the full year to $1.4 billion. rately paint a bleak picture of our “While our financial track,” Arpey says. “Like the rest of the industry we were financial performance, they certainly results accurately In late 2009, AA introduced severely impacted in 2009 don’t tell the entire FlightPlan 2020, the framework for by the global recession, 2009 story,” Arpey says. paint a bleak picture success in the decade to come. The which stifled demand for “Throughout the year, we of our financial per- overarching theme of FlightPlan 2020 air travel, causing sharp took positive and aggres- is that the airline must be competi- decreases in revenue,” sive steps to meet our formance, they cer- tive, in every aspect of its business, says Chairman and CEO short-term challenges, tainly don’t tell the to secure its future. (Please see the Gerard Arpey. “While we while simultaneously center spread of this publication for have been able to keep laying the groundwork entire 2009 story. more details.) our planes full — in fact, for better things in the Throughout the year, Arpey states that while 2010 is shap- our load factor of 81.1 decade to come.” ing up to be a very challenging year, percent for the quarter Arpey states that we took positive and there is cause for guarded optimism. was a record — heavy dis- 2008’s fuel crisis gave aggressive steps to “The economy in the U.S. appears to counting throughout the Gerard Arpey, CEO the company, in effect, be recovering, albeit at a slower pace industry and a steep decline in business a running start in tackling the eco- meet our short-term than any of us would like. And in travel prevented us from charging fares nomic crisis of 2009. In response to challenges, while terms of corporate travel, we are see- sufficient to earn a profit.” the unprecedented rise in fuel prices, ing signs that business travelers, who AA’s fourth quarter yield (represent- AA shrunk its schedule and began simultaneously laying cut way back in 2009, are ready to take ing average fares) was down 7.6 percent charging customers for services like the groundwork for to the skies again,” concludes Arpey. compared to 2008, and revenue per confirmed flight changes, food, and “In our domestic network, we expect available seat mile (ASM) decreased by checked baggage. “Our revenue chal- better things in the the corner post strategy we announced 4.3 percent. lenges in 2009 would have been far decade to come.” in 2009, and will be implementing in American’s fourth quarter cost per worse were it not for those 2008 initia- the coming months, to bear fruit. This ASM was essentially flat compared to tives,” notes Arpey. —Gerard Arpey, CEO spring, we will launch new service in 2009. The company paid $2.17 per gal- Arpey pointed to the arrival of the several important international mar- lon for jet fuel, compared to $2.60 in 31 new Boeing 737 aircraft the airline kets, and we believe we will soon gain 2008 — which translated to significant ordered as a major 2009 highlight. $5 billion in financing during 2009. the approvals we need to launch our savings. Excluding fuel, AA’s cost per “These planes, and the additional 45 “Our ability to raise that much liquid- Joint Business Agreement with British ASM increased by 8.3 percent year over 737s we will take this year, represent ity, despite the turmoil in the credit Airways and Iberia.” American Airlines Goes to the White House American Airlines enjoyed a seat at the Arpey participated in a group session table with President Barack Obama on infrastructure and the president recently when CEO Gerard Arpey partici- was in attendance. This gave Arpey pated in the White House Jobs Summit in the opportunity to discuss the need December. The president hosted the Jobs for increased federal funding of Next Summit to explore ways to slow the loss of Generation air traffic control and the jobs and quicken the pace of job creation. number of jobs that would be created The 130 invited participants included by expediting the program. representatives from large and small Related topics included ideas on businesses, unions, economists, financial how the government could assist in analysts, and state and local officials. immediate job creation in a number Other aviation representation was limited of areas, including aviation and infra- CEO Gerard Arpey shares key messages about aviation with President Barack Obama at the to Federal Express and Boeing. structure. White House Jobs Summit in December.

First Quarter 2010 FLAGSHIP NEWS 3 Customer Experience AA Awards $45.4 Million to Rewards Employees in 2009 What's My Customer Team or Work Group?

Pre-Airport Airport Onboard Overall Customer Support • Reservations • Domestic Airport Services • Onboard Service • Customer Experience • Marketing Performance • Technical Operations • AAdvantage • Cargo • Flight • Finance & Planning • Operations Planning & Finance & Strategic • Advertising • Maintenance & Engineering • Government Affairs Performance Planning • Corporate Communications • Human Resources • Safety, Security & • Global Sales • Information Technology Environmental • Interactive Marketing • Legal

What's My Customer Experience Reward for the Fourth Quarter 2009? Pre-Airport Airport Onboard Overall E&P MCLA in the U.S., Canada, in the U.S., Canada, in the U.S., Canada, Customer Europe and Pacific Mexico, Caribbean, and SJU and SJU and SJU Support and Latin America $300 $ 250 300

200

150 $150 $150 $150 100 $ $ 133 50 100

And for $ $ $ $ $ $ the 600 650 650 633 850 950 year? Includes CSS and Direct D-0 Includes CSS and Direct D-0 Includes CSS and Direct D-0 Includes CSS and Direct D-0 USD equivalent dollars USD equivalent dollars Includes LTR and Direct D-0 Includes LTR and Direct D-0 How Did We Do in the Fourth Quarter? For fourth quarter 2009, American awarded nearly $10.3 million to all eligible employees for achieving customer service goals. Congratulations to all eligible employees for making >> The Pre-Airport Team exceeded the Likelihood to For MCLA employees: continuous improvements in customer experience. Recommend targets in November and December >> We exceeded the Likelihood to Recommend goals The 2009 Customer Experience Rewards program (a >> The Airport Team exceeded the Overall during October, November, and December part of the Annual Incentive Plan, or AIP) rewards Experience at the Airport targets in October, >> We exceeded the Direct D-0 goal in October, eligible employees for exceeding specific monthly November, and December November, and December goals in dependability and customer satisfaction. >> The Onboard Team exceeded the Overall “When we all deliver and go above what our cus- Rewards are earned monthly and paid quarterly for Experience Onboard the Aircraft target in tomers’ expect when they travel on American, it all regions; with the exception of MCLA which is paid October, November, and December pays off for everyone. Customer Experience Rewards biannually. Unfortunately, we did not exceed our Direct D-0 are the results of approximately 70,000 American goals during the fourth quarter. Airlines employees working hard every day to Employees Achieve Fourth Quarter deliver great customer service to our customers,” Customer Experience Rewards For Europe & Pacific employees: says Mark Mitchell, Managing Director – Customer For U.S., Canada, and SJU employees: >> We did not exceed the Likelihood to Recommend Experience. We exceeded all but one of our customer satisfaction goal during the fourth quarter Go to the Customer Experience Rewards page on goals during the quarter: >> We exceeded the Direct D-0 goal during October, Jetnet for more information. November, and December

4 FLAGSHIP NEWS First Quarter 2010 Customer Experience Rewards ON Program Continues in 2010 Goals Set for Customer Satisfaction and Dependability Visualize how a customer feels when Survey (CSS): payout for exceeding the CSS goal a Flight Attendant recognizes him by >> Likelihood to Recommend remains at $50 per month. The total name. Think about how the customer >> Overall Experience at the Airport monthly CE Reward opportunity for feels when arriving at her destination >> Overall Experience Onboard the each employee (customer satisfaction on time. Aircraft and dependability goals) will be $100 Personalization and dependability Employees will be rewarded with monthly or $1,200 annually. Awards are a big part of our customer experi- $50 each month when the CSS results will be earned based on monthly per- ence efforts, and when we deliver and improve over the CSS goals, which are formance and paid as follows: improve on customer service, it can pay the average of our actual 2009 and >> For U.S., Canada, and SJU employ- Snowball Express off for employees. 2008 scores in each of the three survey ees: Feb. 12, May 14, Aug. 13, Nov. — A Texas During 2009, American paid areas. 15, and Feb. 15, 2011 welcome for the approximately $45.4 million to nearly >> For E&P employees: Feb. 26, May 31, 70,000 employees for improving on our Dependability Aug. 31, Nov. 30, and Feb. 28, 2011 families of fallen customer experience — as part of the The other CE Rewards component >> For MCLA employees: Aug. 15, 2010, soldiers. Customer Experience (CE) Rewards includes Direct D-0 performance as and Feb. 15, 2011 (part of AIP). The CE Rewards program the metric. Direct D-0 is a measure provides monetary awards to eligible of dependability and reliability — and Financial Component Available on and in employees for achieving customer serv- The Financial component of the AIP many workplace locations. ice goals. When we make continuous remains the same and is based on AA’s improvements in Customer Experience “It’s the little things annual pre-tax earnings margin with metrics that matter to our customers, that lead to customer tiered payouts if the profit margin employees are rewarded. exceeds 5 percent. In combination with “Congratulations for making loyalty. CE Rewards the Customer Experience Rewards, Customer Experience a banner year in are the result of nearly total awards under the plan can pay 2009,” says Dan Garton, Executive Vice 2.5 percent of an eligible employee’s First Quarter 2010 • Volume 68, No. 1 President – Marketing. “We delivered 70,000 employees earnings at the threshold level, 5 per- and improved customer service system- cent at the target level, and 10 percent Rhonda J. Rathje, APR wide — in nearly all ways possible, and consistently delivering maximum. Editor while it was another challenging year, what customers ex- Andrea Driver we enjoyed some success. Profit-Sharing Plan Co-editor “It’s the little things that lead to cus- pect and then some.” American also has a Profit-Sharing Susan Gordon tomer loyalty. CE Rewards are the result Plan that generates awards for eligible Managing Director Dan Garton, Corporate Communications & Publishing of nearly 70,000 employees consistently Executive Vice President – Marketing employees when AA exceeds $500 mil- delivering what customers expect and lion in Pre-Tax Earnings. For every Publisher then some,” Garton continues. dollar earned in excess of $500 million, refers to the percentage of departures the Company sets aside 15 percent About the 2010 CE Rewards that are not delayed for factors generally into a profit-sharing pool. The profit- Account Manager, KariAnne Harmon As in 2009, the 2010 Customer within the control of personnel at a sta- sharing pool will be divided among eli- Creative Direction, John May (Design) and James Mayfield (Edit) Experience Rewards program includes tion, including Maintenance, Customer gible employees, where each employee Director of Art and Edit, Michael Woody two main components — customer sat- Service, Flight, and Flight Service. receives the same percentage of pay. www.aapubs.com isfaction and dependability. The Direct D-0 goals for 2010 will be Awards are distributed to employees by Contributors Andy Backover, Brian Bianco, Webb Bierbrier, Mary CE Rewards will continue its focus of the average of actual 2009 and 2008 March 15 following the year in which Brauer, Bill Clark, Cindy Dalton, Cindy Ford, Andrea building on continuous improvement Direct D-0 results, adjusted to recognize they were earned. Huguely, Nancy Kalin, Beril Kilinc, Debi Kronschnabel, Kari McClure, Annamarie Mrazik, Tammie Nagai, in customer service by aligning various 2010 reporting changes that will move Once again, Customer Experience Susan Nurre, Dena Payne, Kent Powell, Cari Rae, work groups with relevant customer some delays from Direct to Indirect. Rewards aligns goals with rewards. David Simmons, Jana Sinn, Lindsay Sullivan, satisfaction metrics. “Each employee — “We have continued to make changes “By working together to run a good Dawn Turner, Tim Wagner, Courtney Wallace Submissions, which are subject to editing, should in some unique way — impacts the cus- to Customer Experience Rewards over airline, every member of the AA team be e-mailed to [email protected] or sent to tomer’s experience. It’s really a journey time. And this slight measurement helps ensure that the company is mov- American Airlines, Flagship News, MD 5577, P.O. that involves a series of touch points change in Direct D-0 is an example of ing in the right direction, improving Box 619616, DFW Airport, Texas 75261-9616. that each employee has an opportunity that,” says Jeff Brundage, Senior Vice customer service, and profits, and, Retirees who wish to subscribe should mail a check for $10 per year, payable to Flagship News to influence,” says Garton. President – Human Resources. “We want in turn, making progress toward Subscription, to American Airlines Flagship News, P.O. Box 224627, Dallas, Texas 75222-4627. (See the Customer Experience Rewards to find ways to directly reward employ- Customer Experience Rewards pay- Retiree subscriber mailing-address changes payout chart on facing page to review ees for what they do every day and how outs,” Brundage concludes. “Bottom should be sent to American Airlines Flagship News, P.O. Box 224627, Dallas, Texas 75222-4627 or call work groups.) that impacts customer service.” line — when we pull together as a toll-free (888) 304-0682. team we can do great things.” Advertisers should contact MJA Media at Customer Satisfaction Payout See Jetnet for more information about (214) 252-9971, or by fax at (630) 578-1331, or by e-mail at [email protected]. The customer satisfaction component is Payout for exceeding the Direct D-0 the 2010 Customer Experience Rewards Acceptance of advertising does measured by the Customer Satisfaction goal remains at $50 per month, and and the Annual Incentive Plan. not constitute endorsement.

