History of AMR Corporation and American Airlines

On the morning of April 15, 1926, a young aviator named Charles A. Lindbergh stowed a bag of mail in his little DH-4 biplane and took off from Chicago for St. Louis. Later that day, he and two other pilots flew three plane loads of mail from St. Louis to Chicago. At the time, Lindbergh was chief pilot of Robertson Aircraft Corporation of Missouri, which was the second aviation company to hold a U.S. airmail contract. It was one of scores of companies that eventually consolidated to form the modern-day American Airlines. The consolidation began in 1929, when The Aviation Corporation was formed to acquire young aviation companies, including Robertson. In 1930, The Aviation Corporation's airline subsidiaries were incorporated into American Airways, Inc. In 1934, American Airways became American Airlines, Inc. On May 13, 1934, Cyrus Rowlett Smith became president of American. Except for a period during World War II, "Mr. C.R." continued as chief executive officer until 1968, when he was named U.S. Secretary of Commerce. On June 25, 1936, American was the first airline to fly the Douglas DC-3 in commercial service. By the end of the decade, American was the nation's number one domestic air carrier in terms of revenue passenger miles. On Feb. 16, 1937, American carried its one-millionth passenger. American Airlines began trading on the New York Stock Exchange on June 10, 1939. In 1942, American entered the airline catering business with a subsidiary called Sky Chefs, providing food service to its passengers as well as to other airlines. In 1944, American introduced the first domestic scheduled U.S. freight service with the DC-3. As the business grew, Douglas DC-4, DC-6A and DC-7 freighters were put into service in the 1940s and 1950s. During World War II, half of American's fleet was turned over to the military airline, Air Transport Command, along with the crews who operated all over the world. The remaining fleet and personnel handled a vast increase in demand for air travel within the United States. From 1945 to 1950, American operated American Overseas Airlines (AOA), a trans-Atlantic division, which served a number of European countries. This was American's first European service. AOA was formed as a result of a merger between the international division of American and a company called American Export Airlines. AOA merged with Pan American World Airways in 1950. In 1946, American established its Tulsa Maintenance & Engineering Base. The end of World War II brought a series of new aircraft to fill the expanded need for air transportation. In 1947, American's first Douglas DC-6 entered service followed by the Convair 240 in 1948. By 1949 American had become the only airline in the United States with a completely post-war fleet of pressurized passenger airplanes. In 1948, American introduced the Family Fare Plan to enable families to travel together at reduced rates. It also introduced scheduled coach service, an economical and comfortable alternative to first class travel. In 1952, American introduced the Magnetronic Reservisor to keep track of available seats on flights. In 1953, American pioneered nonstop transcontinental service in both directions across the United States with the Douglas DC-7. In 1957, the world's first special facility for flight attendant training, the American Airlines Stewardess College, was built in Dallas/Fort Worth. On Jan. 25, 1959, American became the first airline to offer coast-to-coast jet service with the Boeing 707. Also in Jan. 1959, American introduced the Lockheed Electra, the first U.S. designed turboprop airplane. American continued into the jet age with the introduction of the turbofan engine in 1961, another industry first for American, and with the Convair 990 in 1962, also powered by fan-jets. At the end of 1959 and into the early 1960s, American, teaming up with IBM, introduced and implemented SABRE (Semi-Automated Business Research Environment), the largest electronic data processing system for business use. By 1964, the SABRE network extended from coast to coast and from Canada to Mexico. It became the largest real-time data processing system, second only to the U.S. government's SAGE system. American added other jets throughout the 1960s and 70s, including the Boeing 727 (1964) and the Boeing 747 (1966), as the older aircraft were retired. American's last piston airplane flight was operated with a DC-6 in Dec. 1966. In 1968, American was the first to order the McDonnell Douglas DC-10, which made its first scheduled flight in Aug. 1971. American gained its first Caribbean routes through a merger with Trans Caribbean Airways in 1970. It expanded those routes throughout the early 70s, and acquired other Caribbean routes in 1975 from Pan American World Airways Inc. In Feb. 1974, Albert V. Casey was elected president and chief executive officer; in April of that year he also assumed the position of chairman of the board. Also in 1974, American introduced One-Stop-Automated Check-in. American's first Boeing 747 freighter, capable of carrying 221,000 pounds of cargo, went into service in November. In 1975, American began marketing SABRE to travel agencies in the U.S. On April 24, 1977, American introduced the most popular fare in its history, the Super Saver. Initially offering discount fares from New York and California, Super Saver was expanded to all of American's routes in March 1978 and later to Mexico and Canada. Airline deregulation took place in 1978 and in January 1979, American launched a major route expansion, inaugurating service to new routes and new destinations across the U.S. and the Caribbean. American moved its headquarters from New York City to Dallas/Fort Worth, Texas in 1979. The new headquarters complex also included The Learning Center, a training facility; the Flight Academy, the pilot training facility, and the Southern Reservations Office. In 1980, Robert L. Crandall was elected president and chief operating officer. With fuel costs soaring, American accelerated the retirement of the Boeing 707 fleet in 1980. By August 1981, American had retired all its Boeing 707s aircraft, including their freighters. In 1981, American introduced the AADVANTAGE travel awards program, a revolutionary marketing program to reward frequent fliers. Also that year it unveiled "AAirpass," a concept that guaranteed fixed personal and business air travel costs with five-year to lifetime range of options. On