exv10w16

Exhibit 10.16

November 29, 2005

Mr. Edward A. Brennan
400 North Michigan Avenue
Suite 400
Chicago, IL 60611

Dear Ed:

This will confirm the following agreement relating to the deferral of your director’s fees in 2006.

1. All director’s fees and retainers (“Fees”) payable to you in connection with your service on the boards of directors (including committees of such boards) of AMR Corporation and American Airlines, Inc. for the period January 1, 2006 through the date of the annual meeting of AMR Corporation, will be deferred and paid to you in accordance with this letter agreement.

2. Fees will be converted to Stock Equivalent Units in accordance with the Directors’ Stock Equivalent Purchase Plan, a copy of which is attached hereto as Exhibit A (the “Plan”).

3. When you cease to be a Director of AMR Corporation (the “Departure Date”), the Stock Equivalent Units accrued in 2006 pursuant to the Plan will be paid to you as follows:

	a)		20% of such units on the 30^th business day following the Departure Date;

	b)		20% of such units on the 1^st anniversary of the Departure Date;

	c)		20% of such units on the 2^nd anniversary of the Departure Date;

	d)		20% of such units on the 3^rd anniversary of the Departure Date;

	e)		20% of such units on the 4^th anniversary of the Departure Date;

The payment will be calculated by multiplying the number of Stock Equivalent Units to be paid by the arithmetic mean of the high and low of AMR stock during the month immediately preceding the payment date.

4. In the event of your death, the number of Stock Equivalent Units as of your date of death will be multiplied by the fair market value of AMR stock during the calendar month immediately preceding your death, and the amount paid to Lois Brennan. The payment contemplated by this paragraph 4 will be made on the 30^th business day following the date of your death.