First Quarter 2010 FLAGSHIP NEWS 5 Rising to the Top in Fourth Quarter 2009 Customer Cup Winners The quarterly Customer Cup recognition event acknowledges stations and their employees who are achieving the largest improvements in Customer Customer Experience Experience metrics. Hubs & Tier 1 Miami (MIA) These are the stations to watch in 2010. They each ranked #1 in their tier for having the largest improvements in Customer Experience ratings Tiers 2 & 3 Newark (EWR) during fourth quarter 2009 versus fourth quarter 2008. According to customer feedback on AA’s Customer Satisfaction Survey (CSS), customers Tiers 4 & 5 Reno (RNO) said they are most improved. Stations compete for the Customer Cup in up to 11 Customer Experience metrics depending on their size. Contract cities NW Arkansas (XNA)

Small International Cities Panama City (PTY)

Improvement in Overall Experience Improvement in Gate Experience

Overall experience Timely/accurate Likelihood to recommend Efficiency of boarding on the flight information at gate

4Q09 4Q09 JFK 4Q09 JFK 4Q09 LAX MIA & Tier 1 & Tier HUBS 75 1pt 76 2pts & Tier 1 & Tier HUBS 2pts 2pts 73 72 RDU 4Q09 SFO 4Q09 & 3

MCO 4Q09 EWR 4Q09 2 Tiers 79 3pts 77 2pts BDL 4Q09 YUL 4Q09

pts pts 3 4 & 5

Tiers 2 & 3 Tiers 80 74 Tiers 4 Tiers 73 3pts 78 6pts

4Q09 4Q09 PHX RNO Improvement in Improvement in Delay Management Baggage Handling

3pts 5pts

Tiers 4 & 5 Tiers 82 80 Overall handling of delay Checked baggage delivery

JFK 4Q09 ORD 4Q09 ORF 4Q09 ORF 4Q09 & Tier 1 & Tier HUBS 66 5pts 75 3pts Cities pts pts Contract Contract 6 9 79 79 SJO 4Q09 SFO 4Q09 & 3

Tiers 2 Tiers 8pts 6pts PTY 4Q09 PTY 4Q09 62 71 YYZ 4Q09 IAD 4Q09 Cities

80 9pts 77 8pts & 5 Tiers 4 Tiers 9pts 12pts Small International International Small 72 77

Improvement in Improvement in Onboard Interactions Improvement in Cabin Cleanliness Cabin Interior Condition Flight Attendants thanked cus- Flight Attendants referred Aircraft cleanliness Condition of aircraft interior tomers for business on deplaning to customers by name (F/J)

4Q09 MIA MIA 4Q09 STL 4Q09 737 (MIA) 4Q09 & Tier 1 & Tier HUBS 71 1pt 3pts 19pts Station 2pts B-Check F/A Base F/A 80 49 68 LAS 4Q09 Flight Attendants personally thanked & 3 customers for flying AA (F/J) Tiers 2 Tiers 73 3pts IAD 4Q09 DFW 4Q09 & 5 pts Tiers 4 Tiers 4pts 7 74 Base F/A 60

6 FLAGSHIP NEWS First Quarter 2010 Customer Experience — Customer Loyalty at No Cost

The Path to Customer Loyalty Employees Deliver High-Touch Service Strong Brands Have the Most Loyal Customers to Secure Loyalty Loyalty starts with consistently deliver- Sometimes we’re our own worst critic and often do not recognize our progress, but customers are telling ing the Customer Experience basics — us otherwise. For example, in 2009, customers named or what customers perceive as essential AA “Best Airline in the UK,” “Best Airline in Brazil,” and “Best First Class Airline in North America.” during the travel experience — clean This past year, customers also rated us higher in planes, being on time, courteous em- the six key Customer Experience (CE) focus areas ployees, etc. compared to 2008. Premium customers are giving us How to Create Loyalty high marks, too — on food and wine in First Class, for Continuing to work on our six basic Customer When we rise to the occasion and PriorityAAccess, and for calling them by name and Experience focus areas will always be a priority go above and beyond, we can seal the thanking them for their business. because it’s the foundation for customer loyalty. It’s Front-line employees are truly making the difference what customers expect. When we get the basics right deal on customer loyalty. Take a look because when customers have a good experience they we can begin to build on customer loyalty by exceed- at these high-touch interactions shared are more likely to recommend AA to their friends and ing customers’ expectations. family. Likelihood to Recommend is a good indicator “How we respond to customers and solve problems by customers as to what sets Ameri- of customer loyalty and is also one way we measure when things go wrong is critical,” says Mitchell. “It’s can apart from the rest. The best part? AA’s CE Rewards. the moment of truth for many customers and fodder These are all free. for good storytelling. Did we rise to the occasion when How Likelihood to Recommend (LTR) relates things went awry or let the customer down? We’ve to Customer Loyalty all been to parties and heard stories about how we Here’s a Top 10 list of actions that cus- If you could package together everything that we handled a challenging travel event.” deliver to our customers, LTR best summarizes how We also create customer loyalty by simply providing tomers repeatedly tell us are we stack up in their eyes. Quite simply, it’s a direct high-touch service that is free. Each of us can provide “Why I fly American.” reflection of what customers say about American. customer service with a smile for starters. Did their experience inspire positive AA storytelling to friends and families, or did their experience Our Brand and Customer Loyalty 1. Smile — it’s the universal language. motivate them to speak negatively about American? “Our airline has more than 80 years of experience, 2. Personalize the experience by calling When we win over brand promoters (those who say which is the genesis of why we understand custom- good things about AA), we set ourselves on the path ers better than any other airline,” Mitchell says. “Our the customer by name. to higher customer loyalty. experience is our strength and it’s why customers 3. Eagerly resolve problems. count on us day in and day out to deliver the best. What is American’s Likelihood “Creating loyalty among each and ever y one of our cus- 4. Listen, really listen. to Recommend? tomers is our goal because loyal customers spend more 5. Make the customer feel like they are A year ago, American scored in the low 70s in the money with us,” continues Mitchell. “Strengthening your only customer. LTR measure, but in 2009, we raised LTR to the 75-76 our revenue base puts us on a path to profitability.” range. “We’re moving the dial in the right direc- Earning customer loyalty is a key tenet under 6. Keep the customer informed. tion, but so are other airlines,” says Mark Mitchell, FlightPlan 2020. It’s all about delivering value for 7. Thank the customer for their Managing Director – Customer Experience. “We every customer and differentiating the travel experi- still have work to do because great brands with the ence for our Premium customers. A new decade. A business. most loyal customers typically score in the mid- new opportunity. Being the best for our Premium 8. Be positive. Attitude is everything. 80s in LTR, as measured by Customer Satisfaction customers and for those who fly only once a year. Have fun with your job. Surveys (CSS).” Are you in? 9. 10. Anticipate the customer’s needs. Trending Up in Customer Experience It takes a lot less money to keep current customers happy than to find new ones. This past year, customers also rated AA Experience. “We still have work to do higher in the six key Customer Experi- because great brands with the most loyal When loyal customers talk positively ence focus areas — delay management, customers typically score in the mid-80s about and promote American to their onboard interactions, gate and boarding in LTR, as measured by Customer Satis- friends and family, we have the oppor- interactions, cabin interior, and baggage faction Surveys (CSS).” tunity to earn more loyal customers and handling and baggage resolution. We also create customer loyalty by provide high-touch service. Then the “We’re moving the dial in the right direc- simply providing high-touch service that tion, but so are other airlines,” says Mark is free. Each of us can provide customer positive word-of-mouth continues. Mitchell, Managing Director – Customer service with a smile for starters.