June 11, 1981, American established its Dallas/Fort Worth hub. Later American added new cities and new routes to strengthen its hub-and-spoke networks. Early 1982 brought American its first 767, its 500 millionth passenger and its Chicago hub. In April 1982, it began interchange service with Alaska Airlines, linking Anchorage and Fairbanks with Houston and DFW via Seattle with 727s. American also returned to Europe with service between London's Gatwick Airport and DFW in May 1982. On May 19, 1982, stockholders approved a plan of reorganization and a new holding company was formed, AMR Corporation, which became the parent company of American Airlines, Inc. In 1983, American added the McDonnell Douglas MD-80 (Super 80) and announced an agreement with Pan American World Airways to exchange Boeing 747s for Pan Am's McDonnell Douglas DC-10s. On Dec. 12, 1983, AMR Services was formed as a subsidiary to provide aviation services to other airlines. In 1984, American introduced the American Eagle system, a network of regional airlines offering high-level service from small communities to large cities through connections to and from American Airlines. In the fall of 1984, American retired its 747 cargo freighter fleet and focused on smaller shipments carried in the bellies of its passenger aircraft. In 1985, Al Casey retired and Robert L. Crandall became chairman and chief executive officer of AMR Corporation and American Airlines. Ultimate Super Saver fares were introduced in 1985, offering American passengers up to 70 percent discounts and competition for the low-service, cut-rate carriers which had sprung up in the wake of deregulation. American also unveiled its Senior SAAVers Club, which offered discounts to senior citizens. In 1985, American introduced second-day door-to-door freight delivery using passenger aircraft. In 1986 and 1987, the delivery network expanded and evolved into same-day service by 1988. By 1985, more than 10,000 travel agency offices were using SABRE for travel reservations. American opened its Nashville hub in April 1986 and its San Juan hub in November. Also in 1986, American employees topped 50,000 for the first time and American sold its Sky Chefs subsidiary and completed the acquisition of Air California (Air Cal). By 1987, American had completed an underground facility -- secured against fire, earthquakes and any other disasters -- in Tulsa, Okla. to house the SABRE computer equipment and software that formed the world's largest private real-time computer network and travel information data base. Also in 1987, SABRE became available via the personal computer. In 1988, American acquired the Airbus A300-600ER to serve its Caribbean markets from locations on the mainland and in 1989, American put its first Boeing 757 into service. 1988 also saw the opening of American's reservations office in Raleigh/Durham, N.C. Also in 1989, American opened its seventh hub in Miami on Sept. 13. American also began construction on its second major maintenance base at Alliance Airport in Fort Worth. Ground was also broken in Fort Worth for a 750,000-square-foot expansion of AMR's corporate headquarters complex. Ground was broken again in 1990 for the expansion of American's facilities at DFW International Airport, an expansion of the pilot-training facilities at American's Flight Academy in the headquarters' complex, and a new reservations center in Tucson. Also, a new state-of-the-art System Operations Control (SOC) Center opened in 1990. Also in 1990, American's premiere international service, International Flagship Service, was introduced. A San Juan reservations center opened and American expanded its Latin American service with routes acquired from Eastern Airlines, with Miami as the focal point of the expansion. American's long-time president, C.R. Smith, died at the age of 90 in 1990. In 1991, American flew its billionth passenger, expanded its European routes, opened its western reservations office in Tucson, and took delivery of its first McDonnell Douglas MD-11 and Fokker 100 aircraft. On January 16, 1992, American opened the first state-of-the-art airline maintenance facility to be built in the United States in more than 20 years - the Alliance Maintenance and Engineering Base at Fort Worth's Alliance Airport. In 1992, American introduced Value Pricing. The plan was designed to make fares simple, sensible and fair. It offered customers substantially greater travel flexibility, and was a major revision to American's fare structure. Intense price competition made the Value Plan unfeasible, however, and American was forced to abandon it. AMR Consulting Group, a new subsidiary, was formed in 1992 to take advantage of a growing demand for consulting services in airline-related businesses. This expanded into the AMR Training and Consulting Group in July 1993. Also in 1992, American introduced American Flagship Service, a premium three-class transcontinental service for domestic travelers, and also continued its expansion in the European market with flights to Berlin and Paris. In 1993, AMR Corporation formed the SABRE Technology Group. It included AMR Information Services (AMRIS), SABRE Travel Information Network (STIN), SABRE Computer Services (SCS), SABRE Development Services (SDS), and AMR Project Consulting and Risk Assessment Units. On July 3, 1993, the American Airlines C.R. Smith Museum opened at its headquarters complex in Fort Worth. In April 1994, American signed a comprehensive service agreement with Canadian Airlines International to provide access to state-of-the-art airline administrative services and computer technology. Canadian Airlines successfully converted to AMR computer systems in November 1994. In May 1994, American added additional routes to London to become the airline with more service to Britain than any other U.S. airline. Also in 1994, American launched its first non-smoking transatlantic flight. In October of 1994, American launched First Call, allowing travel planners to speak with a group specialist to evaluate group travel needs, negotiate fares, book space and generate agreements in minutes. In 1995, Donald J. Carty became president of the AMR Airline Group and of American Airlines. Also in 1995, American announced its World Wide Web site. In 1996, AMR announced the SABRE Group's filing for Initial Public Offering (IPO), the first step in making SABRE its own company. In Sept. 1996, American officially launched AAccess ticketless travel and AAccess