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. The company is also a founding member of the global oneworld Alliance. All aspects of the airline's worldwide activities 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

Founded in 1930, American Airlines, formerly American Airways, Inc., was the result of the consolidation of more than 80 small airlines into The Aviation Corporation. American Airways, Inc. officially became American Airlines, Inc. in 1934, the same year C.R. Smith became president of the company. The airline began trading on the New York Stock Exchange on June 10, 1939. Originally headquartered in New York City, where it continues to maintain a strong presence, American moved its headquarters to Fort Worth, Texas, in 1979 and has since become one of the largest airlines in the world, contributing nearly $100 billion to the U.S. and international economies. It has helped create more than 900,000 jobs worldwide, and supported approximately 1,400 non-profit organizations worldwide. American and its regional airline affiliates, American Eagle and the AmericanConnection airlines, serve approximately 250 cities in over 40 countries with, on average, 3,400 daily flights. American's network covers points throughout North America, the Caribbean, Latin America, Europe and the Pacific. American has five major cornerstone markets: New York, Los Angeles, Dallas/Fort Worth, Chicago O'Hare, and Miami where it's network resources are concentrated and which connect some of the largest U.S. population centers for business travelers and are international gateway cities. American's "Transcon" services between cities on the U.S. East and West Coasts have long been important non-hub flights. In 2009, about 38.8% of American's flying was international – Latin American and the Caribbean, 18.7%; Europe, 15.6%; and Pacific, 4.5%. The combined network fleet numbers almost 900 aircraft. In 2009, American carried approximately 85.7 million passengers, about equal to one-third of the U.S. population. American and American Eagle have nearly 88,500 full-time and part-time employees worldwide. Approximately 67% 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 275,000 passengers
• Receive more than 239,000 reservations calls.
• Handle more than 300,000 pieces of luggage.
• Fly about 3,400 flights.

Cornerstone Strategy

On Sept. 17, 2009, AMR announced plans to strengthen its network by reallocating capacity to hubs in Dallas/Fort Worth, Chicago, Miami and New York and enhance its fleet to better serve customers. These four cities, along with Los Angeles, serve as the cornerstones of the company's network. The cornerstone strategy not only enhances AMR's domestic network but improves the company's ability to connect passengers globally, through our own flights and those of oneworld alliance partners.

oneworld's Network Strength

American Airlines is a founding member of the global oneworld® Alliance, bringing together 11 of the world's biggest and best airlines and 20 affiliate carriers, 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 150 countries and territories.

Between them, oneworld's member airlines:

• Serve 800 airports in nearly 150 countries, with some 8,750 daily departures.
• Offer nearly 550 airport lounges for premium customers.
• Carry more than 340 million passengers a year.
• Employ more than 300,000 people.
• Operate almost 2,500 aircraft.
• Generate some US$100 billion annual revenues in total.

Trans-Atlantic Joint Business Agreement

On July 20, 2010, American Airlines, British Airways, and Iberia received final approval from the U.S. Department of Transportation (DOT) to create a joint business governing flights between North America and Europe and will expand their global cooperation as a result of receiving antitrust immunity. Customers can travel more easily on the three airlines' combined route network that will serve 433 destinations in 105 countries with 5,178 daily departures, providing more frequent and convenient schedule options for customers than any of the three carriers could offer individually. By working together, the airlines will expand customer choices as well as offer numerous benefits, including expanded opportunities to earn and redeem frequent flyer miles and elite tier benefits and continued reciprocal airport lounge access.

Trans-Pacific Joint Business Agreement

In February, 2010, American Airlines and Japan Airlines (JAL) filed an application with the U.S. Department of Transportation (DOT) for antitrust immunity to forge a closer relationship and implement a joint business agreement governing the operation of their flights between North America and Asia. On October 6, 2010, the DOT issued a Show Cause Order granting American Airlines and Japan Airlines tentative antitrust immunity approval and permission to operate a joint business across the trans-Pacific. American and JAL will coordinate fares, services and schedules and by more closely integrating their networks, the airlines will continue to offer customers reciprocal frequent flyer benefits, and eligible customers will continue to have access to the airport lounges of both airlines. Through the joint business, the two airlines will offer a fully-integrated network between trans-Pacific gateway airports, ensuring all customers a robust global airline alliance from which to choose, and more options for time-sensitive business travelers. Antitrust immunity between American and JAL is made possible by the Open Skies accord reached by the United States and Japan in December 2009.