First Quarter 2010 FLAGSHIP NEWS 7 American Eagle: Celebrating the Past, Looking to the Future Flagship News sat down with Peter Bowler, President and CEO of American Eagle, for a look back at recent events and to see what’s ahead for American’s regional partner.

What’s new at American Eagle? Like most of the industry, 2009 was a challenging year for the Eagle team. We reduced capacity in response to the declining demand for air travel — and with revenue down, we’ve been working extremely hard to control our costs. Nevertheless, it’s also an excit- ing time for Eagle — in November, we celebrated 25 years of providing service to American Airlines and achieved one of our key objectives by finishing the year American is very focused on improving American Airlines. To do that, Eagle has a number of ranked within the top three regional carriers in terms the Customer Experience. What do Eagle’s initiatives underway for this year. We will expand our of Controllable Completion Factor. In December, we customers say about your service? Flight Operations Quality Assurance — or FOQA — exercised the options we’ve long held to purchase 22 Because more than half of Eagle’s customers connect program to capture key operational data on more of additional CRJ-700 aircraft. For the first time, they’ll onto an AA flight, they’re really both of “our” custom- our aircraft, which enables us to continually revise and be configured with a First Class cabin, so we’re all ers — so we’re keenly aware of the service levels we improve training for our pilots and mechanics. We’re looking forward to the first of these aircraft being provide and work to ensure that we’re consistent with also conducting safety training for all of our front-line delivered in mid-2010. AA standards. When we survey our customers using employees to further reduce employee injuries, even the same online survey that American uses, we find though we are already the safest in the industry when What prompted Eagle to add First Class seats that satisfaction levels on our regional jets are right in it comes to this important metric. We’re investing in on these new CRJ-700 aircraft? line with how American’s customers rate their travel new technology to provide our front-line employees While it’s a first for Eagle, the vast majority of our in the main cabin on MD-80s. In fact, Eagle scores with the tools they need to work more efficiently and regional competitors already offer a First Class higher than the mainline on some metrics! Last provide better service. We’ve introduced onboard cabin in their larger regional jets. So competitively, October, Eagle had the lowest number of customer computers on most of our ramp vehicles at our largest it’s important for American Airlines to be able to complaints of any airline in the DOT’s rankings — hubs in Dallas/Fort Worth and Chicago to improve bag offer a Premium class product on a portion of their mainline or regional. And in the third quarter of last delivery and overall coordination. And we’re rolling out regional network. We’ll also be retrofitting our cur- year, we scored our highest “overall experience” rank- bag scanners to improve accuracy and further improve rent fleet of CRJ-700s to add a First Class cabin, ing in Eagle’s history. My Eagle colleagues do a fine job our on-time departure performance. with those modifications scheduled for comple- and I believe we are living up to the high expectations tion by next summer. Not only will we introduce that are associated with the AA brand. Any final thoughts? a roomier First Class seat, but we’ll offer the same All of us at Eagle are focused on being the best partner food and beverage selections that AA provides on What’s in store for Eagle in 2010? for American Airlines and recognize that our success similar flights — ensuring a consistent Customer Job number one is to continue providing safe, reli- depends on AA’s success. Our vision is to be the safest, Experience for our Premium customers throughout able, and dependable service to our customers — and most reliable, and most successful regional airline for the AA network. by “customer,” I mean both the traveling public and our customers, employees, and shareholders. Going the Extra “Smile” for Customer

Earning (and keeping) Customer Loyalty is even consider another airport — Ontario is always always a focus at the Ontario, California, my first choice. As an employee of a retail-service airport. Whether it’s with cakes or a company and an everyday consumer, I wish every smile, the AA Ontario team works hard customer-service organization showed the dedication to keep their frequent customers flying on that the Ontario team does.” American again and again. And it works. Special recognition of our Premium Customers hap- Mike Thiesen, an Executive Platinum pens throughout the system, including the Premium AAdvantage member, says, “I cannot speak Customer in Coach Program that recognizes custom- highly enough of the American staff. They ers even when they are not sitting in First or Business are always warm and helpful, not only to Class. These passengers are essential to American — me, but my family members. I do have AAdvantage elite members represent only 7 percent of other options for traveling to/from Texas the active membership base but generate nearly half and Southern California, but would not of AAdvantage flight revenue.

FlightPlan 2020 in Action (L to R) Dannielle Silas, Flight Attendant, LAX; Sherri Shaffer, Agent Ops Coordinator, ONT; Yolande Barclift, Flight Attendant, LAX; Susie McGinley, Agent, ONT (retired); and Leanne Vela, Flight Attendant, LAX serve up birthday cake and goodwill to Premium Customer Mike Thiesen, Director of Properties for Sears/Kmart.

8 FLAGSHIP NEWS First Quarter 2010 The Arrival of 45 New Aircraft in 2010 Strengthens American's Fleet FlightPlan 2020 Supports Investing Wisely in Fleet Additions

In January, customers and crew mem- That translates to about 800,000 gallons which are larger and allow customers to bers departing from Chicago stepped of fuel saved per aircraft per year. load roll-aboard luggage wheels first. onto a gleaming new Boeing 737-800 Customers love the new jets. The 737s These investments reflect our jet, excited about the expanded ameni- feature a digital in-flight entertainment continued commitment to keeping ties and added comfort. American’s fleet system in the First Class and Coach cab- American competitive in the eyes of renewal and replacement program is key ins. New articulating seats in both cabins the flying public. More than ever, we Blog to keeping American competitive as we are more comfortable and spacious. The need to ensure that we have a product start the next decade under FlightPlan new aircraft have 10-inch LCD screens customers depend on for reliability, 2020. We must invest in new aircraft, mounted under the overhead storage bins, safety, and comfort. Join the facilities, and other critical infrastructure to deliver a better Customer conversation on Experience if we’re going to succeed in the future. AA is competing with efforts that affect airlines like JetBlue and Virgin America that have young, modern fleets. Even traditional competitors like Continental you and our have younger fleets than AA. “First and foremost, we are renewing customers. our fleet which is among the oldest of large U.S. carriers,” says Chuck Schubert, Managing Director – Corporate The Blog is Planning. “Secondly, the new aircraft we are taking are more cost-efficient to oper- available on . ate, more environmentally friendly, and more comfortable for our customers.” The fleet renewal effort began with Welcome to the fleet! AA’s newest addition lifted off from Boeing Field in Seattle on January 18. the delivery of 31 Boeing 737-800s Aircraft 3EX is the first of 45 scheduled B737 deliveries for 2010. in 2009 and continues with 45 new Boeing 737s to be delivered this year followed by another eight in 2011. These new aircraft represent the first new narrow-body aircraft delivered to American since 2001. AA is also committed to the acquisition of up to 100 Boeing 787 Dreamliners sometime in the middle of the decade. In addition, American Eagle will take delivery of 22 new Bombardier CRJ-700s beginning later this year. Even in an uncertain economy, the investments make financial sense. “Clearly, the purchase of new aircraft is a huge investment for our company — several billion dollars,” says Schubert. “Fortunately, during 2009, we announced over $5 billion in financing — over $1.6 billion directly tied to these new aircraft deliveries. Given the turmoil in the capital and credit markets, this investment represents a strong belief in American’s future.” Fleet enhancements improve the Customer Experience and the bottom line. With improvements in engine technology and enhanced aerodynamics, the new aircraft will consume 35 percent less fuel On a mission: 50-year employee picks up new plane. (L to R) ORD Chief Pilot John Burton stands outside at Boeing Field with James Ford, 50-year per seat than the aircraft they replace. STL SkyCap, his son, NY First Officer Kevin Ford, and American’s newest addition, aircraft 3EX, a brand new B737.

