American Eagle Airlines and the Air Line Pilots Association (ALPA) have reached an agreement in principle that guarantees the placement of 60 Embraer 175 aircraft with the regional carrier.
The 10-year agreement guarantees the aircraft as well as American Airlines Group’s options for 90 additional E-175s, freezes pilot pay until January 2018 and offers improved flow through options for pilots who want to move to the mainline carrier, according to an ALPA American Eagle master executive council newsletter on 10 January.
“The company chose to put us in this onerous position, however we will work through this together,” says Bill Sprague, chairman of the American Eagle chapter at the union, in the newsletter. “This agreement will live or die on its merits alone.”
He does not provide a timeline for voting on the agreement.
“Much work and discussion went into creating this agreement in principle that would satisfy all groups involved and should this be ratified, the future of our company has never looked brighter,” says Pedro Fabregas, chief executive of American Eagle, in an employee newsletter.
American, which owns American Eagle, will use the E-175s to replace 50-seat regional jet aircraft, he says. The rate of replacement has yet to be disclosed.
The Fort Worth, Texas-based mainline carrier ordered the E-175s as well as 30 Bombardier CRJ900 aircraft in December 2013. The CRJ900s will be placed with PSA Airlines, another wholly-owned regional carrier that American inherited as part of its merger with US Airways.
American has options for 40 more CRJ900s.
ALPA rejected an offer from American to place the Bombardier aircraft at American Eagle in exchange for a lower B pay scale in September 2013.