Albany, NY (October 22, 2002) - - - American Eagle today announced it will upgrade its fleet of aircraft serving Albany International Airport from turboprop aircraft to all regional jets, effective January 2. American Eagle believes the conversion to all regional jets will offer improved service for passengers traveling through Albany International Airport.

As a result of the announcement, American Eagle will phase out the Saab turboprop aircraft maintenance facility located on Sicker Road at the north end of the Airport. The decision by American Eagle to phase out this facility will result in the loss of 67 jobs. However, American Eagle has indicated that employees at its maintenance facility will be offered the opportunity to consider other open maintenance positions within the Eagle system.

"These are extremely difficult times for the airline industry and while we are disappointed in American Eagle's decision to phase out Albany's turbo-prop maintenance facility, our immediate concern is for the employees and their families," said Rev. Michael A. Farano, Chairman of the Albany County Airport Authority.

The Airport Authority had been in discussions with American Eagle and had offered to purchase the maintenance facility and lease it back to the airline to provide an infusion of cash and a home for a Regional Jet maintenance facility in Albany. American Eagle is owned by AMR, the parent company of American Airlines.

It is anticipated the maintenance facility, which is owned by American Eagle, may become available for other airlines. The facility, with its immediate access to the airport presents many opportunities for the Airport Authority to improve and expand facilities for the airlines and tenants that serve the Airport.

On November 1st, American Eagle will begin offering five daily Regional Jet flights to Chicago-O'Hare, replacing the three flights which are now offered by American Airlines. By January, American Eagle will offer two Regional Jet flights to New York-Kennedy, a reduction from the four current daily flights.

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