First Quarter 2010 FLAGSHIP NEWS 9 VP – Corporate questions Communications and Roger Frizzell Advertising Five Questions with Roger Frizzell about AA’s Social Media Presence Facebook, Twitter, YouTube — What’s the Buzz? Connecting with high school friends through Operation Iraqi Children. black community. Facebook, receiving updates via Twitter, or Our Admirals Club is also on Twitter; they have Finally, we’ll continue to expand and enhance visiting YouTube to catch the latest Web video facilities around the world to promote, plus a really each of our social media sites with more content sensation — all examples of social media — are engaged audience. Admirals Club Twitter follow- and interactivity — all to increase our fan base. changing the way people talk with one another. ers want to know more about new features, offers, These sites are great tools for us to use to commu- Roger Frizzell, Vice President – Corporate and deals regarding the clubs. nicate with our customers. Communications and Advertising, recently spoke This type of communication can be a little with Flagship News about the impact these new daunting, but it’s really a great opportunity to get How can employees get involved? channels are having on how AA communicates to know our customers and their views and cre- Become an AA fan on Facebook. Follow our tweets with customers and employees. ate two-way conversations. It’s amazing to think on Twitter and watch our videos on YouTube. We that, as we get more followers, we can reach some encourage all employees to help promote our sites Do you use Facebook, Twitter, 60,000 people at one time and those users send and share the links with friends and family. We and YouTube? our messages to their millions of friends. And what have more than 70,000 people in our company, I use social media to keep up with friends and work, makes these channels really important is that we and I suspect we have a wealth of people who use and to be part of what my kids are involved with at can get feedback — essentially have a dialogue social media, maybe even on a daily basis. college and high school. I visit YouTube to watch instead of a monologue. We already get terrific input from our Employee any kind of video about the Oklahoma Sooners and Resource Groups, including Generation Now, anything to do with college or Olympic wrestling. What is the response to American’s sites so people around the company are already well And, of course, I follow American on all the differ- on Facebook, YouTube, and Twitter? engaged in this space. ent media channels. Response is pretty positive. We first launched our What makes these communication channels so Facebook site in April 2007 with our Travel Bag Stay in Touch with American interesting is the variegated audiences. More and more application. Since 2009, we have increased our people, young and old alike, are jumping on the social fan base by 273 percent — to 44,400+ fans (as of > Facebook networking bandwagon. In fact, the fastest growing press time). We’ve had hundreds of comments to Facebook.com/AA segment of social-media users is age 35 and older. our posts. Our fans really enjoy hearing from us in > YouTube this channel. Youtube.com/AmericanAirlines What is American doing in this We also launched our Twitter site last April, dur- > Twitter area and why? ing the announcement of the new 737-800 aircraft. Twitter.com/AAirwaves > Admirals Club We’ve been dipping our toe into this space for the We now have more than 27,000 Twitter followers, Twitter.com/AdmiralsClub past year, experimenting with different media and and we found that just creating dialogue with our how American can best benefit from being part of customers on social media helps solve matters. Facts about Facebook: this growing arena. And then there’s YouTube. We’ve had over 134,000 > 350 million active users; 50 percent The company’s Facebook page includes many video views. Our most-watched video on YouTube log in everyday > 2.5 billion photos uploaded each month conversations, videos, photos, and discussion room was our new 737s, with 77,000 views — all without > 6 billion minutes spent on Facebook daily posts from our customers about AA. Our team posts any significant advertising or promotional costs. > #1 photo sharing site often on topics ranging from fare sales and customer > Most visitors are between the ages of 35 and 55 issues to answering questions from our customers. What are American’s next steps > If Facebook population was a country, it would We launched our American Twitter account, for social media? be the 4th largest @AAirwaves in 2009. Twitter allows us to talk We will continue to be active on Facebook, Twitter, Source: Facebook.com about company events and promote fare sales in and YouTube. We plan to launch a micro site portal Facts about Twitter: real time and in our own words. That’s challeng- for American — a one-stop shop for all our social > 27.6 Twitter active readers ing because you only have 140 characters — and media sites which will include stories on commu- > 18 million actually twittering there’s nothing short about our business. We also nity, diversity, and socially relevant topics. > 54 percent female get a lot of customer questions on Twitter, which In addition, we are looking at a presence on > The average visitor is between the ages of 18 and allows us to respond directly and quickly. the professional recruiting and networking site, 49; 18 percent are over 55 years of age > By 2010, eMarketer states that 15.5 percent of Our most popular Twitter topic last year was LinkedIn. We know many professionals and busi- U.S. Internet users will be on Twitter the Wi-Fi capability on our aircraft. And when we nesses use LinkedIn, so we’ll use this channel for Source: Quantcast.com and The Wall Street Journal tweeted our fare sales in August — with only three recruiting, delivering messages, and establishing tweets — more than 43,000 people forwarded or business relationships. Facts about YouTube: “retweeted” those messages. We’re also trying out new areas of social media. > Every minute, 20 hours of video uploaded > Estimated 84 million users a week, up from 60 We’ve been posting all kinds of videos on Black Atlas, our online community created by AA million last year YouTube, such as our new 737-800s, AMT for African-American travelers, has features of a > #4 site in the world (Aviation Maintenance Technician) skills com- travel site but also allows community members to Source: Compete.com petition, Admirals Club 70th birthday, and share experiences and resources specific to the

10 FLAGSHIP NEWS First Quarter 2010 Central Baggage Claims Success with “Lean” Techniques Initiative Results in Improved Customer Service and Work Environment Consistent baggage handling is a basic through continuous improvement, “The team added the responsibility though. Our next challenge is to sustain customer expectation. Handling bag- according to David. of self-managing their tasks. We also and grow these Lean improvements.” gage claims must be done effectively and efficiently to Earn Customer Loyalty. Reducing the Time Necessary Lean is a systematic ap- The Lean results are clear: In the past, processing these claims to Close a Claim >> 25 percent reduction in time took as long as 90 days. “That’s just way TMAC trained the CBS Claims team proach to identifying and needed to close a claim outside a too long,” says Debbie David, Manager on the Principles of Lean Office and recent volume reduction – Central Baggage Service, HDQ. “So Value Stream Mapping which reviews eliminating the waste >> 25 percent reduction in daily we set out to do something about it.” current processes and improves them. (activities that do not process waste at Correspondence Central Baggage Services (CBS) part- TMAC helped the Claims team reduce Desk nered with the Texas Manufacturing a five-step process to three. In addition, add value to customers) >> Streamlined information flow Assistance Center (TMAC) after deter- a new open environment promotes through continuous >> Increased efficiencies at mining that Lean processes could make information sharing, troubleshooting, Correspondence Desk Intake the claims process more efficient and and problem solving at a much quicker improvement. >> New training manual improve the customer experience. Lean pace. Another improvement is that case >> Enhanced communication is a systematic approach to identifying files are now assigned immediately. “Our employees are now empowered and eliminating the waste (activities “For employees, implementing Lean eliminated or reassigned several admin- to make their ideas known and act as that do not add value to customers) measures was quite radical,” says David. istrative tasks. We’re not stopping there, change agents,” concludes David. Enhancements Continue in “We Are Family” Initiative Employees Share Their Experiences about Non-Rev Travel

identify the dedicated space and com- Service Manager, and he calmed me puters, airports installed plaques and down and corrected the problem. He stickers displaying the non-revenue put me back on the standby list with my ribbon logo. When travelers see the actual sign-in time from Atlanta. He emblem, they know they’ve reached an saved the day and started our vacation area reserved for them. off right.” Employees and their guests continue — Xaviere Chatagnier, Flight Attendant, to share feedback about their travel St. Louis experiences. While most messages are complimentary, occasionally missed >> “Thanks to all employees at Chicago opportunities are identified and then (ORD). I was stuck at the airport one corrected so they don’t happen again. Sunday and experienced the new Here’s what they’re saying about non- employee lounge. It was a very nice rev travel: place to sit back and relax.” — William Klusman, Aircraft >> “I traveled from Springfield, Maintenance Technician, Tulsa Missouri, to Vancouver, British Columbia, with my wife and parents. >> “I am increasingly frustrated with Nick Klumb, Station Agent, Springfield, co-workers who create PNRs and do was very helpful with a passport issue. not cancel them. I booked a flight with We were able to go home and get the four available seats and 14 non-revs Amanda Mazzara, Airport Services Administrative Assistant, feels welcome to use the computer passports, and by the time we returned, meal listed. Given that the later flights displaying the new “We Are Family” signage. Nick had already plugged in our next were full and I was traveling with a 4 flights. Thanks, Nick.” year old, I opted to use D1 status. As it Airport Agents made significant prog- Efforts also improved the comfort — Cullen Reid, Crew Chief Line turns out, the 14 non-revs did not show ress last year in improving the non- and self-sufficiency of non-rev travelers. Technician, Springfield up and I did not end up needing the revenue travel experience. Beginning Several airports installed lounges dedi- D1. Non-rev travel is hard enough, let with a simple request to treat each cated to travelers waiting for flights, >> “I flew to Charles De Gaulle from alone when co-workers aggravate the other with respect, both Airport Agents and most locations now have designated Miami when I was deleted from the stress by listing and not showing up.” and travelers refocused on making their Quantum sets in the gate areas for use standby list. My husband and I were so — Michael Ryan, Principal, Corporate interactions positive events. by travelers. To help non-rev travelers upset. I located Mark Liguori, Customer Development, HDQ

First Quarter 2010 FLAGSHIP NEWS 11

Charting Invest Wisely

American has substantial assets. Every day, we depend on our airplanes — both Our Course new and old — our facilities, and our technological infrastructure. Although FlightPlan 2020 — we live in a capital-constrained world, to succeed, continued investment in these Our Framework for Success areas is paramount. Our fleet must be competitive. We Earn Customer FlightPlan 2020, our new strategic frame- have financial commitments in place for Loyalty all 63 of our remaining Boeing 737-800 work to guide us in the new decade, is about a shift in focus — from what we do to survive deliveries through 2011. New technology initiatives will It’s about delivering value for every the next few months to what kind of airline transform the way we do business customer, and differentiating the travel we will be in the next decade. from the inside out. These efforts will experience for our Premium customers. streamline, modernize, and simplify Customer loyalty starts with delivering technology solutions so that we are the basics — safety, dependability, more flexible and cabin cleanliness, baggage handling, focused on the courtesy, and professionalism. It’s what customer from our customers expect and the first step to earning loyalty. Strategic customer every angle. Key structural loyalty is ensuring that our higher- components to yielding customers — who often fly in the customer First or Business Class — are delivered experience are an exceptional experience. the facilities — This new decade brings a new the counters, opportunity to offer the best to both our the lounges, Premium customers and to those who fly the terminals only once a year. Staying focused on the themselves. things they value most. It’s critical to Invest Wisely so we can make the most of the opportunities in front of us.

Want to Know More? For more information and articles about FlightPlan 2020, visit the FlightPlan 2020 section of Jetnet.

