This Day On The Street
Continue to site
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

American Eagle President: Forget Planes, We'll Grow Ground Handling Business

DALLAS (TheStreet) -- American Eagle President Pedro Fabregas said he is disappointed that the airline's pilot leaders voted not to send a tentative contract agreement out for a vote, but American Eagle won't shut down even though it has apparently lost the possibility of gaining up to 150 new aircraft.

The carrier will look increasingly to ground handling work for its future, Fabregas wrote in a letter sent Thursday to the 3,000 pilots at American Eagle, the regional airline partner of American Airlines (AAL - Get Report).

The master executive council of the American Eagle Air Line Pilots Association American Eagle chapter said late Wednesday that it had rejected the tentative agreement and expects the carrier to pursue liquidation.

But in his letter, Fabregas wrote that the "MEC's statement asking us to provide a timetable for the company's 'liquidation' is not something we can provide as we are not planning to shut down the airline.

"Our ground handling operation continues to thrive and we have added new business and employees there at a rapid pace," Fabregas said. Also, American Eagle "will continue to work toward making our flying operation as competitive as possible while addressing the downsizing of our fleet and related staffing in the coming years."

Must Read: US Airways Cancels All Thursday Arrivals in Charlotte

Fabregas said American informed him it will begin looking for another carrier to operate the 60 Embraer 175s it has ordered and the 90 it may order. "American has held off on making this decision as long as possible, as they wanted to give our pilots the chance to do this flying," he said. "American can't wait any longer and will begin these efforts immediately."

He noted that American Eagle began negotiating the tentative agreement in December, that the MEC agreed to an agreement in principle on Jan. 10, and that the parties then worked to translate the agreement into contract terms.

The MEC's "decision to deny our pilots a vote means the loss of what would have been a very important opportunity for each individual pilot, our company and all the people who work here," he said.

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAL $34.69 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs