AMR Corporation - American's Parent Company

At the company’s annual meeting in May 1982, stockholders approved a plan of reorganization under which a new holding company, AMR Corporation, was formed and became the parent company of American Airlines. The reorganization took effect on Oct. 1, 1982. The formation of AMR had no effect on day-to-day operations of American, but it did – and still does – provide the company with access to sources of financing that otherwise might not be available. The holding company structure also allows the company to take advantage of appropriate new opportunities. The name “AMR” was taken from the airline’s three-letter New York Stock Exchange trading symbol. It simply stands for “American.”

Today, AMR is the parent company of both American Airlines, Inc. and American Eagle Airlines, Inc., and has a number of businesses and key facilities within its corporate structure. All of them are overseen from AMR’s Corporate Headquarters campus in Fort Worth, Texas. AMR’s businesses and key facilities include:

Corporate Headquarters Campus
Located in two modern office buildings along Amon Carter Boulevard in Fort Worth’s CentrePort commercial park, AMR’s headquarters occupies a total of about 1.4 million square feet and is home to more than 4,300 employees. The Headquarters was relocated to Fort Worth from New York City in July and August of 1979. Just a few minutes south of DFW International Airport, site of American’s largest connecting hub, the Headquarters is at the heart of the airline’s global route network, an important advantage in managing what is truly a worldwide enterprise.

American Airlines
American Airlines is the world’s largest airline, contributing more than $150 billion per year to the U.S. economy. American and its regional airline affiliates, American Eagle and the AmericanConnection airlines, serve 250 cities in over 40 countries with more than 4,000 daily flights. Among domestic U.S. airlines, American’s 2006 market share was 17.8%. American’s network covers points throughout North America, the Caribbean, Latin America, Europe and the Pacific. American has major connecting hubs at Dallas/Fort Worth, Chicago O’Hare, Miami, St. Louis and San Juan, Puerto Rico. About 90% of American’s flights begin or end at these hubs. American’s “Transcon” services between cities on the U.S. East and West Coasts have long been important non-hub flights. American also has a large presence in other large U.S. metropolitan areas – New York (five airports), Los Angeles (four airports) and Boston. In 2006, 35% of American’s flying was international – Latin American and the Caribbean, 15.8%; Europe, 14.3%; and Pacific, 4.6%. The combined network fleet numbers more than 1,000 aircraft. In 2006, American carried more than 98 million passengers. The airline has nearly 82,000 employees worldwide. About 65% of AA’s employees are represented by one of three labor unions – Allied Pilots Association, Association of Professional Flight Attendants, Transport Workers Union.

On an average day, American Airlines alone will:

• Fly about 270,000 passengers
• Receive more than 220,000 reservations calls.
• Handle more than 344,000 pieces of luggage.
• Fly more than 3,300 flights.

American’s award-winning Web site, AA.com, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, oneworld’s members serve nearly 700 destinations in over 140 countries and territories.

AmericanAirlines, American Eagle, the AmericanConnection airlines, AA.com and AAdvantage are registered trademarks of American Airlines, Inc.

American Airlines Cargo
American Airlines Cargo, a division of American Airlines, Inc., provides over 100 million pounts of weekly cargo lift capacity to major cities in the United States, Europe, Canada, Mexico, the Caribbean, Latin America and Asia. American, American Eagle and the AmericanConnection regional carriers serve more than 250 cities in over 40 countries with more than 4,000 daily flights. There are more than 1,000 aircraft in the combined network fleet. American provides one of the largest cargo networks in the world, with cargo terminals and interline connections available across the globe.

American Eagle
In 1984, American Airlines established American Eagle as its regional airline affiliate. The American Eagle network is now the largest regional airline system in the world, connecting passengers to and from American flights at its hubs and other key cities. It operates 305 aircraft with more than 1,700 flights a day and serves 140 cities throughout the Unites States, Canada, The Bahamas and the Caribbean. Its eight hubs are Boston, Chicago O’Hare, Dallas/Fort Worth, Miami, Los Angeles, New York JFK, New York LaGuardia and San Juan, Puerto Rico. Together, American, American Eagle and the AmericanConnection airlines serve 250 cities in over 40 countries with more than 4,000 daily flights. The combined network fleet numbers more than 1,000 aircraft. In 2006, American Eagle alone carried more than 21 million passengers. American Eagle has nearly 12,800 employees.