12 FLAGSHIP NEWS First Quarter 2010 FlightPlan 2020 — Securing Our Future Making a Bold Move “While we are certainly not out of “We have formidable strengths, including tough challenges, it’s important for a powerful franchise, a broad network, the everyone to understand we are focused leading customer loyalty program, and on the future.” the best management team. One of our great strengths at American is that we are — Gerard Arpey, very competitive — we want to win.” Chairman and CEO — Tom Horton, Executive Vice President – Finance and Planning and CFO

Be a Good Place for Good People

The average employee tenure at American is 25 years. That says a lot. That stands for tradition. Together, we embrace diversity to create a place where each of us can be ourselves. We treat each other with respect and dignity. And we hold each other to that standard. Our future depends on creating and maintaining a good place to work and build a career. We value safety, professionalism, and collaboration. Everybody’s contributions are valued Strengthen and and respected, and everyone’s ideas are Defend Our not only welcome but sought out. Have fun, recognize others, and celebrate your Global Network successes. Additionally, we offer market based Our global network allows us to compensation that doesn’t begin and Fly Profitably transport millions of people around the end with wages — rather, it’s all the world. With the implementation of our benefits of employment, including We must compete — and compete hard corner post strategy, we will concentrate rewards for superior performance. — on all fronts — every single day. We will our resources to compete to win in Our objective is to provide employees continue to do the hard work, and make DFW, Chicago, Miami, New York, and with base compensation that is the necessary changes to be competitive Los Angeles. This strategy will shape competitive with the market, as well as and profitable the success and growth of our entire comprehensive health and retirement We will pursue every opportunity to network in the United States and future benefits. We also want to provide increase fares to improve revenue. We will international growth. We also must employees the opportunities for real merchandise our products and services augment our own network by forming upside and incentives that encourage more aggressively using fare bundles and partnerships with other airlines to create great performance and offer tangible a la carte options. the best global network. rewards when we achieve our goals and No business can sustain itself, grow, or In 2010, we anticipate winning antitrust perform well against our competitors. create job security without profits. We immunity that will level the playing must drive revenue from traditional and field betweenone world and the Star non-traditional sources and contain or and SkyTeam alliances; thus securing reduce costs in every area of our business. our opportunity to serve many more customers on AA flights.

First Quarter 2010 FLAGSHIP NEWS 13 Families of Fallen Military Experience True Texas Hospitality As Dec. 9 dawned, several American Airlines and American Eagle gates had been transformed into winter wonder- lands. From special performances of the “Sugar Plum Fairy” to serenades by entertainer Lee Greenwood and sur- prise appearances by jolly old St. Nick himself, American and Eagle employee volunteers created a sense of fun and excitement for some special passengers (L to R) Tom Del Valle, Gary Sinise, Jim Palmersheim, and Steve Blanken- headed to DFW for Snowball Express ship onboard the C17 freighter that made the 10-hour flight from Ger- many to Afghanistan where they spent Thanksgiving with U.S. troops. 2009. More than 1,300 spouses and children of fallen military personnel Captain Steve Walker, Miami, welcomes aboard Snowball Express Serving Up Goodwill arrived in North Texas from more than participants. and Good Food 40 cities across the country to participate in American Eagle are truly grateful to our the annual Snowball Express. This is the first military servicemen and women and their Thanksgiving was very memorable for the AA team traveling time Snowball Express has come to the Dallas/ families for the sacrifices they have made to Afghanistan to personally thank U.S. troops. It was part of Fort Worth area. to protect the freedoms our country enjoys,” a USO-sponsored entertainment tour led by actor Gary Sinise. says Captain Steve Blankenship, Managing AA representatives Tom Del Valle, Senior Vice President American — The Official Airline of Director – Veterans Initiatives (VI), who – Domestic Airport Services; Captain Steve Blankenship, Snowball Express oversees AA’s Veterans/Military Initiatives. Managing Director – Veterans Initiatives (VI); and Captain Each year, not-for-profit Snowball Express “It was truly a pleasure to host these special Jim Palmersheim, Director – VI visited Landstuhl Regional arranges an all-expenses-paid trip to provide families in our hometown.” Medical Center in Germany to visit wounded warriors. They hope and new memories for the children and Hundreds of employees donated their time then traveled to three military bases in Afghanistan to deliver spouses of those who lost their lives while — everything from flying the planes to coor- humanitarian aid, defending our nation in Iraq and Afghanistan. dinating flight operations to decorating gate including school sup- American provides chartered aircraft for the areas — to help make the trip a success. One plies and children’s Snowball Express families. Flight Attendant donated hundreds of hours to shoes, along with a For this year’s event, the families received hand craft 5,000 special color-coded baggage few special gifts for a true taste of North Texas as they enjoyed tags for the families’ luggage. the troops. visits with the Dallas Cowboys and the Dallas “When I was nine years old, my dad died as Cowboys Cheerleaders, attended a Dallas a Marine Colonel,” says Captain Steve Walker, Excited troops unload the gift of more than Mavericks game, and were special guests at Miami, and a former Marine Pilot who volun- 5,000 steaks for soldiers the Mesquite Championship Rodeo. teered to support Snowball Express. “So, I get in Afghanistan. “All of us at American Airlines and it. We have to let them know we love them.”

Future Frequent Fliers Receive First Flight Certificates Young passengers Miranda and Madison Cummings (L to R) recently received their First Flight Certificates on a flight from DFW to San Antonio. To boost Customer Experience, Flight Service began issuing certificates commemorating a child or young adult’s first flight last fall. The certificates include the date, flight number, departure, and destination cities, and are signed by the Pilot and Flight Attendants. “This is a fun way to acknowledge new flyers by giving them a keepsake,” says Lauri Curtis, Vice President – Onboard Service.

14 FLAGSHIP NEWS First Quarter 2010 Around Our Community includes information about what people in our AA community are doing, whether at work or in their local area, to make a difference. To submit an idea or a story, e-mail [email protected].

Do More for Your Charity of Choice

Participate in the new American Volunteers Coach Class on American Airlines, American Rewards Program. Thousands of employees Eagle Airlines, and American Connection to make significant contributions to the global any destination served in Canada, the 48 con- communities where they work and live — from tiguous U.S. states, Mexico, Central America, Tokyo to Tegucigalpa, from Paris to Port-of- Caribbean, Bermuda, and the Bahamas, or Spain, and from San Francisco to San Juan. >> 50,000 AAdvantage Miles, or “Since the American Volunteers launch in >> Two Admirals Club day passes late 2007, employees have logged more than Employees who log 25 or more hours each 30,000 volunteer hours in the American quarter will also be entered in a drawing. Plus, Volunteers system,” says Sam Santiago, they’ll have the chance to vote on a charity to Director – Employee Giving and Volunteerism. receive an additional grant from the Employee “The American Volunteers tool facilitates and Charitable Fund. The organization receiving supports our employees’ passion for com- the most votes will receive a grant of up to munity service whether they’re involved with $2,500. Hospital Celebrates walks, food drives, fundraising, races, or any other volunteer activity.” Show Your Volunteer Spirit Island Holiday In 2010, employees can increase the value Remember to log your volunteer hours on Employees in Trinidad and Tobago hosted a Christmas and impact of their volunteer service through American Volunteers (on Jetnet) to be eligible party for patients of St. Ann’s Psychiatric Hospital, donating the new Rewards program. This initiative to participate in this new Rewards program. time, food, and presents. (L to R) Shelly Ann Ragoonanan, recognizes and increases the value of employ- Passenger Service Lead Agent; Michelle Reyes, Accounting ees’ volunteer contributions while providing Need volunteers for a community Clerk; and Bernadette La Coa, Financial Coordinator. some charitable organizations with additional project or charity fundraiser? resources to deliver their mission. American and American Eagle em- How Does the Rewards Program Work? ployees, retirees, and family members Employees with 15 or more hours of volunteer are here to help. Find opportunities to service logged each quarter in the American Volunteers system will be eligible to participate volunteer or take advantage of event- in a drawing for prizes to be awarded in the manager resources on the American employee’s name to their charity of choice: Volunteers site on Jetnet. >> Two travel certificates good for travel in

Orlando Wins Mr. FODDY Award American Airlines received The Mr. FODDY award from the Greater Orlando Aviation Authority in recognition of AA’s awareness and battle against Foreign Object Debris (FOD). The Orlando (MCO) FOD Squad performs Five-Year-Old Boy Ensures daily FOD walks on the ramp area in addition to constant surveillance for Happier Holiday Journeys debris. (L to R) Future pilot, Trace Maus of Fort Lauderdale (FLL), Everett Lowe, Mechanic, conducts a joined by Captain Keith Lang, DFW, provided holiday cheer FOD ride with the Airport Authority to soldiers traveling during the holidays. During a recent lay- every Wednesday to ensure the ramp over at FLL, Maus partnered with AA employees to donate

Top Row (L to R) Lou Lesner, Fleet Service Clerk; Terri Cabrera, aprons, taxiways, and runways are clear gift certificates to servicemen and women in the airport Fleet Service Clerk; Robin Cooper, Manager; Annie Moore, of FOD. FOD walks are also conducted terminal. Tony Sanchez, Customer Service Manager – Fort Terri Regis, Steven Hernandez, Forrest Fortenberry, and Juan daily by a ramp crew. The award itself Lauderdale, presented Maus with an American Airlines Barranco, all Fleet Service Clerks. Bottom Row (L to R) Jay Cepeda, Fleet Service Clerk; Rick Weimer, Fleet Service Clerk; is constructed of debris collected by lunchbox for his kindness, and employees also saluted the Iliana Bruno, Manager; Angel Pares, Fleet Service Clerk. airport personnel. boy as he departed.

First Quarter 2010 FLAGSHIP NEWS 15 American Airlines can attract customers with competitive fares, convenient schedules, pre-reserved seating, and the best frequent-flier program in the industry. But it’s employees that keep them coming back.

These real-life stories from customers about employees they’ve encountered in the air and on the ground show the power of great customer service.

