AMERICAN IS DISAPPOINTED AT NOT WINNING NEW U.S.-CHINA ROUTE AUTHORITY, BUT CHEERS PROSPECT FOR CHINA ENTRY THROUGH CHINA EASTERN PARTNERSHIP

Airline Applauds U.S. Government For Diligent Negotiating Efforts
And Praises "Unprecedented Support" From Employee Groups

American Airlines has said that it is disappointed that United Parcel Service, and not American, was selected by the U.S. Department of Transportation to fly the additional U.S.-China route that was created for a U.S. carrier in the new U.S.-China bilateral aviation agreement.

At the same time, American said it is extremely pleased that it may have another excellent chance to enter the U.S.-China market under the new traffic opportunities that were announced today by the DOT and recently agreed to by the United States and Chinese governments.

Using the new authorities will require U.S. carriers to work with Chinese airline partners, and American said it is well positioned to do this through its partnership with China Eastern Airlines, with whom American has had a relationship since 1998.

"We will be exploring opportunities for new jointly marketed services with China Eastern promptly," said Don Carty, American’s chairman and chief executive officer. "As we convert these opportunities into additional China services, 2001 should become an important milestone in our strategy to build a strong Pacific network."

–In reflecting on the China route decision, Carty praised American’s employees and labor unions, as well as a broad network of community and political leaders, all of whom, he said, strongly supported AA’s China bid and made the new U.S.-China partnership opportunities possible.

"The ability to expand in the U.S.-China market in concert with our Chinese partners is an extraordinarily important step that can lead to increased trade, expanded employment and new links to China for communities throughout the United States," Carty said.

"We applaud the U.S. government and its team of dedicated negotiators for their diligence and perseverance in working with their Chinese counterparts to make these additional service opportunities possible," Carty said.

With regard to American’s employees, unions and community supporters, Carty said their direct and impassioned involvement in pressing for expanded trade with China played a vital role in encouraging the U.S. government to persist in efforts to win the added China opportunities for U.S. airlines.

"It is fair to say that we would not have succeeded without this unprecedented support," Carty said. "Employees in great numbers went to Washington earlier this year to push for expanded trade with China, and their voices, along with those of our labor unions and our communities, were heard and clearly made the difference.

"We put together a service proposal that would have dramatically improved air service between the U.S. and China, stimulating more trade and travel between our nations and producing economic expansion and more jobs," Carty said.

"Although we are naturally disappointed that we did not win the case, we look forward with great anticipation to implementing the opportunities provided under the new agreement," he said.

American’s existing relationship with China Eastern involves codesharing service through its Los Angeles gateway.

American places its "AA" code on China Eastern flights between both Los Angeles and Beijing and Shanghai. China Eastern has its "MU" code on American flights between Los Angeles and Dallas/Fort Worth, Washington Dulles, New York Kennedy, Chicago O’Hare, Boston and Miami.