Letter of Agreement: Procedures for Transfers

The Company and the TWU have agreed to implement the following procedures in order to clarify the transfer process. Due to the criticality of verifying employee’s background history, many employees have transferred to stations only to be informed by outside agencies that they have not been approved with credentials to work at their new station. This new procedure will ensure that an employee is aware of their status of clearance prior to the employee relocating to the new station.

1. The procedures only apply to voluntary transfers under Article 12.

2. The procedures apply to those employees covered under the agreement between American Airlines and the Transport Workers Union covering Mechanic and Related and Stores employees.

3. The procedures will be handled between the stations (as they are today) i.e., report dates, report locations, etc.

4. On the date the employee is notified of the transfer award and accepts it via the online transfer system, the employee will be scheduled, on a regular scheduled day of work as approved by local management (coordinating with the employee and the receiving station management), to report to his new station for the purpose of completing all necessary requirements to work at that station. This includes, but is not limited to, fingerprinting for SIDA access and criminal history background checks for U.S. Customs and approved U.S. Customs seals. The employee may also be required to complete any AA administrative information during this visit.

5. Employees will be provided a round trip A12 Company business pass for the purpose of completing the administrative requirements as outlined above. In addition, the employee will be paid for such day. All other expenses associated with the travel to and from the new location will be borne by the employee in accordance with Article 12.

6. Upon completion of #4 as noted above, the employee will return to his/her station and await approval of all background checks, etc. The receiving station management will keep the employee apprised of the status of the approval. Also the receiving station may request that the employee report prior to the approval to begin any required training. In this case the employee will separate from his original station and report to the transfer station on the designated report date.

7. Once approved, the employee will be given a report date by his/her supervisor.

8. If not approved, the employee will remain in his/her station. Under the AA/TWU agreement, this will not be treated as a refusal of transfer by the employee or a rescission of transfer by the Company.

9. If the employee fails to complete the required process necessary to obtain the SIDA access and criminal history background checks for U.S. Customs and approved U.S. Customs seals in a timely manner, as outlined above and the employee does not complete the transfer, he will be considered to have refused the transfer and the provisions of Article 12 regarding transfer refusal will apply.

10. The terms and conditions as outlined above will become effective the date of this signed letter of understanding. For those employees, who have transferred within the last two months and were not paid for a regular scheduled day of work in order to travel to the new station, they will be paid for such day.

Agreed by: Jim Wheel, Director Employee Relations, Robert F. Gless, AA Systems Coordinator Deputy Director

October 25, 2010