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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
_____________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of earliest event
reported: March 31, 2003
American Airlines, Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-2691 13-1502798
(State of Incorporation) ( Commission File Number) (IRS Employer
Identification No.)
4333 Amon Carter Blvd. Fort Worth, Texas 76155
(Address of principal executive offices) (Zip Code)
(817) 963-1234
(Registrant's telephone number)
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Item 5. Other Events
American Airlines, Inc. (American or the Company, a wholly owned
subsidiary of AMR Corporation) is filing herewith a press release
issued on March 31, 2003 by American as Exhibit 99.1 which is
included herein. This press release was issued to announce
"ground breaking accords" with the leadership of the three major
unions representing American Airlines employees.
Item 7. Financial Statements and Exhibits
The following exhibits are included herein:
99.1 Press Release
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
American Airlines, Inc.
/s/ Charles D. MarLett
Charles D. MarLett
Corporate Secretary
Dated: April 1, 2003
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EXHIBIT INDEX
Exhibit Description
99.1 Press Release
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Exhibit 99.1
Contact: Corporate Communications
Fort Worth, Texas
817-967-1577
corp.comm@aa.com
FOR RELEASE: Monday, March 31, 2003
AMR CHIEF DON CARTY PRAISES CONSENSUAL AGREEMENTS WITH
EMPLOYEES TO CUT COSTS
FORT WORTH, Texas - AMR Chairman Don Carty today heralded
"ground breaking accords" with the leadership of the three major
unions representing American Airlines employees as he announced
changes in pay plans for management and non-union employees to
achieve $1.8 billion in employee cost savings.
"Today's unprecedented action by the unions, our employees
and the company represent another first at American and in our
industry," Carty said.
"By taking these decisive actions, the union leadership and
our employees have demonstrated an unwavering commitment to the
future of the company, and have enabled us to avoid an immediate
filing with the bankruptcy court. The speed with which these
comprehensive and complex agreements was reached is a testament
to our people."
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American Gets Consensual Deals with Unions
March 31, 2003
Page 2
The accords with the three unions are far reaching and touch
on nearly every aspect of pay, benefits and work rules.
As part of this effort, the company will also announce
changes to pay, benefits and work rules for all non-union
employees, including agents, representatives, planners, support
staff and management.
Labor leaders worked with the company to determine how best
to meet their targets, while over 10,000 non-union employees
actively participated through surveys, focus groups and
InterAction sessions to help determine theirs.
The cost savings will be divided by work group as follows:
- Pilots: $660 million
- Flight attendants: $340 million
- TWU Represented employees: $620 million
- Agents, representatives and planners: $80 million
- Management and support staff: $100 million
In addition, the company announced that Carty will take a 33
percent base pay cut; decline a bonus for the third consecutive
year; and will ask the AMR Board of Directors to make further
changes that significantly reduce the value of his and his senior
officers' compensation packages.
In announcing the agreements, Carty also reported that
American employees will have access to a new stock option and
profit sharing program.
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American Gets Consensual Deals with Unions
March 31, 2003
Page 3
Carty cautioned, however, that while these agreements are a
"critical step in our resolute march toward survival," he said
that the agreements must still be ratified by the unions'
memberships and the company must, among other factors, secure
"meaningful concessions" from its vendors, lessors and suppliers.
The company, in communications to its employees, stressed that
"the financial condition of American is weak and its prospects
remain uncertain. Particularly given the impact of the continuing
war in Iraq and the different general economic conditions that
are negatively impacting the industry, the days ahead will be
difficult and the success of our joint efforts is not yet
assured."
"I would not ask for these sacrifices if I weren't
convinced that they were absolutely necessary to achieve our
restructuring goals," Carty said. He committed to building upon
the "culture of cooperation and collaboration that produced
today's agreements and that is essential to our future. My
commitment to fostering this new culture will not change," he
said. "Our employees are key to our success."
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American Gets Consensual Deals with Unions
March 31, 2003
Page 4
Statements in this report contain various forward-looking
statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, which represent the Company's
expectations or beliefs concerning future events. When used in
this document and in documents incorporated herein by reference,
the words "expects," "plans," "anticipates," "believes," and
similar expressions are intended to identify forward-looking
statements. Other forward-looking statements include statements
which do not relate solely to historical facts, such as, without
limitation, statements which discuss the possible future effects
of current known trends or uncertainties, or which indicate that
the future effects of known trends or uncertainties cannot be
predicted, guaranteed or assured. All forward-looking statements
in this report are based upon information available to the
Company on the date of this report. The Company undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events
or otherwise. Forward-looking statements are subject to a number
of factors that could cause actual results to differ materially
from our expectations. Additional information concerning these
and other factors is contained in the Company's Securities and
Exchange Commission filings, including but not limited to the
Form 10-K for the year ended Dec. 31, 2001[2002].
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Current AMR Corp. press releases can be found on the Internet.
The address is http://www.amrcorp.com