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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

American Eagle Pilots Overwhelmingly Reject Contract Proposal

DALLAS (TheStreet) -- Pilots at American Eagle, the regional partner of American Airlines (AAL - Get Report), have overwhelmingly rejected a contract proposal by a wide margin

About 70% of voters opposed the contract, with 92% of the approximately 3,000 Eagle pilots voting, said the Eagle chapter of the Air Line Pilots Association. 

Last month, union leaders voted to reject the proposed agreement, which would have frozen pay rates and guaranteed new aircraft for the airline. Afterwards, some union members sought a vote by all the pilots.

"The Eagle pilots made a clear choice today, and it was not an easy one," said Bill Sprague, chairman of the Eagle chapter, in a prepared statement. "Despite threats from (American) management that they would seek other express carriers to conduct our flying, today's vote demonstrates that the demands for contract concessions were not acceptable."

In a letter to employees following the vote, Eagle president Pedro Fabregas said he was disappointed by the outcome but pleased that the pilots had the opportunity to vote.

"Now it the time for us to collectively accept our pilots' decision and move forward," Fabregas wrote. "We will operate our currently fleet in accordance with our business plan. ...Our fleet will downside as smaller, less-efficient aircraft, such as the Embreaer 140s, are scheduled for retirement."

Fabregas noted that American has said it will award flying on newer Embraer 175 aircraft to one or more competing regional carriers. "The opportunity for us to fly these aircraft has passed and we need to focus on doing our best with the aircraft we have," he said.

The union said the proposed contract changes included a combination of pay freezes, reduced per diem payment and increased health care costs, in exchange for a promise to enhance the Eagle fleet and provide improved opportunities for pilots to move on to mainline American Airlines. 

The contract proposal followed the implementation of a bankruptcy contract which the union said involved $43 million of concessions. That contract will remain in place.

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 $49.35 -0.76%
AAPL $130.42 1.26%
FB $80.41 1.07%
GOOG $555.48 2.13%
TSLA $207.19 1.68%

Markets

DOW 18,214.42 -10.15 -0.06%
S&P 500 2,110.74 -3.12 -0.15%
NASDAQ 4,987.89 +20.7530 0.42%

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