American Airlines 1997 Annual Report Download - page 10

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1
8
First Quarter
On January 8, the 9,000-member Allied Pilots Association (APA) announces that its members have rejected a tentative
contract agreement reached with the airline in September 1996. Two days later, the National Mediation Board releases
the parties from mediation. A strike deadline is eventually set for 12:01 a.m. on February 15. Minutes after the strike
deadline — and just into a brief strike — President Clinton declares an emergency, appoints a Presidential Emergency
Board and orders the parties to continue operating as usual while the board considers recommendations for a solution.
In the wake of the strike, American announces a major sale that generates 3 million calls to its reservations offices
and increases page-views on American’s Internet home page by more than 400 percent.
On March 17, American and the APA reach a second tentative agreement after several days of mediated talks on
remote Orcas Island, Wash.
American signs a memorandum of understanding with China Eastern Airlines whereby American will place its
AA designator on nonstop flights between Beijing and Shanghai and the United States, and China Eastern will place
its MU designator on specified American flights from the West Coast to New York Kennedy, Chicago O’Hare,
Washington Dulles and Dallas/Fort Worth.
American Eagle opens one of the world’s largest regional aircraft maintenance centers in Gwinn, Michigan. The
opening completes a consolidation of Eagle’s maintenance operations and reduces the number of heavy maintenance
locations from eight to two.
Travelocity, The SABRE Group’s Internet site for travel planning and booking, introduces FareWatcher, an E-mail
service that alerts Travelocity subscribers when a pre-designated fare goes down.
American celebrates the first birthday of its Net SAAver program, which generates weekly E-mails to subscribers
about fare specials for the following weekend. This first-of-its-kind program now generates hundreds of thousands of
dollars in revenue each month.
American Eagle concludes a $12 million renovation of its Chicago O’Hare facility, including 20 specially designed
jetbridges for use with its turboprops and soon-to-be-ordered regional jets.
AMR reports net earnings of $152 million in the first quarter, down from $157 million in 1996.
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