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April 3, 2003

American's flight attendants would take 15.6% pay cut

American Airlines' flight attendants would see their pay cut by 15.6 percent effective May 1 under their proposed wage concession with the airline.

The Association of Professional Flight Attendants, which represents American's 26,000 flight attendants, released a summary of the concessions on the public area of its Web site. The concessions also include no pay increase effective Jan. 1, 2004, and a 1.5 percent salary increase on May 1 of the years 2004 through 2008.

In addition, flight attendants would no longer receive furlough pay, holiday pay, longevity pay, or night pay, and would see their vacation reduced by 33 percent. Concessions also include eliminating benefits for overage leaves, crew meals and part-time flying.

Although the summary available to the public does not mention any layoffs, various media reports have said up to 2,000 flight attendants would be laid off under the plan.

The flight attendants' retirement benefit plan would remain unchanged, the union said.

The proposed agreement also includes profit sharing of up to 15 percent of eligible pay, if a threshold is met. The union would receive 17.9 percent of 37.88 million outstanding AMR shares, as well.

Union members must vote on the proposed agreement before it takes effect.

American Airlines asked its three unions to make $1.8 billion in permanent cost cuts in order to stave off bankruptcy.