boarding. Also in 1996, American added inflight laptop computer capabilities to its aircraft, and announced that it would equip certain aircraft with defibrillators. In 1997, all American Airlines flights became non-smoking. Also, American introduced "stickerless" upgrades and became the first airline to expand ticketless travel to all transatlantic flights. Also in 1997, American introduced the College SAAver program. On May 20, 1998, Donald J. Carty became chairman, president and chief executive officer of AMR Corporation and American Airlines, Inc. upon the retirement of Robert Crandall. In 1998, American announced the addition of defibrillators to all of its aircraft, and said American Eagle would acquire small regional jets. Plans for a new Dallas reservations center also were announced. Additionally in 1998, American announced its acquisition of Reno Air and American Eagle's acquisition of Business Express. American Eagle completed its acquisition of Business Express in March of 1999, and Reno Air was fully integrated on August 31, 1999. On Sept. 21, 1998, American and four other airlines announced a new customer-driven global alliance - oneworldTM - launching a multi-million dollar program designed to raise the standard of global air travel. The new alliance took off on Feb. 1, 1999. In 1999, American dedicated the new Terminal B facilities at DFW and announced plans to build a new terminal at New York's JFK Airport, breaking ground in New York in November. In 1999, American also introduced the Boeing 777 and the 737-800 and completed the installation of defibrillators on all its aircraft. Also, American became the first airline to offer DVD in-flight video players on scheduled flights. Also in 1999, American began an expansion of its West Coast service, and American Eagle opened a new terminal in Los Angeles and took delivery of its first 37-seat Embraer ERJ-135. In February 2000, American announced More Room Throughout Coach, removing an average of two rows on every aircraft to add legroom throughout the entire coach cabin. American later decided to expand legroom in business class. In March 2000, American received the CIO Magazine's 2000 Web Business 50/50 Award for its AA.com web site. Also in 2000, AMR completed the spin-off of SABRE into its own company. In 2000, American announced plans to renovate Terminal B at Boston's Logan Airport and also announced the addition of fully flat Flagship Suite seating for its Boeing 777. Also, American named Alliance as the "maintenance home" for its 777 fleet. In January 2001, American's first aircraft featuring bigger overhead storage bins took to the skies. Also, American announced that it had agreed to purchase substantially all the assets of Trans World Airlines, Inc. In April 2001, American Airlines completed acquisition of TWA's assets. At about the same time, American opened a new Admirals Club and Lounge facilities at Dallas/Fort Worth Airport in memory of former Special Services employee Walter Henry Hagan. In 2001, American Eagle accepted delivery of 15 44-seat regional jets (ERJ-140) manufactured by Embraer of Brazil. American also announced plans to accelerate retirement of 36 aircraft -- 19 DC-9s, 12 Boeing 727s, 4 MD-11s and one Fokker 100. Also in 2001, American Airlines was recognized by the State of California EPA's 2001 Governor's Environmental and Economic Leadership Awards Program. The award complemented the previous Breath of Life Award, the Clean Cities Award at El Paso and the National Clean Cities Award received by American Airlines earlier this year. In October 2001, American announced that it will accelerate construction of its new $1.3 billion terminal at New York's JFK Airport, advancing the completion date nine months to September 2006. On April 2, 2002, Gerard J. Arpey was elected President and Chief Operating Officer of American Airlines. In April 2002, American began daily nonstop Boeing 777 service between New York JFK and Tokyo, giving AA four U.S. gateways to Japan. On April 30, 2002, American operated its final Boeing 727 passenger flight, marking the retirement of an airline industry workhorse by its largest operator. AA began flying the 727 in 1964 and was among the first to operate the airplane. At its peak, AA operated 182 Boeing 727s. In May 2002, American was named to DiversityInc.com’s annual list of Top 50 Companies for Diversity, coming in 15th. AA was the only airline to make the list. On Aug. 1, 2002, American officially dedicated its $300 million improvement project at Los Angeles International Airport’s Terminal 4, culminating four years of work on what was the largest project of its type ever undertaken by a single carrier at LAX. In a move to make popular Web fares more widely available to consumers while reducing its total distribution costs, American on Sept. 25, 2002, announced its innovative EveryFare program. With EveryFare, AA provides traditional travel agents in the U.S. and Canada the option to access and sell its very low Web fares, previously offered only via American’s own Web site, AA.com, and select low-cost distribution channels. In exchange, travel agents provide AA with long-term distribution cost savings through a creative cost-sharing arrangement. On April 24, 2003, Edward A. Brennan was named Executive Chairman of AMR Corporation and Gerard J. Arpey became Chief Executive Officer and President of AMR. Gerard J. Arpey was elected Chairman of AMR Corporation and American Airlines, Inc. in May 2004. On July 10, 2004, Albert V. Casey, who served as Chairman and CEO of American from 1974 until 1985, died at his home in Dallas, Tex. He was 84. In June 2004, AMR Corporation, the parent company of American Airlines and American Eagle, celebrated 65 years of being listed on the New York Stock Exchange. In July 2005, American opened the first phase of its new 1.5-million-square-foot terminal at New York’s Kennedy International Airport. In October 2005, American began operating from the new 2.1-million-square-foot International Terminal D at Dallas/Fort Worth International Airport. On Nov. 14, 2005, American launched daily nonstop service between Chicago and Delhi, India, flying the 7,500 miles – AA’s longest nonstop route – with Boeing 777 aircraft. In 2006, American celebrated the 25th anniversary of its AAdvantage program – the world’s first frequent flyer program that revolutionized the airline industry and set the standard for similar initiatives in many other businesses. AAdvantage began