This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

American Eagle Pilot Leaders Reject Deal and Look to Shutdown


DALLAS (TheStreet) -- Leaders of the pilots union at American Eagle, the regional airline partner of American Airlines (AAL - Get Report), have voted to reject a proposed agreement that would have frozen pay rates and guaranteed new aircraft for the airline.

The master executive council of the American Eagle chapter of the Air Line Pilots Association voted Wednesday to reject the proposal without sending it to the airline's 3,000 pilots for a vote.

"The pilots negotiated and signed a concessionary agreement during the recent bankruptcy, and management asked us soon after AAG exited bankruptcy for additional, significant concessions," said William Sprague, chairman of the union, in a prepared statement.

"Our pilots decided they were not willing to work for less than the company is already paying our peers," Sprague said. "We will now begin the process of assisting our pilots in identifying alternative career options within the industry."

In its statement, the union said company representatives had "made it clear that should the pilots and management fail to reach a deal, the company will not entertain future negotiations."

 "Negotiators for AAG also stated numerous times that if a deal fails to be ratified, American Eagle Airlines will be downsized continually until it is small enough to liquidate," the union said.

 Now ALPA  "will be working with the American Eagle pilots to help them find placement with other airlines," the union said.  "ALPA representatives will ask management for their timetable regarding the liquidation of American Eagle. "

It appeared that the union may be challenging management to make good on its threats at a time when it is difficult to find pilots willing to work for the low starting salaries that regional airlines pay.

Written by Ted Reed in Charlotte, N.C.
To contact this writer, click here.
Follow @tedreednc

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAL $52.66 2.72%
AAPL $123.25 -0.80%
FB $83.30 0.35%
GOOG $548.34 -1.23%
TSLA $185.00 -2.84%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs