American Airlines 2003 Annual Report Download - page 8

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6
Airport Access The FAA has designated New York John F. Kennedy, New York LaGuardia, and Washington
Reagan airports as high-density traffic airports. The high-density rule limits the number of Instrument Flight Rule
operations - take-offs and landings - permitted per hour and requires that a slot support each operation. In April
2000, the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (Air 21 Act) was enacted. It
will eliminate slot restrictions at New York John F. Kennedy and New York LaGuardia airports in 2007. The
Company does not expect the elimination of these slot restrictions will have a material adverse impact on the
Company’s operations, or its financial condition, results of operations or cash flows.
Currently, the FAA permits the purchasing, selling, leasing or transferring of slots except those slots designated as
international, essential air service or Air 21 Act slots. Trading of any domestic slot is permitted subject to certain
parameters. Most foreign airports, including London Heathrow, a major European destination for American, also
have slot allocations. Most foreign authorities do not permit the purchasing, selling or leasing of slots.
Although the Company is constrained by slots, it currently has sufficient slot authorizations to operate its existing
flights and has generally been able to obtain slots to expand its operations and change its schedules. However,
there is no assurance that the Company will be able to obtain slots for these purposes in the future because,
among other factors, slot allocations are subject to changes in government policies.
In January 2004, American reached an agreement with the FAA whereby it agreed to reduce operations at
Chicago O’Hare during certain peak times. The FAA announced that a similar agreement between the FAA and
United was reached. American does not anticipate that this agreement with the FAA will have any material impact
on its operations.
Environmental Matters The Company is subject to various laws and government regulations concerning
environmental matters and employee safety and health in the U.S. and other countries. U.S. federal laws that
have a particular impact on the Company include the Airport Noise and Capacity Act of 1990 (ANCA), the Clean
Air Act, the Resource Conservation and Recovery Act, the Clean Water Act, the Safe Drinking Water Act, and the
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or the Superfund Act). The
Company is also subject to the oversight of the Occupational Safety and Health Administration (OSHA) concerning
employee safety and health matters. The U.S. Environmental Protection Agency (EPA), OSHA, and other federal
agencies have been authorized to promulgate regulations that have an impact on the Company's operations. In
addition to these federal activities, various states have been delegated certain authorities under the
aforementioned federal statutes. Many state and local governments have adopted environmental and employee
safety and health laws and regulations, some of which are similar to or stricter than federal requirements.
The ANCA recognizes the rights of airport operators with noise problems to implement local noise abatement
programs so long as they do not interfere unreasonably with interstate or foreign commerce or the national air
transportation system. Authorities in several cities have promulgated aircraft noise reduction programs, including
the imposition of nighttime curfews. The ANCA generally requires FAA approval of local noise restrictions on
aircraft. While the Company has had sufficient scheduling flexibility to accommodate local noise restrictions
imposed to date, the Company’s operations could be adversely affected if locally-imposed regulations become
more restrictive or widespread.
American has been named as a potentially responsible party (PRP) for contamination at the Double Eagle
Superfund Site in Oklahoma City, OK. American's alleged volumetric contributions are small when compared with
those of other PRPs. American is participating with a number of other PRPs in a Joint Defense Group that is
actively conducting settlement negotiations with EPA and state officials. The group is seeking a settlement on
behalf of its members that will enable American to resolve its past and present liabilities at the Site in exchange for
a one-time, lump-sum settlement payment. American expects that its payment will be immaterial.
American, along with most other tenants at the San Francisco International Airport (SFIA), has been ordered by the
California Regional Water Quality Control Board to engage in various studies of potential environmental
contamination at the airport and to undertake remedial measures, if necessary. SFIA is also seeking to recover its
past costs related to the contamination from the tenants. American’s potential contribution is unknown, but is not
expected to be material.