AA.com

American's award-winning website, AA.com, allows customers to conveniently search for and book air fares and award travel; select seats; make hotel, rental car, and cruise reservations; get flight arrival and departure information; sign up for flight status notification, and even check-in and print boarding passes. Customers can also manage their AAdvantage accounts at AA.com, as well as sign up to receive email offers from American and get customized DealFinder SM alerts. What's more, customers who purchase tickets at AA.com never pay an online booking fee and get a lowest price guarantee on fares and all ancillary products offered on the site.

American Airlines Cargo

American Airlines Cargo, a division of American Airlines, Inc., provides over 100 million pounds of weekly cargo capacity to major cities in the United States, Europe, Canada, Mexico, the Caribbean, Latin America and Asia. AA Cargo provides one of the largest cargo networks in the world, with cargo terminals and interline connections available across the globe. Utilizing the cargo capacity of the passenger fleet, American Airlines Cargo facilitates the shipping of many product types including fresh flowers, fruit, vegetables, seafood and life-saving pharmaceuticals. The cargo business has an international focus, comprising approximately 12% of international revenue, and 4% of total AA revenue.

American Eagle

In 1984, American Airlines established American Eagle as its regional airline affiliate. The American Eagle network is now one of the largest regional airline system in the world, connecting passengers to and from American flights at its hubs and other key cities. It operates more than 260 aircraft with more than 1,500 flights a day and serves more than 160 cities throughout the Unites States, Canada, The Bahamas, Mexico and the Caribbean. In 2009, American Eagle alone carried about 19 million passengers, connecting about 9 million passengers to and from American flights. American Eagle has more than 12,000 employees.

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 has 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
• 299 guest rooms including 7 suites
• 5 executive board rooms
• 7 aircraft cabin simulators for 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 given month, has more than 900 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

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

American Eagle Simulators

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

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 Integrated Operations Control Center

Located in a three-story building near DFW Airport, the Integrated 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 IOC'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 – IOC. Today, IOC must manage a global, complex, and fast-moving network of people, aircraft, equipment and facilities, with safety and customer service top priorities.

Overall, IOC 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

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)

IOC 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 IOC include:

• Flight Dispatch – 165 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 70 highly trained Weight and Balance planners establish a working Load Plan to field locations for all AA departures systemwide
• Flight Planning Support – A team of 13 highly trained people ensures the accuracy of the flight plan route database, covering more than 15,000 routes worldwide.
• Corporate Complaint Resolution – A team of nine 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.
• Command Center – In the heart of IOC, the Command Center 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." With more than 35,000 square feet of total exhibit space, the Museum unveiled a fresh new look in 2008. The makeover includes an upgrade of the Museum's 114-seat theater, a new historical walkway from the theater to the main exhibits, a renovated and updated History Circle, a redesigned Inner Circle with a theater space for a new "American Journey" video, a more efficient lighting system, and a large external mural visible to both motorists and in the air to some passengers landing at DFW Airport. 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 aircraft and for the Rolls Royce engines American flies. The base's work includes heavy overhaul maintenance on the B767 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 2,154 employees at Alliance, about 1,559 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 six 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, B777 and B737 aircraft. The Tulsa Base also performs all overhaul work on American's Pratt and Whitney JT-8, and General Electric CF6-80 and CFM56 jet engines. Cutting-edge Base features include jet aircraft wheel and brake overhaul facilities and a composite repair center. With nearly 6,400 employees, more than 4,700 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 more than 85% of American's fleet. It also does aircraft maintenance for other carriers on a contract basis.

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

Revised: January 2013