Teri Truss Flight Attendant, Chicago, Illinois Teri Truss ‘Got Milk’ I experienced exceptional service from a Flight Attendant who was not even on our flight but went above and beyond the call of duty to assist us when we traveled from Atlanta to Chicago with our 10-month-old son. We were exhausted when we arrived in Chicago and inadvertently left a specialized cooler for breast milk and baby food under our seat. The Gate Agent found it and Teri Truss took it upon herself to determine the owner of the cooler. She searched the flight manifest and quickly noted we were the only family traveling with an infant. She then called to tell me that she had located the cooler. We had driven through gridlocked Chicago traffic, and our infant was already vocally indicating his impatience. Turning around was not an option. Truss uti- lized some wonderful critical thinking skills and found a way to get us the cooler. I’ve been an Elite AAdvantage member for several years now. Only on American Lynda Franka have I seen such shining examples of strong customer service. Reservations Representative, Phoenix, Arizona Kevin Heindorf, Milwaukee, Wisconsin AAdvantage Customers Look to Franka for Great Trip Planning I recently made a reservation through Claudia Ariza Farshadi Lynda Franka on the AAdvantage line. Ticket Agent, Miami, Florida As a prior VP of Customer Care, I have Ariza Farshadi Keeps Family Together for Trip Home to share that she went above and beyond Due to long lines at immigration, my family recently missed our connecting to help us and was an absolute joy. She flight home from vacationing in the Dominican Republic. Flights to New York was also well-versed in the miles pro- from Miami were booked solid and it was difficult to find available seating for our gram and was able to help us create a family of five, which included one infant. Claudia Ariza Farshadi identified a way great itinerary. She is very good and home and, remarkably, was able to keep us seated together. For one of the flights, this note is to thank you for hiring, and she had to obtain special approvals. While travel can sometimes be inconvenient, I just as importantly retaining, people want to acknowledge her terrific efforts. She represents true customer service and like Lynda. she went the extra mile. Lynn Kollaritsch-Durant, Sung Chi, New York, New York Plano, Texas

surprised us by being there to provide Vicki Webber equally great service on our return. Reservations Representative On the first flight, upon arriving at the Phoenix, Arizona airport ticket counter, Richard ensured Webber Provides Compassion to our tickets were marked as requiring Mourning Customer assistance and offered to personally escort Vicki Webber is a fine asset to AA. us to the gate. He then assisted us in I called your AAdvantage Customer clearing security and helped take my wife Service Department and spoke with down the ramp when we boarded. Upon Ms. Webber regarding a promised returning to Calgary, we were surprised reinstatement of air miles for a pair of when Richard made the extra effort to return flights not taken from Newark to Richard Sushelnitsky be a familiar face when we departed the Los Angeles due to a family emergency. Airport Agent, Calgary, Canada aircraft. Richard also made sure a small Ms. Webber handled my questions Sushelnitsky Lends Helping Hand for child traveling alone was well taken care and my issue to my satisfaction and is not accustomed to in an otherwise Couple Before and After Vacation of. It’s rare to find an employee that dem- with aplomb. Additionally, during our bureaucratic encounter regarding an Thanks to Richard Sushelnitsky at onstrates this level of care and commit- conversation, I informed her that while air miles issue. She simply made a dif- Calgary International Airport. My ment to his job. Thank you. on our vacation in New England and ference in our lives that day because of wife is mobility-challenged, and on a Canada, my wife and I lost a son due the very human touch she offered. recent flight to Atlanta, Richard pro- R. Merle Forseth, to a car accident. Vicki treated me with vided exemplary service to us. He then Edmonton, Canada a kind of warmth of humanity that one Chris Chialtas, Tucson, Arizona

16 FLAGSHIP NEWS First Quarter 2010 Juana Dangeros Passenger Service Agent, Paris, France Dangeros Makes a Difference in the City of Lights Juana Dangeros was amazing. She was prompt, professional, kind, and extremely efficient. She offered to put me on the standby list for the next flight to Atlanta, and thanks to that effort, I got a seat on a flight home. Her efficiency made a huge difference in ensuring a pleas- ant journey from Paris to Dallas to Atlanta. This type of service doesn’t come along every day, and that’s one of the reasons I remain a loyal customer of AA.

Mary Adams, Dallas, Texas

Shelley Carter Gate Agent, Memphis, Tennessee Gate Agent Offers Consistent Memphis Hospitality Shelley Carter is an AA Gate Agent in Salim Patel Memphis. Each and every time I have Flight Attendant, JFK dealt with her, she has been so amaz- FA is Key to Trans-Atlantic Service ingly cordial and helpful that I feel This letter is long overdue. I’m compliment- compelled to make sure that someone ing Salim Patel on consistently great ser- at AA knows about her. She is an abso- vice. I fly once a month from New York to lute joy to deal with. London. The kind service Patel displays to everyone is first-class. William Griffing, Memphis, Tennessee Nesrin Anjollie Feradov, New York

Donna Bouillon Passenger Service Agent, Frankfurt, Germany Bouillon Helps Passenger Make Anniversary Date I was stuck in Frankfurt on my anniversary when another airline cancelled my flight. I went to multiple airline ticket counters looking for a seat home. Only Donna Bouillon was willing to help. She was flexible, professional, and understanding. In fact, she was eager to help. I will always fly American from now on — her service has absolutely changed the way I will fly for business and pleasure.

Kim Patrella, Lincoln, Pennsylvania

First Quarter 2010 FLAGSHIP NEWS 17 Delivering Customer And the winner is … oneworld — The World’s Leading Airline Alliance Solutions for the Seventh Consecutive Year Creating Solutions Helps Passenger Sales oneworld was recently named the Understand Customer Priorities World’s Leading Airline Alliance for the seventh consecutive year at the Passenger Sales embraces a discipline “As consultants to the corporations and World’s Travel Awards — described by that develops business relationships travel management companies, CCBS The Wall Street Journal as the “travel and creates a better understanding of allows us to create programs and solu- industry’s equivalent of the Oscars.” American’s customers’ businesses and tions that help our customers achieve oneworld has retained this title since delivering solutions that help them grow. their own business goals.” the award’s inception in 2003. A strategic sales tool called Creating American works hard to build strong The World Travel Awards are based Competitive Business Solutions (CCBS) relationships with its corporate accounts on votes cast by more than 180,000 helps the Sales team recognize the busi- to enhance an all-inclusive partnership travel agents and other travel profes- ness priorities of American’s customers and obtain more of their business. With sionals worldwide. before they talk about travel priorities. a greater stake in an account’s business “oneworld’s focus has always been Essentially, CCBS helps the Sales well-being, CCBS helps to integrate on the quality rather than the quan- team identify new revenue opportuni- sales strategies that encompass more tity of our members, so it is very ties within the corporate customer than just finding the best price and the heartening to retain our record of the most knowledgeable people in the segment and differentiate AA’s product best deal for a company. being the only alliance ever to win travel industry worldwide.” offerings from our competitors. “Our sales managers get to know the this World Travel Award since it was oneworld is also a three-time winner “This tool allows us to think more customer better than AA’s competitors,” first presented seven years ago,” says of the Best Airline Alliance title from strategically as a business partner,” says says Carter, “and ultimately, the effort John McCulloch, oneworld Managing Business Traveller magazine, making it Jim Carter, Managing Director – Eastern builds customer loyalty and a long-term, Partner. “It is a tremendous vote of the winner of more top international Sales Division and Champion of CCBS. profitable business relationship.” confidence once again from some of awards than any of its competitors. New Priority Baggage Initiative Adds Value for Best Customers Bags for Premium Customers are arriv- says Hans Hauck, Manager – Baggage ing first in the baggage claim area Operations, HDQ. “Shortly after launch, thanks to a new Priority Baggage initia- reliability for delivering Priority Bags tive launched last year. It’s just another reached over 90 percent compliance — way the company is Earning Customer better than our competitors that offer a Loyalty — a tenet of FlightPlan 2020. similar product.” Eligible customers’ bags are tagged Understanding the needs and value with a bright orange bag tag at check- of our Premium Customers has long in — allowing for easy identification as been a priority of American, according they move through the airport. Fleet to Hauck. “The Priority Baggage initia- Service Clerks then look for the spe- tive is a great example of how we will cially tagged bags and load them onto continue to Earn Customer Loyalty by the aircraft last, making them more Marcos Bozzolasco, Agent, Montevideo, Uru- Chris Roussos, Premium Customer, gives a big differentiating the experience for these guay, applies the new Priority Bag tag ensuring “thumbs up” when his bag arrives first in the accessible for their counterparts in the the Premium Customer’s bag will arrive first in DFW claim area. valued travelers,” he concludes. arrival city, allowing for quick unload- the customs claim area in Miami. ing and delivery to the baggage carou- Enhancing the Travel Experience sel. In many instances, the bags arrive Platinum customer, adds, “I travel for Premium Customers at the carousel before the customer does quite extensively, and with the — providing an extra-special touch that Priority Baggage, I can walk away can make a difference in these valued from baggage claim within five min- Customers traveling in First or Busi- Baggage product. During check-in, customers’ choice of airlines. utes of when I arrive. I have nothing ness Class, along with Executive Agents are prompted to apply but total praise for your new Priority Customers Appreciate Baggage product.” Platinum, Platinum, Emerald, Sap- bright orange Priority Bag tags to the Extra Touch “This kind of service can only happen phire, ConciergeKey, and AAirpass eligible customers’ checked items, Dana Rea, Executive Platinum customer, with employees who are totally com- says, “As often as I travel, this new ser- mitted to making this work. Our air- customers are eligible for Ameri- enabling these customers to get vice is much appreciated. My loyalty to port employees have really stepped up can’s recently introduced Priority their bags ahead of other travelers. the airline only continues to increase.” to the challenge of differentiating the Robert Boland, another Executive Premium experience for customers,”

18 FLAGSHIP NEWS First Quarter 2010 Postcards from the Road Dubai, United Arab Emirates

To: The AA Team From: Prakash Subramanian – HDQ

“Dubai is a land of contrasts — the differ- The weather is hot and humid in this des- ent aspects of life there are fascinating,” ert oasis, but there is plenty to do, including says Prakash Subramanian, Senior Data enjoying a change of weather at your whim. Warehousing Administrator, HDQ, who The Ski Dubai Resort, the first indoor ski flew ZED on Emirates. resort in the Middle East, offers snow and “On one hand is the luxury of the Burj Al snow sports year-round, including skiing, Arab hotel, which bills itself as the world’s snowboarding, and tobogganing. only seven-star hotel. In contrast, laborers “Besides the indoor ski park and the use the ferry to cross Dubai Creek,” says Burj Al Arab hotel, sand duning — riding Subramanian. “In the evening you will see in a four-wheel drive Jeep in the desert hundreds of laborers returning from work — camel rides, buying gold, and eating or going to the market on the other side. the fruit of the date palm are things one They all wait in line to get on a ferry, which should do when in Dubai,” explains costs one dirham to cross the Dubai Creek. Subramanian. You can also use a more expensive taxi ride Share your photo and story about your to get to the other side.” trip. E-mail [email protected].