American Beacon Advisors
American Beacon Advisors, a wholly-owned subsidiary of AMR Corporation, is an experienced provider of investment advisory services to institutional and retail markets. American Beacon Advisors serves defined benefit plans, defined contribution plans, foundations, endowments, corporations and other institutional investors. American Beacon Advisors also manages the American Beacon Funds, a series of low-cost, no-load mutual funds open to institutional investors, retirement accounts such as IRAs, and individual investors. The fund family currently includes multiple portfolios spanning a variety of longer-range investments, from international and domestic equity through balanced portfolios and short-term investment options, including bond and money market funds. As of May 2007, American Beacon Advisors had approximately $68.9 billion in assets under management. American Beacon Advisors was founded in 1986 as a subsidiary of AMR.

Key American Airlines Facilities

American Airlines Training and Conference Center
The American Airlines Training and Conference Center is located in the Dallas/ Fort Worth area, just minutes south of Dallas/Fort Worth International Airport. When the Center first opened in 1957 as the American Airlines Stewardess College, it was one of the first facilities in the airline industry for the centralized training of airline cabin attendants. Through the years, the Center’s role as evolved dramatically. Still American’s base for training flight attendants, the Training and Conference Center is now also designed to encourage learning and professional growth without distraction for companies and organizations of all kinds. The Center is available for conferences, team-building programs and catered events. The facility includes:

• 75,000 square feet
• 75 training and conference rooms
• A 300-seat theater
• 8 suites and 291 guest rooms:
• 30 with twin beds
• 63 with double beds
• 149 with queen beds
• 49 with king bed
• 5 executive board rooms
• 7 aircraft cabin simulators for state-of-the art flight attendant training

American Airlines Flight Academy
Opened in 1971 just south of Dallas/Fort Worth International Airport, the American Airlines Flight Academy is an institution dedicated to safety in air travel and is the center for all pilot training activities at American and American Eagle. Recognized by the aerospace industry as one of the finest flight training facilities in the world, the Flight Academy operates 365 days a year and on any give month, has more than 1,000 AA pilots visit for training. The Flight Academy houses a total of 27 highly advanced cockpit simulators for training on each aircraft type flown by American and American Eagle, all the way up to Boeing 777. Each year, American’s and American Eagle’s pilots “fly” millions of very challenging training miles. Without ever leaving the ground, pilots are tested and challenged with literally thousands of emergency scenarios and malfunctions to ensure safety and prepare them for any eventuality. American also leases certain Flight Academy pilot-training facilities to other airlines. The Flight Academy’s 27 full-flight simulators include:

American Airlines Simulators

• 4 - B737
• 6 - MD80
• 3 - B757
• 3 - B767
• 3 - B777
• 1 - A300
• 2 - F100 (for contract training)
• 1 - B727 (for contract training)

American Eagle Simulators

• 1 - Saab 340B
• 1 - ATR-42
• 2 - ERJ-145

Types of Training Done by American and American Eagle:

Qualification Curricula

• Initial – New to aircraft and duty position (new hire for MD80 First Officer)
• Transition – New to aircraft (from MD80 First Officer to B767 First Officer)
• Upgrade – New to duty position (from First Officer to Captain)

Continuing Qualification Curricula

• Recurrent – American pilots do this every nine months
• Requalification – Retraining for pilots who have not flown a particular aircraft for some time

The System Operations Control Center
Located in a three-story building near DFW Airport, the System Operations Control Center is the nerve center of the worldwide American Airlines route network, coordinating the day-to-day, minute-by-minute operation of the airline. Years ago, many of SOC’s activities were performed at key regional locations like New York, Chicago and Los Angeles. Now, all of these critical operational oversight functions are consolidated in one major, cutting-edge operating center – SOC. Today, SOC must manage a global, complex, and fast-moving network of people, aircraft, equipment and facilities, with safety and customer service top priorities.

Overall, SOC fulfills two major needs for American: 1) The need to coordinate and monitor daily and minute-by-minute operating decisions on a centralized, system-wide basis for what is now a global network, and 2) The need to meet Federal Aviation Regulations for operational control of the route system and the decisions that affect those operations. In doing this, SOC:

Manages System Operating Integrity

• Safety (in flight and on the ground)
• Customer Service (dependability)
• Communications (flow of operational information)

Manages System Balance

• Aircraft (availability, substitutions, spare airplanes)
• People (flight crews, ground employees, passengers)
• Airports (Air Traffic Control, construction, closures)
• Facilities (gates, terminals, ground transportation)
• Airspace (weather, route congestion)

SOC is managed by a total of four "Center Managers" and nine "Sector Managers" who, working in shifts around the clock:

• Act as full-time representatives of top management for monitoring and effectively controlling the use of Company resources.
• Consider the entire operation, anticipate events, and resolve competing interests.
• Manage any abnormal or emergency situation that affects any part of the airline, its passengers, it employees or its facilities.

