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American Airlines Appeals Boston Skycap Lawsuit Verdict

American also Announces New Customer Skycap Policy in Boston to Ensure Compliance with Massachusetts Law

American Airlines said today it has asked the presiding judge to reverse a recent jury verdict in Boston federal court, which awarded nine Boston skycaps damages related to the tips law in Massachusetts. A 10th skycap, based in St. Louis, lost his case against American Airlines since he is not covered by the Massachusetts tips law. American's motion is partially based on the fact that eight of the skycaps who were awarded damages were not employees of American Airlines. American's filings have also asked the court for a new trial.

In addition, American Airlines today announced that, effective immediately, it will implement a no-tipping policy for all assistance with passenger baggage at Boston's Logan Airport. This change is to ensure that American Airlines is in compliance with the Massachusetts tips law in light of the recent jury verdict.

American's customers in Boston who wish to utilize the convenience of curbside check-in can still do so and pay the existing $2 per bag check-in fee collected by American or its third-party vendor, G2 Services. However, tipping will no longer be allowed. As before, American's customers still have the option to check their baggage without paying the curbside check-in fee by going inside the terminal and using either American's self-service kiosks or by going to an American Airlines ticket counter.

G2 Services, the vendor that provides skycap and other services to American Airlines at Logan Airport, has advised American Airlines that all of its Boston skycaps will receive immediate hourly wage increases that are in full compliance with all federal and state hourly wage laws. The one skycap directly employed by American at Boston has previously been paid at rates well above federal and state laws and he will receive a wage increase as well.

The airline said it is making the changes at Boston because of the unique nature of the Massachusetts tips law, as well as a recent amendment to Massachusetts wage and hour laws that will make triple damages automatic for violations, effective July 13, 2008. American also noted that even though it believes it has always been in compliance with the state's tips law, because of the lawsuit's outcome and the potential length of the appeals process, it felt immediate changes were necessary to ensure compliance with the laws in Massachusetts.

American said it planned no similar changes at this time at other airports in other states, since this tips law is unique to Massachusetts.

About American Airlines

American Airlines is the world's largest airline. American, American Eagle and the AmericanConnection® airlines serve 250 cities in over 40 countries with more than 4,000 daily flights. The combined network fleet numbers more than 1,000 aircraft. American's award-winning Web site, AA.com, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld® Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members serve nearly 700 destinations in over 140 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AmericanAirlines, American Eagle, the AmericanConnection® airlines, AA.com, We know why you fly and AAdvantage are registered trademarks of American Airlines, Inc.

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SOURCE: American Airlines

CONTACT: Tim Smith, Corporate Communications of American Airlines, on
5-1-08 ONLY, +1-817-681-7050, other days, +1-817-967-1577, corp.comm@aa.com

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