American and Allied Pilots Settle Outstanding Judgment

Apr 27, 2001, 01:00 ET from American Airlines

    FORT WORTH, Texas, April 27 /PRNewswire/ -- American Airlines today said
 it had reached an agreement with the Allied Pilots Association (APA) on a
 settlement to resolve the outstanding $45.5 million contempt damage award
 levied against the APA.
     American and the APA also agreed that, as part of the payment, the
 $20 million previously deposited by APA into escrow, plus interest, is to be
 transferred to American.  The airline said that the transfer has already been
 made by the escrow agent.
     The agreement reached today states that the remaining balance of
 approximately $25.5 million will be repaid, with interest, to American on a
 15-year payment schedule.
     According to the agreement, claims against the former APA President and
 former Vice President and 23 other union officials have been dismissed by
 American.
     American said it believed the settlement represented a responsible way of
 resolving a difficult issue from the past, and in a manner that serves the
 interests of customers, employees and shareholders.
 
       MORE ROOM FOR MORE COACH PASSENGERS ... ONLY ON AMERICAN AIRLINES
 
     Current AMR Corp. (NYSE:   AMR) news releases can be accessed via the
 Internet.  The address is http://www.amrcorp.com/corpcomm.htm.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X57734804
 
 

SOURCE American Airlines
    FORT WORTH, Texas, April 27 /PRNewswire/ -- American Airlines today said
 it had reached an agreement with the Allied Pilots Association (APA) on a
 settlement to resolve the outstanding $45.5 million contempt damage award
 levied against the APA.
     American and the APA also agreed that, as part of the payment, the
 $20 million previously deposited by APA into escrow, plus interest, is to be
 transferred to American.  The airline said that the transfer has already been
 made by the escrow agent.
     The agreement reached today states that the remaining balance of
 approximately $25.5 million will be repaid, with interest, to American on a
 15-year payment schedule.
     According to the agreement, claims against the former APA President and
 former Vice President and 23 other union officials have been dismissed by
 American.
     American said it believed the settlement represented a responsible way of
 resolving a difficult issue from the past, and in a manner that serves the
 interests of customers, employees and shareholders.
 
       MORE ROOM FOR MORE COACH PASSENGERS ... ONLY ON AMERICAN AIRLINES
 
     Current AMR Corp. (NYSE:   AMR) news releases can be accessed via the
 Internet.  The address is http://www.amrcorp.com/corpcomm.htm.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X57734804
 
 SOURCE  American Airlines