Key functional areas of SOC include:

• Flight Dispatch – 180 FAA certified flight dispatchers are assigned to more than 30 Dispatch Desks, working 27 geographical areas. They are co-responsible with AA’s Captains for the safety of flight operations.
• Weight and Balance – A total of 82 highly trained Weight and Balance people establish a working Load Plan to field locations for all AA departures systemwide.
• Navigation Database – A team of 14 highly trained people ensures the accuracy of the flight plan route database, covering more than 10,000 routes worldwide.
• Corporate Complaint Resolution – A team of eight senior analysts works to ensure maximum accessibility for travelers with disabilities or medical conditions.
• Air Traffic Systems – Two managers interface with 22 Regional Air Route Traffic Control Centers to help manage air traffic issues.
• Operations Coordinators – This team of experts helps manage unplanned operational events such as those presented by hurricanes, winter snow and ice storms and summer severe weather conditions. A Command Center in the heart of SOC becomes the system-wide focal point for managing emergencies and serious service disruptions.

American Airlines C.R. Smith Museum
Named in honor of aviation pioneer and former American Airlines Chairman C.R. Smith, the C.R. Smith Museum opened on July 3, 1993, in a modern new facility next to the American Airlines Flight Academy, just south of DFW Airport. The Museum preserves and interprets the history of American Airlines, American Eagle and the air transportation industry. Through its activities, the Museum serves active and retired employees, the educational community and interested members of the general public. Because of its commitment to education, the Museum’s exhibits stress interactive learning through hands-on displays. The Museum collects artifacts and archival materials that are suitable to its educational and exhibit programs. A main feature is the Flagship Knoxville, a fully restored 1930s-era American Airlines DC-3 housed in a modern, glass-enclosed “hangar.” The C.R. Smith Museum is also a unique and engaging environment in which the public can hold corporate and private functions. The Museum hosts more than 50,000 visitors per year.

Alliance ( Fort Worth) Maintenance Base
American’s Maintenance Base at Alliance Airport in Fort Worth, Texas, about 22 miles northwest of DFW Airport, opened in January 1992. It is the fleet maintenance base for AA’s B767-300 and B777 aircraft and for the Rolls Royce engines American flies. The base’s work includes heavy overhaul maintenance on the B767-300 and B777 fleets, as well as modification work on those fleets and maintenance work for other airlines. The Alliance Base is also home to TAESL (Texas Aero Engine Services, Ltd.), a joint venture with Rolls Royce for the repair and overhaul of certain Rolls Royce engines. American has nearly 2,000 employees at Alliance, about 1,700 of whom are licensed aircraft and jet engine mechanics. The Base occupies about 200 acres at Alliance Airport. Its main hangar facility, large enough to accommodate seven wide-body jets, covers 781,000 square feet.

Tulsa ( Oklahoma) Maintenance Base
Opened in June 1946, American’s Maintenance & Engineering Center at Tulsa ( Okla.) International Airport is one of the largest and most sophisticated aviation maintenance facilities in the world. It is the headquarters for all Maintenance and Engineering activities at American Airlines worldwide, and is the maintenance base for the airline’s fleet of MD-80, B757, A300 and B737 aircraft – a combined total of nearly 580 airplanes. The Tulsa Base also performs all overhaul work on American’s Pratt and Whitney JT-8 and General Electric CF6-80 jet engines. Cutting-edge Base features include jet aircraft wheel and brake overhaul facilities and a composite repair center. With nearly 6,800 employees, more than 5,800 of whom are licensed aircraft and jet engine mechanics, American’s Tulsa Base is one of the largest private employers in Oklahoma. The Base occupies about 260 acres and 3.3 million square feet of maintenance “plant” at the Tulsa Airport. Each year, the base performs major overhaul work on about 80% of American’s fleet.

Kansas City ( Missouri) Maintenance Base
Originally part of TWA, American acquired its Maintenance Base at Kansas City ( Mo.) International Airport in 2001 as part of a package for the acquisition of certain TWA assets. The Kansas City Base is now home for all major maintenance work on American’s fleet of B76-200s and certain B757 aircraft. The Base also does overhaul work on all of AA’s CFM-56 engines, and performs modifications on various American Airlines aircraft, and aircraft of other carriers. American has nearly 800 employees at the Kansas City Base. About 720 of them are licensed aircraft and jet engine mechanics. The Base plays an important role in Kansas City’s economy.