with 300,000 members. Today, it has more than 50 million members. On April 2, 2006, American launched its first-ever service to China by inaugurating a daily nonstop Boeing 777 flight between Chicago and Shanghai. On June 11, 2006, American celebrated 35 years of service to Puerto Rico, now the focal point of its Caribbean route network. In October 2006, C.R. Smith, aviation pioneer and long-time head of American Airlines, was inducted into the Texas Transportation Hall of Honor. On Jan. 17, 2007, American relocated to Terminal 2 at Tokyo’s Narita International Airport. It was a move that significantly improved convenience for travelers to and from Japan by housing American and four of its fellow oneworld Alliance airlines in the same Narita facility. In May, 2007, American moved its international service at New York’s Kennedy International Airport into Concourse B of its new $1.3 billion JFK terminal. The new terminal is near a new U.S. Customs and Immigration facility. The move set the stage for improving the overall travel experience for passengers arriving into and departing from the JFK gateway. On May 19, 2007, American celebrated the 25th anniversary of its nonstop service between Dallas/Fort Worth and London. An American Boeing 747 operated the first DFW-London Gatwick trip on May 19, 1982. American announced plans to begin daily nonstop service between Chicago O’Hare International Airport and Buenos Aires, Argentina, effective Dec. 13, 2007. In September, 2007, the U.S. Department of Transportation awarded American the tentative right to begin service between Chicago’s O’Hare International Airport and Beijing, China, effective March 25, 2009. American already flies daily between Chicago O’Hare and Shanghai, China. In September, 2007, American marked its 65th anniversary of service to Mexico. The airline began serving Mexico on Sept. 6, 1942. Today, American and its regional affiliate, American Eagle, jointly offer more than 360 weekly flights between Mexico and the U.S. and serve 14 Mexican cities from five of their largest hubs. In October, 2007, American announced that it will begin nonstop service between Chicago O’Hare International Airport and Moscow, Russia, on June 2, 2009. On Oct. 26, 2007, American launched nonstop Boeing 767-300 service between New York’s John F. Kennedy International Airport and London’s Stansted Airport. In November, 2007, AMR Corporation, the parent company of American Airlines, announced that it plans to divest American Eagle, its wholly owned regional carrier. The company said it expects to complete the divestiture in 2008, but that the form of the divestiture is still under study. In January 2008, employees at American’s Kansas City maintenance base completed the first aircraft installation of the Aircell Internet broadband connectivity solution. American is the first U.S. airline to offer the broadband solution. AA plans to install and test the technology in 2008 on all 15 of its Boeing 767-200 aircraft that primarily fly transcontinental routes. In January 2008, American introduced a mobile version of AA.com that allows customers to access many of the helpful features of AA.com via a Web-enabled cell phone or other Web-enabled device. With the mobile feature, customers can conveniently log on to AA.com wherever their cell phone or PDA works – in the middle of a city or miles out in the country, in the United States or overseas – without the need for a desktop or laptop computer. The American Airlines Cargo Division (AA Cargo) received the “International Airline of the Year” awards from the Delivery and Logistics Association at its annual AirCargo 2008 Conference in Orlando, Fla. In March 2008, American launched Travel Bag, a new application on the Facebook Platform that makes it easy for users to share travel experiences with friends in their network, offer and read reviews and comments on things such as restaurants and shops, and even create countdowns for upcoming events or trips to let friends know what they’re doing. In April 2008, American added another level of convenience, flexibility and choice for customers by offering the option to pay by electronic check when buying tickets on the airline’s AA.com Web site. This allows customers who purchase tickets at AA.com to pay directly from any personal bank account – such as a checking account or saving account – that is funded in United States dollars. In April 2008, American presented Golden Heart awards to 19 flight attendants who have administered emergency medical attention by using onboard defibrillators. In ceremonies for the awards, American and the Association of Professional Flight Attendants, which represents AA’s flight attendants, also honored the 82 people whose lives have been saved since American became the first airline to install defibrillators on its aircraft in 1997. In April 2008, American expanded the diversity and inclusion information on its AA.com Web site, further enhancing the airline industry’s most comprehensive online resource for such information. AA’s commitment to diversity and inclusion can be explored within the site’s “About Us” section, just one click from the home page. On May 1, 2008, American celebrated the 10th anniversary of its nonstop service between Chicago and Tokyo. AA opened the route on May 1, 1998. On June 2, 2008, American launched its first-ever service between the U.S. and Russia with a daily nonstop Boeing 777 flight between Chicago’s O’Hare International Airport and Domodedovo International Airport in Moscow. AA became the first U.S. carrier to fly directly from Chicago to Domodedovo Airport. In June 2008, American added thousands of additional hotel properties to its AA.com Web site. Combined with a new Price-Match Guarantee and a No Cancellation or Change Fee policy on all hotel bookings, the added properties made AA.com an even more compelling customer resource for booking hotel stays. In June 2008, American celebrated the 20th anniversary of its Chefs’ Conclave, a program that enlists the expertise of prominent and well-respected chefs to help AA craft the direction of its in-flight food service. American was the first airline to gather such culinary expertise when the Chefs’ Conclave was founded in 1988. The stars of today’s Conclave are Nancy Brussat of Convito Cafe’ & Market, Dean Fearing of Fearing’s, and Stephan Pyles of Stephan Pyles. On August 11, 2008, American and Susan G. Komen for the Cure, the world’s largest breast cancer