Dear American Airlines Colleague:
We are quickly approaching the completion of our successful restructuring and the merger with US Airways, which will position the new American for great success. As we look toward that future, I want to thank you for your dedication and your focus on our customers.
In recognition of the changes made during restructuring, the majority of American’s U.S.-based employees will receive an ownership stake in the new American, in the form of shares of new American stock. (These equity stakes are contingent on consummation of the Plan of Reorganization in the Chapter 11 case and the closing of the merger.) By now, either your union or the company has shared detailed information on who is eligible to receive this equity and how the allocation amounts will be determined. Please refer to those communications to understand whether or not you meet the eligibility requirements.
The value of the shares you receive will be wages subject to withholding of federal and state taxes, including FICA, and a portion of your distribution will be set aside to fund your obligation for such withheld taxes.
We don’t want you to pay any more in withheld taxes than is necessary. Accordingly, you must fill out an online version of Form W-9 “Request for Taxpayer Identification Number and Certification” with our stock administrator, Computershare, which is processing your distribution. If you do not complete the online version of Form W-9 with Computershare, it will be required to withhold at an additional 28 percent tax rate from any proceeds received in respect of the sale of shares in your Computershare account.
To open your Computershare account and protect yourself against this, please complete your W-9 form online between August 9 and the deadline of August 23. To do so, you may access your Computershare account by logging into J.P. Morgan: http://www.retireonline.com. More detailed instructions are included in the Q&A.
We’ve put a great deal of useful information about the equity distribution on new Jetnet. The new section, Equity Hub, includes guides, Q&As, resources and links to helpful websites. I hope you’ll take advantage of this resource, which will be regularly updated. Look for it on the Time and Money page of new Jetnet’s People space. You can expect additional information soon about the timing of your equity distribution and how the process will work.
We are building toward a new airline that will be the best in the skies, for our customers and for our people, and I’m pleased that so many of you will have this opportunity to share in the new American’s success.
Sincerely,
Note: A copy of this letter has also been mailed to homes of eligible individuals.