Aircraft purchase agreement rejected by American Eagle pilots

American Eagle pilots have filed a formal objection to the capacity purchase agreement between American Airlines and Republic Airways. The pilots are represented by the Air Line Pilots Association (ALPA).

Under the proposed agreement, Republic would operate 53 Embraer E-175 aircraft under the American Eagle brand with service to start in June 2013 and increase through 2015. The agreement would extend through 2027.

According to ALPA, the proposed agreement would “severely divert the flying of large regional jets to a competitor and would needlessly undermine the value of American Eagle, threatening the livelihood of Eagle’s pilots and other employees at the airline.”

American Eagle, a wholly owned subsidiary of AMR Corp., has provided the substantial majority of regional flying for American Airlines, which is also an AMR subsidiary. AMR Corp. is in Chapter 11 bankruptcy protection.

“The Eagle pilots negotiated and approved a labor agreement that provides Eagle with market-competitive labor rates for the next eight years,” ALPA American Eagle chairman Tony Gutierrez said. “This potential deal signifies AMR’s huge and unnecessary commitment to a third-party company at the expense of its own employees. If this transaction is approved, it is unclear whether a viable number of large regional jet opportunities for American would remain available to Eagle,” he said.

In December, the bankruptcy court approved a long-term collective bargaining agreement between ALPA and American Eagle that met cost-savings targets that Eagle management and AMR represented as necessary for Eagle to position itself as competitive in the regional airline industry.

(Linda Blachly - ATWOnline News)