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AABI Winter Meeting

Fred Cleveland - Chief Operations Officer

February 20, 2013

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Who is American Eagle Airlines

• 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?

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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

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Applicant Pool 2010/20132011

• 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

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New Hire Performance 2011/20132011 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

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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

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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.)

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QUESTIONS?

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