organization, announced an expanded partnership with the unveiling of two specially co-branded aircraft – an American Airlines 757 and an American Eagle Embraer 145 – each incorporating the renowned vivid pink-ribbon motif. Under the broadened partnership, American becomes Komen for the Cure’s official airline and first-ever Lifetime Promise Partner. AA pledged to raise $1 million annually for eight years to fund Komen for the Cure’s first Promise Grant – a $7.5 million, five-year study to inflammatory breast cancer at The University of Texas M. D. Anderson Cancer Center. In August 2008, American announced it will take delivery of another six Boeing 737-800 aircraft in 2010, bringing the total of 737-800s to be delivered to American in 2009-2010 to 76 aircraft. AA also has firm commitments made previously for 11 737s in 2013. The announcement was another step in American’s fleet renewal plan designed to replace its MD-80 fleet with more fuel-efficient 737 aircraft while also lessening AA’s impact on the environment and continuing its investment in products and services for the benefit of customers. In August 2008, retired American Airlines Captain Dave Harris was honored by the Organization of Black Airline Pilots for being the first African-American to fly for a commercial airline. Capt. Harris retired from AA in 1994 after more than 30 years of service. In August 2008, American became the first airline to offer full in-flight internet in the U.S. when it launched the mobile broadband service, Gogo provided by Aircell, on its entire fleet of Boeing 767-200 aircraft. On Sept. 15, 2008, AMR Corporation, the parent company of American Airlines, completed the sale of American Beacon Advisors, its wholly owned asset-management subsidiary, to Lighthouse Holdings, which is owned by investment funds affiliated with Pharos Capital Group and TPG Capital, two leading private equity firms. AMR received a total compensation of $480 million. While primarily a cash transaction, AMR will acquire a small equity stake in the parent company of Lighthouse Holdings. American Beacon will continue to provide a number of services for AMR and its affiliates. In September 2008, American announced that it had completed upgrades to its Boeing 777 fleet, giving premium customers greater comfort, flexibility, convenience and privacy. With the upgrades, all 47 Boeing 777 aircraft now feature luxurious Flagship Suite and next-generation Business Class. During September 2008, the American Airlines Cargo Division played a key role in bringing an extraordinary exhibition, Tutankhamun and the Golden Age of the Pharoahs, from London to the U.S. for an extended engagement at the Dallas Museum of Art. AA Cargo was entrusted with shipping more than 130 priceless artifacts. In late September 2008, American was preparing for the introduction of PriorityAAcess privileges for its top customers. PriorityAAccess is an array of enhancements designed to make the airport process and overall travel experience more convenient. It is aimed at American’s AAdvantage elite status members, First and Business Class travelers, AAirpass customers, and passengers traveling on full-fare Economy Class tickets. In late September, American wrote a letter to Congress supporting passage of the proposed Employment Non-Discrimination Act. The letter noted that American was the first major airline to implement same-sex domestic partner benefits, first to implement both sexual orientation and gender identity in its workplace non-discrimination policies, and first to have a recognized LGBT employee resource group – GLEAM. On Oct. 15, 2008, American announced that it will enter a purchase agreement with Boeing to acquire 42 fuel-efficient Boeing 787-9 Dreamliners, with rights to acquire up to 58 additional 787 aircraft. The initial 42 Boeing 787-9 aircraft is scheduled for delivery beginning in September 2012 and ending in 2018. The 58 additional 787 aircraft may be scheduled for delivery beginning in 2015 and ending in 2020. On Oct. 26, 2008, American relocated its operations at Raleigh/Durham International Airport into the airport’s new Terminal 2. American has been serving RDU since 1985. In October 2008, American Airlines Cargo Division announced its participation in the U.S. launch of an air cargo industry e-freight initiative which supports a move toward paperless documentation. E-freight eliminates the need to send 12 paper documents with air cargo shipments. On Nov. 13, 2008, American introduced mobile boarding passes at selected airports for use with mobile phones or PDAs. The service gives customers at select airports the choice to receive their boarding passes electronically on their mobile phones or PDAs. On Nov. 20, 2008, American Airlines Chairman and CEO Gerard Arpey was nominated Chairman of the Governing Board of oneworld, the leading quality global alliance. American is a founding member of oneworld. In December, 2008, American announced that it will begin daily nonstop service between Dallas/Fort Worth and Madrid, Spain, on May 1, 2009. Madrid will be American and American Eagle’s 34th international destination at the DFW hub. In December, 2008, American re-opened its Flagship Lounge in Concourse E at Miami International Airport. On Jan. 16, 2009, American announced that it had implemented an Aviation Safety Action Program (ASAP) in conjunction with the Association of Professional Flight Attendants and the Federal Aviation Administration. The safety partnership encourages flight attendants to voluntarily report safety-related information. AA’s program is the largest ASAP in the world. In January, 2009, American Airlines and NBC Universal announced that they had reached an agreement for inflight broadcast content starting on March 1, 2009. In February, 2009, American announced that its popular “Search by Price & Schedule” option on the AA.com Web site is now available in Spanish on AA.com en Español. On Feb. 3, 2009, American opened a new Admirals Club lounge at Washington Dulles International Airport as the last stage of AA’s relocation into Terminal B at Dulles. In February, 2009, American enhanced its “Remember Me” speech-recognition technology, making it more convenient than ever for customers who call to get departure gate, flight times and other information about upcoming trips. In February, 2009, the oneworld global alliance that includes American Airlines as a founding member marked its 10th anniversary. On Feb. 18, 2009, American, which already offered