Scope clause proposals unchanged in AMR’s last offer to American Eagle pilots

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AMR's latest offer to American Eagle's regional jet and turboprop pilots contains no changes to management's original proposals on scope clause changes.

The term sheet submitted by AMR to the Air Line Pilots Association on 13 July is the latest step in a four-month negotiating process, but is likely to be voided by events.

AMR, the parent of American Airlines and American Eagle, has notified the three unions representing pilots, flight attendants and mechanics for its regional jet subsidiary that it will ask the court to throw out their contracts by the end of the month under the section 1113 process.

American Airlines unions faced a similar threat last month, but the leadership of the Allied Pilots Association (APA) agreed at nearly the last minute to approve AMR's best offer rather than accept the result of the 1113 procedure. The APA's membership must still vote next month on whether to ratify the tentative agreement.

AMR says it hopes to achieve a similar negotiated settlement with American Eagle's unions despite its last legal manoeuvre.

An updated term sheet on 13 July, which was obtained by Flightglobal, softens but does not significantly alter management's original proposal.

The latest offer retains a 5% pay cut for all American Eagle captains, which was one of the biggest points of disagreement with ALPA. However, AMR added lines clarifying that captains will receive a 3% increase in base pay in three years and another 1% after four years.

A key part of the recovery strategy for American Airlines and American Eagle is the ability to fly larger regional jets under 100 seats.

For American Eagle, this means American Eagle will want to have more freedom to operate up to 76-seat jets under the AMR's term sheet offers. The existing band limits flying in the same category to between 60 and 70 seats.

Completing the labour deals for American Eagle is likely only a small step in AMR's emergence from bankruptcy.

In May, American Eagle chief executive Dan Garton says he expects that AMR will resume efforts to spin-off the regional airline after it emerges from bankruptcy.