AMR Proprietary and Confidential FAA Compliance Training

AMR Proprietary and Confidential 0-1 Training Modules  This training consists of four modules –Overview of Regulations, Purchasing Roles and Responsibilities –FAA Interaction –New Parts Sourcing –Repair Sourcing Sourcing Process (MRO, Parts, Services) Substantial Maintenance (Repair of A/C Parts) Non-Substantial Maintenance & New Parts Purchase TULAFW Services (On Call Maintenance, Fuel) Non-A/C Parts (Safety Eqpt.) A/C Parts (Repair/New Parts) TULAFWHDQ

AMR Proprietary and Confidential Module-1 (FAA-101) Overview of Regulations, Purchasing Roles and Responsibilities

AMR Proprietary and Confidential 1-1 Regulations for AA’s Operations  American Airlines operations regulated under US Federal Regulations –Title 14 of Code of Federal Regulations (14 CFR) covers Aeronautics and Space 14 CFR also known as Federal Aviation Regulations (FAR) –FAR part 121 covers Domestic Operations (mostly Commercial) –FAR part 145 covers Repair Stations  American Airlines has established Processes and Procedures to comply with the Federal Regulations –These processes and procedures are maintained in various Manuals –Manuals maintained in the American Airlines Manual System (AAMS) –Example of some of the manuals under the AAMS: General Manual General Procedures Manual (GPM) Engineering Procedures Manual (EPM) Maintenance Check Manual (MCM) Fuelling Manual

AMR Proprietary and Confidential 1-2 The GPM and Purchasing  Out of the 33 Chapters on the GPM, Purchasing is cited in 14…  Following are some of AA’s operations outlined in the GPM where Purchasing is featured: –Administration and Operating Procedures – Chapter 2 –Materials Handling – Chapter 12 –Parts Handling Procedures – Chapter 20 –Materials Handling (M&E Maintenance Base) - Chapter 27 –Maintenance Programs - Chapter 16  Where to find more –M&E Website, GPM search by Purchasing

AMR Proprietary and Confidential 1-3 Some GPM Extracts ….  Chapter 02: Administration and Operating Procedures APPROVED SUPPLIERS REF. FAR , , ,  1. The Managing Director, Purchasing has overall authority to establish and modify the policies, procedures, instructions and information for the Approved Supplier process. See Purchasing Repair Sourcing Procedure.  2. The Managing Director, Corporate Safety-Operations and Airworthiness has overall authority for ensuring the Audit Element of CASS is properly established, implemented and maintained as per its role in the Approved Supplier process. See CASS Manual Sec  PROCEDURES  1. Support for services other than aircraft major maintenance checks/modifications: –a. The listing of approved suppliers, i.e., repair/rebuild, surplus, manufacturers, distributors, oxygen, engine lease, contract maintenance, and fuel suppliers, etc., can be accessed in the FOCUS system. Also, see paragraph D for GPM sections which provide additional details. –b. The listing will be maintained by the Manager, CASS Surveillance - Stations. It shall be updated upon completion of an AA supplier audit and monthly with the CASE database. The listing is electronic and current on-line. Only the Manager, CASS Surveillance - Stations or his designated representative is authorized to input changes to the list.

AMR Proprietary and Confidential 1-4 … more GPM Extracts ….  Chapter 16: Maintenance Program OUTSOURCE MAINTENANCE REF (a)/ (a)/ (a)  1. As a Part 121 Air Carrier, American Airlines, Inc. may make arrangements with other organizations (Outsource Maintenance Providers) for the performance of any maintenance, preventive maintenance or alterations. However, American Airlines retains the responsibility for Airworthiness. See GPM Sec GPM Sec  2. American Airlines, Inc. will ensure that all elements of its Maintenance Program and Manual System are complied with by all Outsource Maintenance providers.  3. American Airlines, Inc. will ensure the Outsource Maintenance Provider has: –a. The capability to do the work; –b. An organization structured to do the work; –c. Competent, trained personnel to do the work. –d. Relevant and current technical and administrative material from American’s maintenance program and manuals for the work; –e. Adequate facilities and equipment to do the work; –f. The ability to transfer and receive data and information necessary to support AAL’s CAMP. –g. A current listing of individuals trained, qualified and authorized by AAL to perform on-call maintenance and required inspections (if required and authorized by AA).  4. American Airlines, Inc. must insure that the Outsource Maintenance provider’s Quality Control System meets AAL’s Quality Control System.  5. American Airlines, Inc. must provide instructions and direction for the outsourced maintenance to the Outsource Maintenance Provider.  6. American Airlines, Inc. must be aware of any third party contracting and provide instructions and direction of that maintenance. This also includes the subcontracting of labor that supplements the outsource providers labor.

AMR Proprietary and Confidential 1-5 … and more GPM Extracts ….  Chapter 14: Winter Operations REF Manager Field Purchasing a. Responsibilities: (1) Acquisition of services in support of internal customer groups designated to the Airport Operations group. (2) Authority to procure/negotiate on-call and routine maintenance agreements for aircraft deicing services at stations where AA personnel are not available. (3) Authority to manage the spending for commodities within airport operations area, which includes ground support equipment and parts. (4) Ensure deicing fluid storage tanks, pumps and metering equipment are manufactured in accordance with specifications established by LOS Deice Engineering. (5) Monitor and manage supplier’s performance. (6) Manage quality processes designed to enhance supplier performance. b. Interface: (1) May discuss issues involving Winter Operations with LOS Deice Engineering via telephone, meetings, or any other form of communication available.

AMR Proprietary and Confidential 1-6 … and some quotes of our responsibilities….  Purchasing personnel in charge of procuring aircraft parts or services from Substantial Maintenance suppliers shall notify CASS prior to such action / Chapter 2 Admin & Operating proc. Approved Suppliers  In the event that work provided by a Substantial Maintenance Provider changes, Purchasing Personnel in charge of procuring aircraft parts or services from the Substantial Maintenance Provider shall notify CASS of change in the Substantial Maintenance Provider’s work. / Chapter 2 Admin & Operating proc. Approved Suppliers  The Chemical Review Board will consist of representatives from Materials and Manufacturing Engineering (M&ME), Purchasing (Commodity Manager), Inventory Management (chemical analyst), HDQ/AFW/TUL/MCI Environmental, TUL-Safety, TUL/AFW/MCI Industrial Hygiene, TUL Hazardous Materials. Contact M&ME or Safety for names of individuals on the board. / Chapter 12 Material Handling  Purchasing must: a. Must purchase only respirator equipment listed in this section or otherwise approved by the AA Safety Department. / Chapter 13 Safety

AMR Proprietary and Confidential Why this training  All aspects of AA’s operations need to follow the different parts of the Federal Aviation Regulations  Purchasing Department’s procedures guided by various AA manuals –Purchasing’s procedures documented in various internal documents  This training establishes awareness of Purchasing personnel to the various regulations, guidelines and procedures –To ensure compliance in our day-to-day activities –To meet training requirements –To be able to self-audit to ensure continuing compliance 1-7