more flights to Brazil than any other U.S. airline, made it even more convenient for travelers to see more of South America’s largest country by entering into an interline ticket and baggage agreement with GOL, the fastest growing airline in Brazil and that country’s low-cost leader. In March 2009, American and Aviation Partners Boeing (APB) announced the first revenue flight of a Boeing 767-300ER with APB’s Blended Winglets™. The winglets improved fuel efficiency -- up to 500,000 gallons of fuel annually depending on miles flown, and resulted in a reduction of up to 277,000 metric tons of carbon dioxide (CO2) emissions annually, according to APB. On March 10, 2009, American unveiled a new look for AANegotiations.com, its Web site devoted to providing information and news about American’s labor negotiations for interested employees, their families, media and the general public. The company updated the Web site based on user feedback regarding AANegotiations.com content and information. On March 16, 2009, American Airlines completed extensive renovations to its largest Admirals Club lounge at Chicago O’Hare International Airport. On March 25, 2009, American named classically trained winemaker and viticulturist Ken Chase the airline’s official wine consultant in selecting fine wines for customers traveling on American’s various routes throughout the world. On March 31, 2009, American announced the expansion of Gogo® Inflight Internet on more than 300 domestic aircraft. American planned to install the Aircell® system on its domestic MD-80 and Boeing 737-800 aircraft fleets, beginning with 150 MD-80 aircraft in 2009. The expansion was in addition to the 15 of American’s Boeing 767-200 aircraft which had the service. In April 2009, American teamed up with Operation Iraqi Children (OIC), in cooperation with the U.S. Department of Defense, to fly more than 20 tons of basic school supplies, new Crocs™ shoes and other items to children in Iraq. This was the largest one-time shipment of supplies in OIC’s history, with 10,000 school kits delivered. On April 13, 2009, American welcomed two Boeing 737-800 aircraft into its fleet on the eve of their maiden passenger flights. The new airplanes, which went into service April 14, were the first of the company’s new 737s that are part of an ongoing fleet renewal plan to replace its MD80 fleet On April 27, 2009, American rolled out a Boeing 777 aircraft sporting a special oneworld® Alliance exterior paint design – the first of four aircraft to receive such treatment – as a way to increase awareness of the 10-member alliance. The new livery was also part of the celebration of oneworld’s 10th anniversary in 2009. On May 1, 2009, American launched daily nonstop service from Dallas/Fort Worth International Airport (DFW) to Madrid, Spain (MAD). Madrid was the 34th international destination served by American and American Eagle from its Dallas/Fort Worth hub. On May 7, 2009, American announced it was in the process of reconfiguring 18 of its 124 Boeing 757s for use on international routes. American also announced enhancements to American’s fleet of 106 Boeing 757 domestic aircraft would begin later that same year. Also in May 2009, American, which invented the frequent flyer program when it launched the AAdvantage® program nearly three decades ago, further revolutionized award travel by introducing “One-Way Flex Awards.” One-Way Flex Awards offered a whole new approach to frequent flyer award travel, creating even greater value for AAdvantage members. In June 2009, American embarked upon a journey that aimed to prove that trans-Atlantic flights can be operated a bit greener and leaner. Through the Atlantic Interoperability Initiative to Reduce Emissions (AIRE), American was the first U.S. airline to test next-generation technology and procedures that significantly reduce carbon emissions and save fuel on trans-Atlantic routes. On June 29, 2009, American announced the completion of extensive renovations to its Admirals Club at Sao Paulo Guarulhos International Airport (GRU) in Brazil. On July 8, 2009, American, which offers more flights to Brazil than any other U.S. airline, entered into a frequent flyer agreement with GOL Airlines to provide benefits to members of both American’s AAdvantage® and GOL’s Smiles programs. On July 9, 2009, American Airlines and Etihad Airways, the national airline of the United Arab Emirates (UAE), announced a new codeshare agreement which paved the way for closer commercial cooperation between the two airlines (subject to government approval). On July 13, 2009, American introduced the new AA.com® Notification Center which enabled customers to set their flight status notification preferences just one time and then automatically receive messages for all their future flights, instead of having to request notifications for each different flight. On July 31, 2009, American announced the addition of a new “fare-finding” feature to its Travel Bag application within Facebook®, the popular networking platform. On Aug. 26, 2009, AMR Corporation announced it had signed a letter of intent with HP to develop a next-generation Passenger Service System. The new system, referred to as Jetstream, enabled American to deliver products and services to its customers and employees with greater consistency and agility. Also on Aug. 26, 2009, American Eagle extended its company-wide commitment to environmental sustainability by switching to innovative clean technology when repainting its aircraft. Eagle adopted Pantheon Enterprises’ non-toxic surface pretreatment, PreKote, to prep all of its planes for painting. On Sept. 17, 2009, AMR Corporation announced it had obtained a total of $2.9 billion in additional liquidity and new aircraft financing, announced plans to strengthen its network by reallocating capacity to hubs in Dallas/Fort Worth, Chicago, Miami and New York, and enhancing its fleet to better serve customers. In September 2009, The Sherpa Pet Group, a leader in the pet products industry, launched the first-ever Guaranteed On Board™ pet travel program (www.flygob.com) and new American Airlines pet travel carriers. Also in September 2009, AMR Corporation announced it had raised a total of $4.2 billion in additional liquidity and new aircraft financing during the month. All of this financing was in addition to the more than $1.2 billion the Company raised earlier that year through both private and public financings of owned aircraft and the financing of