Anniversaries, Retirements, and Memoriam on Jetnet

In December 2009 alone, almost 700 employees celebrated a mile- stone anniversary — 20 years or more with American. Check out anniversaries, retirements, and memoriam in the News section under Dates to Remember on Jetnet.

First Quarter 2010 FLAGSHIP NEWS 19 Heathrow’s Admirals Employees Are Club and Flagship Making a Difference Lounge Get a Face-Lift FlightPlan 2020 in Action! Why’s all that dust at the London a children’s room with TV, computers, Heathrow airport? Just check out the and age appropriate software; compli- renovations underway at our Admirals mentary Wi-Fi; a cyber cafe; and an Club lounge and Flagship Lounge. Both improved business center. facilities are currently receiving exten- The renovated Flagship Lounge will sive renovations that are scheduled for more than double in size to nearly 8,000 completion this year. square feet of lounge space, which seats 134 customers. Visitors will enjoy new shower suites, a cyber cafe, complimentary Wi-Fi, and two TV lounges with flat-panel televisions. “Since our refurbishment we are now able to offer our guests a more robust and eclectic food range which Laurence Rochas, Customer Service Lead Agent, Paris, displays a priority card that helps customers has been exceptionally well received,” get where they need to be at Charles de Gaulle Airport. says Greg Mason, Premium Services Representative, LHR. FlightPlan 2020 in Action is what 2020 in Action is also about how even “Being able to furnish guests with American Airlines employees are doing the simplest ideas can have far-reaching complimentary Wi-Fi and the use every day all around the globe. They’re effects as evidenced by new Admirals of customer-interfacing computers improving the Customer Experience, Club and Flight Service initiatives. has been a great benefit,” comments helping each other, and making the Check out the first quarter edition Marlene Robinson, Premium Services company more efficient. FlightPlan of AATV to see a few samples of these Representative, LHR. 2020 in Action celebrates employees FlightPlan 2020 in Action stories — Rebecca Levett, Premium Services taking the extra step, thinking differ- highlighting examples of American Representative, LHR, adds, “I’m really ently, and owning the company’s — and employees controlling their destiny, over- excited about being able to offer our their own — success. coming adversity, and thinking above the guests the option of a fully equipped In London, workers overcame a diffi- line to help the company move toward a Rebecca Levett and Greg Mason, Premium Ser- vices Representatives, LHR, take in the view child’s playroom complete with age cult situation and are now getting bags new future. of the refurbished Admirals Club at London appropriate computers to use — it’s a where they need to go. At Charles de All the stories can be accessed on the Heathrow. The extensive renovation is sched- definite plus for both parents and their Gaulle, it wasn’t baggage getting lost, but Video Page on Jetnet. uled for completion this year. children.” passengers. Paris employees developed The remodeled Admirals Club lounge Want to know what’s new at all of some innovative ways to help custom- What’s Your FlightPlan 2020 in will offer seating for 230 visitors with our Admirals Club lounges? Follow ers navigate the airport. Meet the team Action Story? a more open, spacious feel. Other them on Twitter at www.twitter.com/ in Los Angeles that is breaking records Share your story with Flagship News at amenities include new shower suites; admiralsclub. and keeping each other safe. FlightPlan [email protected] In with the New — Miami Hub Opens a Spacious New Ticket Counter Area No more purple counters and green “I like everything about it! The new carpeting. AA’s Miami Hub now has check-in area is more clean-cut looking, a modern new check-in area for cus- there’s more space for the Agent and for tomers. The move is part of a complex the customer,” says Maria Hoxsie, Miami project by the Miami International Passenger Service Agent. “The new ticket Airport to consolidate three separate counter free-standing desks make it easy concourses — A, C, and D — in the for everyone. I can invite the customer to north side of the airport into a single step around and choose a seat from the linear North Terminal. The new area map if they want to. It’s easy.” is 290,000 square feet — big enough Argentina customer Laura Cordini to hold five football fields. It contains adds, “It works — the new terminal 58 new ticketing desks, 66 self-service works. It’s a much better look, not so kiosks, 14 curbside check-in spots, and old. The floors are beautiful, no more Leslie Williams, Miami Customer Service Agent, makes a call from American’s newly opened ticket two security checkpoints. old carpets.” counter in Miami. It’s five football fields long and fills with international travelers every morning.

20 FLAGSHIP NEWS First Quarter 2010 Dependability is Key to Earning Customer Loyalty

To successfully execute the tenets of measure for AIP rewards incented all delays on average than our competi- very challenging ATC and weather envi- FlightPlan 2020, it is best to understand of us to look at delays differently,” says tors. During the summer of 2009, our ronments, so it becomes more difficult the very basics of our performance as an Reding. “Sometimes there is a tendency average systemwide delay averaged 22 to compete against a carrier with hubs airline. Customers tell us that depend- to focus solely on one’s own task, and not minutes and at some stations was as in Honolulu or Phoenix, but we can cer- ability is important. In fact, after enough emphasis on helping our other high as 40 minutes. tainly compete well in specific city pairs. safety, dependability is probably the colleagues to provide the best service for “In 2010, in addition to our focus on Our 2009 results generally compare well most important aspect of our Customer our customers. Understanding and help- on-time departures we are looking at against our competition when we look at Experience. Our customers rate us ing in the execution of each other’s roles all possible ways to reduce the length market dependability comparison, but higher when our planes depart and when possible can help us save or reduce of a delay once it occurs,” says Reding. we can do better. arrive on time, even in service aspects precious minutes on a delay.” “When we miss a departure, we have unrelated to dependability. That’s why Direct D-0 reflects those delays over to do all we can to get the aircraft out it’s vital all of us constantly search for which we have control. It does not within 15 minutes or less because many Our 2010 goal ways to eliminate delays and to reduce count delays due to Weather, Air Traffic of our customers make connections and the length of delays once they occur. Control, and System Operations Control a short delay will still allow them to for A+14 is 78.2 mandated delays. make that connection and get to their Improvements Matter — Our “Direct D-0 is a better indicator of final destination.” percent. That Customers Expect Them our teams performance in depend- Operationally, we made significant ability, resulting from the activities we 2010 Goals Support Continuous would be our investments to reduce delays by have direct control over,” adds Reding. Improvement increasing block times and minimum “If we depart on time, we have a high Our 2010 goal for A+14 is 78.2 percent. highest annual scheduled ground times at the end of probability of arriving on time, which That would be our highest annual A+14 2008. These operational changes and drives improvements in our A+0 and in almost 10 years. All dependability and A+14 in almost the continued hard work and diligence A+14 performance and customer on-time performance metrics support of employees have resulted in dramatic satisfaction.” this goal. Our targets for departures 10 years. year-over-year improvements in depend- (D-0, D+15), arrivals (A-0, A+14), and ability. The percentage of our domestic 2009 Resulted in Notable cancellations (Completion Factor) have flights that arrive within 14 minutes of Increases in Longer Delays been set so as to achieve this goal. We Improvements in Key Hubs are at our published schedule increased by Throughout 2009, we continued to also continue to monitor our market-to- the Heart of Our Success almost 8 points, from 69.9 percent of experience a higher number of delays market performance versus our competi- For example, DFW represented 23 total flights to 77.3 percent. In addition, attributed to factors within our span tors (Chicago to New York for example), percent of departures in 2008 and 24 we closed the A+14 gap between us of control. Maintenance and customer to ensure our dependability is at the percent in 2009. As such, DFW has and our top A+14 competitor from 10.6 service issues contributed 76 percent top of the industry in specific markets. a great impact on the overall system points to 6.3 points. Our 87.8 percent of direct delays. We also took longer Many of our hubs are located in some Direct D-0 average. “Improvements A+14 in November was our best A+14 in our dependability are only pos- performance in 18 years for the month sible when there is the dedication of November and the fifth best ever. Glossary of On-Time Performance and commitment of our employees “Unfortunately, as we have improved to deliver an exceptional customer in A+14, so have our competitors,” says experience,” says Marilyn DeVoe, Bob Reding, Executive Vice President Departures Indirect D-0 Vice President and General Manager – Operations. “As a result, our perfor- Percentage of departures that are – DFW. “Today, DFW employees are mance still ranked below most of our D-0 not delayed for factors outside of leading dependability improvement major competitors in 2009.” Percentage of on-time departures the airport employees' control (e.g., efforts with ideas that focus on the Weather, ATC, Crew Resources, heart of avoidable delays.” Everyone Impacts Departure — D+15 SOC, and late inbound equipment Improve Direct D-0 and D+15 to It’s About Commitment Improve Dependability Percentage of departures that de- delays) FlightPlan 2020 is our roadmap to In 2009, Direct D-0 objectives were part within 15 minutes of scheduled success and profitability in the next incorporated into the Customer departure time Arrivals decade. As a company, we are com- Experience Rewards (as part of the mitted to finding ways to improve our Annual Incentive Plan — AIP) to Direct D-0 A+0 performance and dependability across reward the efforts made by employees Customer Experience Rewards met- Percentage of on-time arrivals every tenet. To accomplish that mis- to improve Customer Experience. ric that measures the percentage of sion, everyone needs to be alert to any Systemwide dependability goals were departures that are not delayed for A+14 opportunity to positively impact the created for the entire airline based on factors generally within the control Department of Transportation operation — where any process can be averaging 2007 and 2008 performance. of personnel at a station, including statistic measuring percentage improved; where coordinated action This plan encourages employees from Maintenance, Customer Service, of arrivals within 14 minutes of can lead to progressive change; and every department to work together as a where employee leadership, initiative, Flight, and Flight Service scheduled arrival team to help the airline succeed. and commitment to the customer is “Moving to Direct D-0 as our internal rewarded.

