pilot union negotiators have warned
American Eagle pilots that pilot costs will have to come down if American Eagle is to keep its contract to fly for
American Airlines. American Airlines and parent AMR are in the process of spinning off American Eagle as a separate company owned by AMR shareholders. American has been open in saying that the deal eventually will allow it to buy capacity from the lowest bidder, whether it's American Eagle or someone else.
In the update from the Air Line Pilots Association negotiating committee, the committee says it is trying to get a contract that provides job security for pilots and an opportunity for American Eagle to grow, as American Eagle discusses an "air services agreement" [ASA] with American.
But, the negotiating committee added:
"Now let's not dance around what this means: a longer-term and more robust ASA will not come to us for free. AA is demanding that Eagle guarantee market-rate feed in exchange for guaranteed flying. "Because the pilots make up the majority of Eagle's current cost disparity, the ability to guarantee market-rate feed falls largely within the pilots' control. Said plainly, the company is demanding concessions in return for the job security we desire.
"With this in mind, the Negotiating Committee has some ideas for ways to meet the company's stated objectives while minimizing the impact on the pilots. This does not mean, however, that a concession-free deal is achievable, and there is no point in pretending otherwise.
"What remains to be seen is whether we are able to reach a deal that will capture an appropriate level of pilot job security at a price worth paying."