new 737s. In October 2009, American launched a first-of-its-kind social networking site, BlackAtlas.comSM, which combined the best features of a travel site with the power of social networking to create a dynamic online community for travelers to share experiences unique to the black community. In October 2009, American Airlines announced its participation in the Paramount Pictures film “Up in the Air” by Oscar®-nominated director Jason Reitman and starring Oscar winner George Clooney. The film told the story of a business traveler whose cherished life on the road is threatened just as he was on the cusp of reaching 10 million frequent-flyer miles and after he met the frequent-traveler woman of his dreams. In October 2009, American Airlines and American Eagle employees joined forces to do their part in the fight against breast cancer. American and American Eagle encouraged their nearly 90,000 employees to “think pink” as they participated in the Susan G. Komen for the Cure® program Passionately Pink for the Cure®. On Oct. 15, 2009, American Airlines Cargo Division (AA Cargo) celebrated 65 years of air cargo service to global customers spanning six continents. The anniversary marked the date of the air cargo industry’s first scheduled airfreight service on Oct. 15, 1944. On Nov. 9, 2009, Mexicana became part of oneworld® – adding Mexico and Central America’s leading airline to the world’s leading quality airline alliance. Its subsidiaries MexicanaClick and MexicanaLink joined oneworld at the same time, as affiliate members. On Nov. 19, 2009, American launched its new Wi-Fi Widget that enabled customers to identify Wi-Fi equipped flights 24 hours prior to departure. In December 2009, more than 1,300 spouses and children of fallen military personnel received a Texas-sized welcome when they arrived in the Dallas/Fort Worth Metroplex as part of the annual Snowball Express event - the first time Snowball Express traveled to North Texas. Snowball Express, a volunteer, not-for-profit organization, arranged an all-expenses-paid trip to provide hope and new memories for the children and spouses of military men and women who lost their lives while defending our nation. On Dec. 9, 2009, American Airlines and Brazil’s GOL Airlines enhanced their alliance by finalizing a codeshare agreement to place American’s AA code on GOL’s growing network of flights within Brazil. Also in Dec. 2009, American Airlines praised U.S. and Japanese government negotiators for reaching an agreement on Open Skies that established and fostered a healthy global aviation framework in the Pacific Rim and replace the bilateral agreement that had governed aviation between the U.S. and Japan since 1952. On Dec. 22, 2009, at approximately 9:22 p.m. CST, American Airlines Flight 331, a Boeing 737-800 aircraft, sustained damage when it overran the runway on landing at Kingston, Jamaica’s Norman Manley International Airport. The flight originated out of Ronald Reagan Washington National Airport, operated into Miami International Airport, and then operated into Kingston’s Norman Manley International Airport. All onboard survived the incident. In January 2010, AMR Corp partnered with the American Red Cross to provide aid to people affected by a massive earthquake in Haiti. AAdvantage members were asked to help by donating to the Red Cross, and donations helped the not-for-profit organization provide shelter, food and other assistance to earthquake victims. On Feb. 1, American Airlines went cashless onboard all flights. On Feb. 2, 2010, AMR Chairman and CEO Gerard Arpey made the following statement after Japan Airlines (JAL) said it will continue and expand its successful relationship with American and the oneworld® Alliance. “We respect that this was an important decision for Japan Airlines and the government of Japan, and we believe they have made the right choice for JAL’s many stakeholders, for Japan’s national interests and for consumers traveling between Japan and the United States. When oneworld executives and I recently met with JAL Chairman Dr. Kazuo Inamori and President Masaru Onishi and their team, we reiterated our commitment to support JAL on its path to success. We stand firmly by that commitment, and look forward to working closely with JAL to support its restructuring efforts.” On Feb. 10, 2010, American launched a new virtual museum, BlacksinAviation.com that explored the history of African Americans in aviation from pre-civil rights to the present. The virtual museum highlighted the challenges and accomplishments of African-American aviation professionals, including the struggle for racial equality in commercial airlines, the military and aerospace. On Feb. 12, 2010, American Airlines and Japan Airlines (JAL) filed an application with the U.S. Department of Transportation (DOT) for antitrust immunity to forge a closer relationship and implement a Joint Business Agreement (JBA) governing the operation of their flights between North America and Asia. On Feb. 13, 2010, American Airlines received tentative approval from the United States Department of Transportation (DOT) for its trans-Atlantic antitrust immunity (ATI) request submitted in conjunction with fellow oneworld® alliance members British Airways, Iberia Airlines, Finnair and Royal Jordanian, in addition to approval of a joint business agreement proposed by American, British Airways and Iberia. In February 2010, India’s leading domestic carrier and only five-star airline, Kingfisher Airlines, lined up to join oneworld® after signing a memorandum of understanding as its first step towards full membership of the world’s leading quality airline alliance, subject to Indian regulatory approval. On Feb. 25, 2010, American Eagle announced it would begin First Class service on all of its CRJ-700 jets. On March 1, 2010, AA Cargo announced its newly relocated cargo terminal at John F. Kennedy International Airport (JFK) in New York. The state-of-the-art facility offered the latest in streamlined handling capability with more than 135,000 square feet of warehouse space and 24 dock doors. On March 10, 2010, American Airlines AAdvantage® members received the ability to redeem AAdvantage miles for flights on GOL, one of South America’s largest airlines. On March 11, 2010, American expanded its mobile boarding pass program to customers departing on domestic flights from 19 additional airports for a total of 27 airports with the program. On March 31, 2010, American announced it was