AGREEMENT
between
AMERICAN AIRLINES, INC.
and
THE AIR LINE PILOTS
in the service of
AMERICAN AIRLINES, INC.
as represented by the
ALLIED PILOTS ASSOCIATION
Effective: May 1, 2003
SECTION 1
RECOGNITION AND SCOPE
B. Definitions
4. Commuter Air Carrier
The term "Commuter Air Carrier" refers to any Air Carrier utilizing only (a)
aircraft that are certificated in the United States and Europe with a maximum
passenger capacity of 50 passenger seats or fewer and (b) aircraft that are not
certificated in any country with a maximum gross takeoff weight of more than
64,500 pounds. If an aircraft type operated by an Air Carrier otherwise meeting
the conditions in the preceding sentence is recertified with a maximum
passenger capacity of greater than 50 passenger seats, the Air Carrier
operating said aircraft shall remain a Commuter Air Carrier so long as it
operates said aircraft with no more than 50 passenger seats.
C. SCOPE
1. General.
All flying performed by or on behalf of the Company or an Affiliate shall be
performed by pilots on the American Airlines Pilots Seniority List in accordance
with the terms and conditions of this Agreement, except as expressly permitted
in provisions D. – K. below.
D. Scope Exception: Commuter Air Carriers
1. Commuter Air Carriers and Section 1 Limitations.
The Company or an Affiliate may create, acquire, maintain an equity position
in, enter into franchise type agreements with, and/or codeshare with a
Commuter Air Carrier, and flying by any such Commuter Air Carrier shall not
be subject to the limitations of Section 1.C. above, so long as any such
Commuter Air Carrier operates in accordance with the limitations set forth in
this Section 1.D.
2. American Eagle, Inc. and Executive Airlines, Inc.
American Eagle, Inc. and Executive Airlines, Inc. may operate, in the
aggregate, no more than 43 ATR 72 aircraft or other turbo prop aircraft
certificated in the United States and Europe for a maximum passenger capacity
of between 51 and 70 seats, without losing their status as Commuter Air
Carriers.
3. Purpose; Intent of the Parties.
a. Primary Purpose.
The primary purpose of a Commuter Air Carrier is either to provide
passenger and/or cargo revenue feed to Company flights and/or to enhance
the Company’s overall market presence.
b. Role of Commuter Air Carriers in Company’s Development.
The parties recognize that Commuter Air Carriers have played a role in the
development of the Company as the world’s premier airline. Additionally,
the Company and the Association acknowledge that the passenger feed
provided to the Company’s domestic and international system strengthens
the Company, thereby providing enhanced career opportunities to American
Airlines pilots.
c. Markets in Which the Company Cannot Earn an Adequate Return on
Invested Capital
The Company will operate American Airlines service in markets where such
service can earn an adequate return on invested capital. This provision will
not require the Company to operate a particular service, but instead, if the
Company could operate a service and earn an adequate return on invested
capital, the Company may not place or maintain the Company code on such
service by a Commuter Air Carrier. Notwithstanding this prohibition, if the
Company orders additional aircraft to fly such a route, the Company may
place or maintain its code on the route or frequency during the time
between order and delivery of the additional aircraft. Similarly, if the
Company is procuring an airport slot, gate and/or other route authority to fly
such a route, the Company may place or maintain its code on the route or
frequency during the time required to procure such a slot and/or authority.
d. Parties to Meet in the Event of Problems.
It is not the intent of either the Company or the Association to limit the
expansion of Commuter Air Carriers in developing new markets. If at any
time it is determined that these provisions are impeding the ability of
Commuter Air Carriers to fulfill their primary role in support of the
Company’s system, the parties agree to promptly meet and discuss
appropriate modifications to this Agreement.
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LETTER JJ (6)
AmericanAirlines®
September 22, 2003
Captain John E. Darrah
President
Allied Pilots Association
14600 Trinity Boulevard, Suite 500
Fort Worth, TX 76155
Re: Trans States Airlines – ATR Exception (Section 1.D.2)
Dear John:
This letter modifies the agreement between the Allied Pilots Association (“APA”) and American Airlines, Inc. (“Company”) dated May 1, 2003 regarding Section 1 - Scope. Specifically, the parties agree to make an exception in which Trans States Airlines (“TSA”) may operate, in aggregate, no more than three (3) ATR 72 aircraft or other turbo prop aircraft certificated in the United States and Europe for a maximum passenger capacity of between 51 and 70 seats, in the American Connection Operation in STL without losing its status as a Commuter Air Carrier.
The parties also agree that TSA may replace and/or substitute these aircraft with like or similar aircraft.
Sincerely,
/signed/
Mark L. Burdette
Director - Employee Relations
Agreed:
/signed/
John E. Darrah
President
Allied Pilots Association
