AABI Winter Meeting

1. AABI Winter Meeting Fred Cleveland - Chief Operations Officer • February 20, 2013

3. Wholly owned Regional partner of American Airlines Operate 243 Bombardier and Embraer Regional jets 2700 pilots represented by the Air Line Pilots Association(ALPA) Train at The American Airlines Training Center in Fort Worth, TX AMR Filed bankruptcy in late 2011 Previously reported spin off of American Eagle has been put on hold Recent announcement of American Merger with US Airways What does it mean for American Eagle? Who is American Eagle Airlines

4. 2013 Recruiting Needs • We project hiring 300-400 pilots in 2013 • Hiring is driven by • “Flowthrough” of several hundred senior American Eagle Captains to AA • New Flight and Duty Time requirement of approx. 7% pilots • Anticipation of new aircraft in 2014 • We have seen an increase in Pilot Record Improvement Act(PRIA) requests in recent months • We want to be prepared for future hiring needs of mainlines

5. Applicant Pool 2010/2013 • 2011 • We averaged 500 active applications on file with a good replenish rate • Approximately 53% of applicants interviewed were offered employment • 2013 • We average less than 100 active applicants on file with a poor replenish rate • Approximately 35% of applicants interviewed are offered employment • Numerous FAA checkride and or undisclosed failures • Criminal background issues • High no-show rate for interviews

6. New Hire Performance 2011/2013 • 2011 Performance • 500-800 Hours – Excellent performance during ground and simulator training. We required graduation from a degreed program or a turbine transition program prior to hiring. Typically required additional Operating Experience. • Previous part 121 or 135 pilots – Good performance • Second Career – Poor performers. • 900-1500 Hours – Poorest performers. Typically had flight instructor background. Mostly teaching but not manipulating the flight controls. • 2012 Performance • 12 Have completed training (small sample and new 1500 hour min.) • One released due to performance – Second Career pilot • Two required additional simulator training • Summary • Pool of excellent performers no longer exists

7. What Are we Doing • We are developing “Bridge/Pipeline” programs with numerous accredited aviation universities • We are also working with several commercial aviation schools on “Pipeline” programs for their instructors • We recently came to an agreement with the American Airlines Flight Department for a guaranteed interview for Eagle new hires • We are currently offer a $5000 dollar signing bonus for new hires with a 2 year commitment • AA and AE Government Affairs groups continue to work on Capitol Hill to educate legislators on effects of pilot shortage

8. What Can AABI Schools Do? • Continue to promote Airline Pilot profession to prospective students and parents • Work at junior high level must be done to capture younger student’s interest • Costs for Professional Pilot programs need to be controlled, and kept affordable through grants, scholarships, and financing • Partner with Regional Airlines for successful career progression • Programs need to continue to prepare students to be successful Regional Airline aviators • Regional Jet transition courses • Cockpit Resource Management • Use of airline type policies, technology and equipment(Flight Guidance Systems, High Altitude Flight, etc.)

9. QUESTIONS?