bolstering its service for customers in New York City by announcing plans to add seven new destinations served by 23 additional flights to and from the city's two airports, enhancing the travel experience with upgraded aircraft, and providing customers with improved terminal facilities. American also designated a new officer position for airport operations and broad oversight of all the company's activities in the New York market. In addition, American announced an agreement with JetBlue Airways that offered JetBlue customers simple connections to American's international flights and new convenient domestic flight options on JetBlue for American's customers in and out of New York and Boston. On May 7, 2010, American received authority from the U.S. Department of Transportation (DOT) to operate daily, year-round scheduled service from New York’s John F. Kennedy International Airport to Tokyo International Airport at Haneda (HND), starting Oct. 1, 2010. On May 17, 2010, American Airlines completed extensive renovations to both the Admirals Club Lounge and the Flagship Lounge at London Heathrow Airport. On May 25, 2010, American launched service between Chicago O’Hare International Airport and Beijing Capital International Airport, one of the world’s busiest airports. In May 2010, American introduced the AAdvantage Mileage MultiplierSM product. Available via airport Self-Service Check-In machines throughout the U.S., the new Mileage Multiplier option enabled AAdvantage members to increase their mileage balance faster by purchasing extra AAdvantage bonus miles with every eligible flight. On June 7, 2010, Kingfisher Airlines became a member elect of oneworld® after completing a formal membership agreement with the alliance – moving India's leading airline a landmark step towards flying as part of the world's premier airline alliance. On June 10, 2010, AMR Corporation named Daniel P. Garton President and Chief Executive Officer of American Eagle, one of the world’s largest regional airlines. AMR also reiterated its intent to evaluate the possible divestiture of American Eagle. On June 15, 2010, American announced its “Your Choice” services. Your Choice provided key services intended to make the customer travel experience even more personalized, convenient, cost-effective and flexible than ever before. As part of the initial Your Choice offering, American introduced a “Boarding and Flexibility Package.” On June 22, 2010, American announced that airport employees using the airline’s mobile YADA device – which stands for Your Assistance Delivered Anywhere – were even better equipped to serve customers anywhere in the airport with the additional ability to print boarding passes. The mobile YADA device enabled airport employees to provide real-time information on flights, gates, standby lists, print bag tags and boarding passes, and even pull up maps of other airports. On June 24, 2010, American was awarded by the United States Department of Transportation rights to fly 11 new flights per week between the United States and Brazil beginning Nov. 18. In June 2010, American announced its original 76 Boeing 737-800s were being updated to match the customer benefits and amenities featured on its newly-delivered 737-800 aircraft. On June 30, 2010, American expanded its mobile boarding pass program to four additional airports for a total of 42 airports. London Heathrow was the first international airport to receive the program. On July 6, 2010, American was awarded final approval from the U.S. Department of Transportation (DOT) to operate daily, year-round, nonstop service between New York’s John F. Kennedy International Airport (JFK) and Tokyo International Airport at Haneda (HND), two of the world’s principal financial centers. In July 2010, American Airlines and JetBlue Airways launched their partnership to offer customers convenient connections and more travel options to and from New York and Boston. The two companies agreed to begin a frequent flyer relationship later in 2010. On July 20, 2010, American Airlines, British Airways, and Iberia received final approval from the U.S. Department of Transportation (DOT) to create a joint business governing flights between North America and Europe and will expand their global cooperation as a result of receiving antitrust immunity. Fellow oneworld® members Finnair and Royal Jordanian also received antitrust immunity from DOT. The European Union approved the joint business on July 14. On July 21, 2010, capitalizing on the momentum generated by the granting of antitrust immunity across the Atlantic, and anticipating similar immunity across the Pacific, AMR Corporation announced a reorganization of its senior management team. Tom Horton, previously Executive Vice President of Finance and Planning and Chief Financial Officer, was promoted to the position of President – AMR and American Airlines. Also on July 21, 2010, American Airlines announced an order for 35 additional Next-Generation Boeing 737-800s, to be delivered in 2011 and 2012.The 35 737s will be in addition to the 84 new 737s that began entering American’s fleet in April 2009, when the Company launched its replacement plan for its MD80 narrowbody fleet. The 737s are 35 percent more fuel-efficient on a seat-mile basis than the MD80 aircraft that they are replacing – an average savings of 800,000 gallons of fuel per aircraft per year. In July 2010, American released the first version of its iPhone application. The free app for iPhone and iPod Touch offered customers a new way to stay connected with the airline while they were traveling. On July 27, 2010, American Airlines announced that it had signed an agreement with Air Berlin outlining a comprehensive codeshare and frequent flyer relationship that allowed customers of each airline to book and travel on the other’s network and earn frequent flyer miles as well. Also in July 2010, American announced the completion of extensive renovations to the Admirals Club lounge at Logan International Airport in Boston. In August 2010, American introduced Express Seats SM under its Your Choice SM line of products and services. Express Seats allowed travelers to purchase seats in the first few rows of Coach, including bulkhead seats in that cabin. Additionally, customers who purchased an Express Seat were able to board with Group 1 of General Boarding for their flight, providing them the convenience of being among the first Coach customers on and off the plane. Revised August 2010