First Quarter 2010 FLAGSHIP NEWS 21 AA Receives Tentative Switching Customers U.S. DOT Approval for to American AA Brazil Helps Other Airlines and Antitrust Immunity Wins New Customers At press time, after nearly two years co-applicants, and we will respond Adriana Paula, Lead Agent Passenger it takes to make it happen. As long as of regulatory review, AA has received according to the time frame established Service, São Paulo, Brazil, recently we have seats, we’re on it. By making it tentative approval from the U.S. in the order. hosted a Customer Experience blog tout- easy for the other airlines, we create a Department of Transportation (DOT) The expected provisional approval ing how their station is really focused lot of good will for American. of its antitrust immunity (ATI) request by the DOT is an important step in on winning new customers and driving We are innovatively supporting submitted with fellow oneworld alli- allowing oneworld members to cooper- additional revenue to American. FlightPlan 2020 by Flying Profitably and ance members British Airways, Iberia ate more effectively in competing with driving revenue. In 2009, we switched Airlines, Finnair, and Royal Jordanian. the Star and SkyTeam alliances, both Here’s What She Had to Say 355 customers to AA and earned an Final approval of that agreement would of which already enjoy broad immu- When our competitors manage off- additional half million dollars by simply pave the way for American, British nity from the DOT. In addition, the schedule-operations (OSO) and over- following our strategy — developing Airways, and Iberia to launch a joint oneworld applicants are continuing sold flights, we seize every opportunity and maintaining good relationships business by cooperating more closely discussions with the European Union to switch customers to American. We with employees from other airlines. on flights between North America and Competition Directorate in their review create a steady stream of new custom- Europe. of the proposed joint business. ers by re-accommodating those who What They’re Saying This tentative approval is being Watch for updates about the JBA on are unable to fly on their original ticket Employees weighed in about winning reviewed by American and its Jetnet. with the competitor. It all starts with a new customers in Brazil on a recent proactive offer to help. Jetnet blog. So how do we do it? Our strategy is pretty simple. We develop and main- “Very forward thinking on your part. tain good relationships with employees We should use this as an example for from the other airlines and oneworld procuring more business and at the partners. same time helping our competitors. Every day our team looks at whether Congratulations for all your efforts. other airlines are experiencing an OSO They are paying off. Thanks from a day, and if so, we proactively reach out DFW Customer Service Agent.” and offer to help. For example, we inform other airlines how many seats we have “Great job, AA Brazil team! It is open and make it easy for them to send encouraging to hear about AA employ- their customers to us. Most importantly, ees going above and beyond for our cus- we stay on top of it. As a result, AA is tomers AND bringing in extra revenue. top of mind when other airlines have to Keep up the good work!” re-accommodate their customers. “In my position as a Special Assistance “Yes, We Can” Coordinator, I try to be as friendly as I “Yes, We Can” is the catchphrase we’ve can on every call and make sure the adopted. If other airlines call us and ask passengers have the assistance they if we have space for 30 customers, we need at the airport. Cheers and viva jump through hoops and do whatever BrAAzil.”

(L to R) Chenet Rosier, Automotive Lead Agent; Didier Jean-Louis, Security Acting Lead Agent; Sander Delva, Passenger Service Agent; Tamara Lassegue, Passenger Service Lead Agent; Lucie Lucas, Passenger Service Agent; and Elsy Viala, Country Manager, receive supplies from one of the relief flights to Haiti. Delivering Hope to Haiti Employees Answer Haiti’s Cry Raising money fast was on the minds Chicago, LAX, and Burbank collected of many American and American Eagle shoes. Boston panhandled pizza. employees, and having a good old-fash- There were cookouts in Denver and ioned bake sale was the ticket in JFK, Atlanta, with a chili cook-off in Omaha. LAX, St. Louis, Vancouver, Nashville, Fritos chili pies sold like hot cakes in

Montreal, Jacksonville, and Louisville. Albuquerque, and San Francisco put Adriana Paula, Lead Agent – Passenger Service, São Paulo, Brazil, seamlessly accommodates Calgary, Canada, served up cupcakes. Continued on back cover customers from other airlines.

22 FLAGSHIP NEWS First Quarter 2010 Buckle Up for Wellness in 2010 Remember when buckling up before driving your car See details about Wellness Champions on Jetnet’s was a conscious decision? Now, reaching for your seat Healthmatters page. belt is as automatic as turning on the ignition. > Having a baby? Help yourself to resources with All habits, especially good health habits, begin by tak- Maternity Matters, and earn a $100 MasterCard ing that first step toward changing your daily routine. gift card. Habits that help you lose weight, add muscle tone, quit > Stay Well Rx Rewards help employees with diabetes smoking, lower cholesterol, and live a healthier lifestyle, and hypertension monitor their condition and earn all require your initial determination. And most of the a reduction in their prescription drug co-pay. time, developing good habits requires a little help. > Learn more about how the Medco Rx Therapeutic As an AA employee or retiree under the age of 65, Resource Center and pharmacists can help you. there are several ways you can get the help you need. Check www.mymedco.com for promotions. > Start by completing a Health Assessment on Jetnet’s > Watch for members-only discounts and spe- Healthmatters page. Get a baseline report on your cial offers. Aetna, Blue Cross Blue Shield, health, and receive suggestions for ways to improve UnitedHealthcare, and HMOs offer a wide range your health. And earn a $50 gift card to a wide choice of special health-related products and services to of merchants if you are a Pilot, Flight Attendant, or a their members. Click through to the administra- TWU-represented employee or retiree. tor’s Web sites via Jetnet. > Take advantage of ActiveHealth programs to get Good health provides benefits to you and everyone on the right path in achieving your health and fit- who depends on you. Check out the Healthmatters ness goals. resources on Jetnet. All the new programs and changes > Link up with a Wellness Champion in your office to the incentive programs are available online. Then Keycsha Bruce, Customer Relations Staff Assistant, HDQ, enjoys or station, or become a Champion yourself to buckle up, start your engine, and get on the road to a an early morning walk. It’s paid off — Bruce says she is losing assist co-workers seeking a healthier lifestyle. healthier life. weight and feeling great.

First Quarter 2010 FLAGSHIP NEWS 23 Haiti Continued from page 22 2 3

1 Almost 350 employees volunteered their time to take pledges during George Clooney’s Hope for Haiti Now telethon. More than 15,000 calls were received at the Southern Reservations Office (SRO). 2 Peter Dolara, Senior VP, Mexico/Caribbean/Latin America, assists evacuees in boarding on the return portion of the first AA relief flight. 3 (L-R) LeAnn Geer, Customer Service Agent; Bob Geach, Customer Service Agent; and Karen Adamson, Operational Coordinator showcase the generosity of Sacramento employees. 4 Mike Stefanos, Fleet Service Clerk, DFW, (left), opens his wallet to buy a Spirit raffle ticket from volunteer Fleet Service Clerk Roosevelt Kennedy. 5 Rumhte Crumbe, Aircraft Mechanic, Miami, traveled with relief workers on board American to Port-au-Prince where he was able to rescue his aunt, Marie Therese Dorsaimeil, and take her back to the United States. 6 Agustin Correa, Eagle Fleet Service Clerk, SJU (top) and Michael Negron, Eagle Fleet Service Clerk, SJU; load supplies on the first American Eagle relief flight to Haiti. More than 140,000 pounds of supplies were shipped by American and American Eagle in January. panini up for sale. San Diego sold some white elephants. Miami American and doled out donuts. LGA had a drawing for money and the winner Donation Efforts Highlights American Eagle donated it back to the cause. Baltimore employees decked out in Humanitarian red sold red and blue ribbons to support Haiti. San Juan collected >> AAdvantage Members — more than $1,400,000 water, first aid items, toiletries, and canned goods. The Sacramento Aid Highlights >> AA Federal Credit Union Members — almost $30,000 Recreation Club voted to donate the proceeds of their ongoing fund- AA employees through American Giving — more than $85,000 raising activities to Haiti Relief. The DFW Rec Club and the Spirit >> >> 30 relief missions Employee Resource Groups — more than $25,000 of DFW team did the same. And the Southern Reservations Office >> >> More than 400,000 was one of the official call-center sites supporting George Clooney’s >> AA and Eagle employees at JFK — more than $30,000 pounds of supplies SERO — $5,000 Hope for Haiti Telethon. >> >> More than 450 These are just a few of the many fundraising activities initiated by >> Hope for Haiti Now telethon people evacuated* American Airlines and American Eagle employees throughout the • 350 employees participated entire system. Galvanized by the devastating news in Haiti, employ- • 15,000 phone calls taken * Evacuees transported out ees all over the globe stepped up to lend a helping hand and open of Haiti are determined by their hearts and wallets to aid Haiti in its recovery. Donations as of February 2010 the U.S. State Department. “Our hearts go out to our friends, family, co-workers, and all of the people affected by this catastrophic earthquake,” says Peter Dolara, Senior Vice President – Mexico, the Caribbean, and Latin America. Helping Our Own in Haiti “It is extremely gratifying to see how our employees and customers have come together to help provide much-needed assistance to the One hundred and six American Airlines den, unexpected situations that threaten people of Haiti. We will continue to do whatever we can to help.” employees and their families have been their health and welfare. The Family Fund “This is very personal to me because I am from Haiti and know people affected by this tragic event,” says Ginette Brossard, Reservations affected by the earthquake in Haiti. You will assist our employees in Haiti; howev- Representative, DFW. “I am so thankful to everyone from AA volun- can help by donating to the American er, a disaster of this magnitude depletes teering to help. Thank you from the bottom of my heart.” Airlines/American Eagle Family Fund. The funding quickly and jeopardizes the “I think it is really cool to work for a company that has an oppor- Family Fund is a public, nonprofit, 100 ability to continue helping our employees tunity to make an impact. I know we flew some of the first relief percent volunteer, charitable organization who need these funds across our system. flights and was grateful we were able to do that,” adds Cheryl Harris, committed to providing short-term, crisis Please consider helping us help our own Manager – Leadership Planning & Performance, HDQ. “It makes me proud to work for American.” relief assistance to AA and Eagle employ- by going to Family Fund on Jetnet and See Jetnet for more news and stories about American and American ees and their families who are facing sud- click on “Ready to Donate.” Eagle’s aid to Haiti.

24 FLAGSHIP NEWS First Quarter 2010