Eric Silverman American Airlines Mgr. ATC/Airfield Ops.: PHL/NY & NE. June 22, 2016
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1 Eric Silverman American Airlines Mgr. ATC/Airfield Ops.: PHL/NY & NE June 22, 2016
2 Network Overview American s Hubs 2
3 Network Overview - PHL 3
4 Global Network Carrier 4
5 2015 Highlights Another Outstanding Year Integration Has Gone Smoothly Significant Investments in Operation, Product and Fleet Introducing New Revenue Opportunities Driving Long-Term Shareholder Value - Record profit of $6.3 billion* - Record pretax margin of 15.3 percent* - PSS cutover complete - Ratified joint contracts with our pilots, flight attendants and customer service agents - Took delivery of 127 new aircraft and removed 143 aircraft from the fleet - Now have the youngest fleet of the four largest carriers - AAdvantage program changes - Product Segmentation - Repurchased 85.1 million shares for $3.6 billion - Paid a total of $278 million in quarterly dividends *Profit and pre-tax margin exclude net special charges. Please refer to the Company s GAAP to Non-GAAP reconciliation in the appendix. 5
6 Further Integration Items, 2016 and Beyond Single Flight Operating System - Aircraft and crews become interchangeable - Requires extensive data migration, coding and testing Labor Agreements - Single seniority list for pilots - Combined contracts for ramp and mechanic employees Livery & Uniforms - Entire fleet will be repainted by New uniforms will provide a consistent look across the airline Customer Service Alignment and HR - Consistent staffing policies across the network - New HR tools eliminate duplication Tech Ops - Currently separate labor groups and multiple systems - Ultimately will have one labor group using a unified interface 6
7 Fleet Replacement Plan American is making significant investments in its fleet Beyond 2018 Total A320 Family / Neo A B / Max B ER B787 Family Mainline Total CRJ CRJ E Regional Total Note: New aircraft deliveries by type. Regional inductions include aircraft owned by third party operators 7
8 Fleet Replacement Plan Resulting in one of the youngest and most fuel efficient fleets in the industry Average Fleet Age yrs 16.7 yrs Years yrs 13.3 yrs 14.7 yrs 12.1 yrs 10.4 yrs 9.6 yrs E 2017E Source: SEC Form 10-K and Ascend Fleets data base; projected data based on internal Industry fleet plan outlook estimates 8
9 American s Positioning Within the U.S. Industry 9
10 Hub & Spoke Network Model is Complex 10
11 World Class Global Network 11
12 Robert W. Baker Operations Center
13 New Integrated Operations Center - DFW Two stories 149,000 Square Feet Nearly 1,500 Employees EF3 ( mph) 13
14 What is the IOC? 14
15 IOC Command Center Manage Events Teleconference System Satellite TV Secure Communications 15
16 Why an IOC? Centralized unit to coordinate and monitor operations to ensure business requirements are met on a system wide basis Safety Customer Service (Schedule Dependability) Communications (Operational Information) Operating Policies Operational Efficiencies 16
17 Why an IOC (continued) Federal Aviation regulations require Operational Control IOC fulfills that role Airlines conduct operational control by making decisions and performing actions that are necessary to operate flights safely and in compliance with regulations Provides a centralized point of contact for all safety of flight and customer relations concerns 17
18 What is the IOC? ATVC Coord. MTX Operations Dispatch Ops. Coord. Flight Planning IOC SCSM Crew Scheduling WSI WX Service Weight & Balance Planning Flight Service 18
19 Flight Management
20 Flight Management Dispatch creates flight plans and flight releases for all flights Route of flight Fuel Requirements Maximum Payload Calculates Weight and Balance Limitations Monitors and updates flight progress Route changes ATC Conditions Changing weather conditions including weather hazards Flight planning system optimizes for least cost Cost of fuel Cost of time Cost of being late 20
21 AA Flight Dispatch Monitors a flight s operating environment from origin to destination. Updates and provides en route and destination weather to the pilot. Advises down line stations of a flight delay Coordinates and implements plans to handle off Irregular Operations (IROPS) in AA system. 21
22 Dispatch Jointly responsible with Captain for safety of flight operations Ensures we have a serviceable aircraft, crew, and fuel load Determines route of flight and issues the dispatch release / flight plan 22
23 Dispatch Automation Fusion (Monitors flights and weather on a map) Dispatch Auto/flight Monitor (Flight following tool) Diversion Tracker (Diversion Recovery Tool) Taxi Alert Monitor (Monitors 3hr tarmac delays) Operations Performance Tools (TO/LDG Wt. Corrections) 23
24 Fusion 3 s Icing PIREP 4 s Icing SIGMEC TSTM Turb. PIREP 24
25 Surface Movement 25
26 Operations Coordinators Coordinates changes to aircraft routing Primary contact for changes to assignment of flight crews to specific flights Coordinates extra flying operations Manages Irregular Operations (IROPS) and diversions 26
27 TAPS (Turbulence Auto PIREP System) 27
28 ATC at the IOC 28
29 Air Traffic Systems ATC Coordinators Interface with ATCSCC (FAA command center) Interface with Air Route Traffic Control Centers Coordinates ATC-Airline operating interdependencies Hub and major airport ATC issues Traffic Situation Display TSD-C 29
30 Command Center (ATCSCC) Conducts national planning telecons every 2 hours Ad Hoc telecons as needed: GDP, GS, Route issues, AFP (airspace flow program) etc Security events / issues / VIP TFRs Conducts post event reviews of specific events as requested by FAA management or industry 30
31 CDM Collaborative Decision Making Industry, academia, ATC, NBAA, US Military and NAVCANADA participants Provide input on daily tactical decision making (FAA has final decision authority) Joint workgroups to set goals for further ATM developments in technology and procedures 31
32 Public Site 32
33 DFW East Playbook 33
34 FAA Playbook Routing 34
35 Transcon Playbook - ELP 35
36 Air Traffic Congestion United States 36
37 The Challenges of the Northeast 37
38 NE Population Density Map 38
39 NE Airspace Constraints 39
40 The Swap Problem The airspace structure in the Northeast is the most dense in the world. PHL sits between the New York Metro and the DC Metos. Airways are one way in the Northeast, with most arrival routes dedicated to specific traffic flows. Initial departure routes are shared in New York. PHL initial departure routes are dedicated. When weather causes arrival traffic to deviate off route departure routes are immediately impacted and often closed as a result. 40
41 NE Swap Event Aug. 20,
42 NY Center Swap Forecast Impact Map 42
43 NE Corridor Int l Forecast Map 43
44 OIS Aug. 20,
45 NEXTGEN: Where we are and where we re going
46 DCL - Overview 46
47 DCL (continued) 47
48 What is TFDM 48
49 TFDM (cont d) 49
50 Airspace Technology Demonstration 50
51 RNAV/RNP & PBN Benefits RNAV and RNP procedures benefit airlines, employees and our customers through: Increased safety Lateral and vertical flight guidance from and to every runway Increased efficiency Reduced flight miles Reduced flight time Reduced fuel burn Environmental benefits Reduced carbon emissions Reduced noise This is a win win win situation 51
52 RNAV/RNP & PBN Benefits (cont d) 52
53 RNP Benefits For Terrain Challenged 53
54 Tailored Arrivals Key Features 54
55 Tailored Arrivals Noise Benefits 55
56 Thank You
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