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In full and final settlement of all issues and claims arising out of the above grievance,
American Eagle Airlines, Inc. ("Eagle") and the Air Line Pilots Association, International
("ALPA or "the Association") hereby agree to the following, with the understanding that
this Grievance Settlement Agreement ("this Grievance Settlement Agreement") is not a
precedent for any other matter between them, nor is it evidence that can be referred to
by anyone in a future case concerning interpretation or application of the Eagle-ALPA
collective bargaining agreement except as to the terms of this Grievance Settlement
Agreement.:
1. Preferential Hiring Program For Eagle Pilots At American Airlines.
As a sign of its respect for the professionalism and career interests of the Eagle pilots
represented by ALPA and in order to implement this Grievance Settlement Agreement,
Eagle has requested, and American Airlines, Inc. ("American" or "AA) has agreed in a
separate Agreement, that American will provide preferential hiring to Eagle pilots who
are on the Eagle Pilots Seniority List on October 11, 201 1 ("Protected Pilots") for pilot
employment opportunities at American in accordance with the terms of that separate
Agreement. That separate Agreement further provides that Eagle and ALPA shall
agree upon the terms, process and sequence by which Eagle pilots will be eligible for
the opportunities to be made available pursuant to that separate Agreement. Such
terms are set forth in Section 3 below.
2. No Diminution of Prior Rights.
a. Pre-Existing Rights. ltis the intent of the parties that the creation of the
Preferential Hiring Program set forth herein shall not in any respect diminish or
otherwise impact the pre-existing rights and privileges of pilots already employed
by American Airlines pursuant to the applicable collective bargaining agreement,
including recall rights for furloughed pilots on the American Airlines System
Seniority List. It is further the intent of the parties that the creation of the
Preferential Hiring Program set forth herein shall not in any respect diminish or
otherwise impact the rights and privileges of either (i) the 240 Eagle pilots who
currently possess AA pilot seniority numbers as a result of Letter 3, Supplement
W (the "240 Pilots"), or (ii) the Eagle pilots eligible for the 824 AA pilot jobs that
will be offered to Eagle pilots pursuant to the remedy issued by Arbitrator Nicolau
in grievance number FLO-0108 (the "824 Positions").
b. Insufficient Pilots under subparagraph a. The parties agree that when the
list of pilots referred to in clauses (i) and (ii) of subparagraph 2.a. above has been
exhausted, then the next AA new hire pilot positions made available to Eagle
pilots pursuant to this Grievance Settlement Agreement shall be offered as they
become available at AA to other Protected Pilots in seniority order. Such
positions offered under the preceding sentence shall be considered as "positions
offered under this Grievance Settlement Agreement."
c. Waiver of Training Freeze for Certain Eagle Pilots Eligible for the 824
Positions. In the event that a training freeze or seat lock results in a situation
where there are an insufficient number of Eagle Captains who have satisfied
such a training freeze or seat lock who are eligible and willing to accept one of
the 824 Positions, then Eagle agrees that it will waive such provision to the
extent necessary to permit Eagle Captains to fill the minimum required number of
seats in an AA training class as part of the 824 Positions.
3. Procedures For Eagle Pilot Advancement to Opportunities At American.
a. All Eagle Pilots As of October 11, 2011 Are Eligible. Each pilot on the
Eagle Pilots' System Seniority List as of October 11, 201 1 shall be eligible to be
offered an opportunity for a pilot position at AA as such positions become
available pursuant to the terms of American's separate Agreement with Eagle
and ALPA. An eligible pilot whose employment with Eagle terminates shall no
longer be an eligible pilot, provided that any eligible pilot who is involuntarily
terminated shall be reinstated to the list of eligible pilots in the event that such
pilot's termination is reversed pursuant to the grievance and arbitration provisions
of the Eagle-ALPA collective bargaining agreement.
b. Offers In Seniority Order. When American is hiring new hire pilots, positions
in new hire pilot training classes at American shall be made available to eligible
Eagle pilots who are in active status or on furlough status at the time that the
offer is made. Pilots on authorized leaves of absence must return to active
service at Eagle in order to be eligible to receive an offer of a position in a new
hire pilot training class, except as provided in paragraph 3.f. below. Such offers
will be made in the order of pilot seniority at Eagle. For purposes of this
Grievance Settlement Agreement, the words "new hire pilots" mean pilots hired
off the street, (i.e., not including pilots arriving by merger or initial training classes
for pilots training onto the AA certificate from a merged carrier).
c. Standing Expression of Intent. Eagle will publish and maintain a website on
which each Eagle pilot may affirmatively state on a standing basis that he or she
is willing to accept an opportunity for a pilot position at AA offered under the
Preferential Hiring Program. Each Eagle pilot who receives an offer of a position
in an AA new hire class will have up until sixty (60) days prior to the
commencement of the AA new hire class to accept or decline the pilot position
offered. An Eagle pilot who has previously declined an offer from AA (including
an Eagle pilot who has declined such an offer as part of the 240 Pilots or the 824
Positions) shall thereafter remain eligible to make a standing expression of intent
and to receive offers for subsequent opportunities for a pilot position at AA in
Eagle seniority order until the most junior pilot remaining on the list of eligible
Eagle pilots has received an offer to join a new hire class at American, provided
that pilots on authorized leave on such date shall have the additional time
provided by subparagraph 3.f below.
d. Release By Eagle. When AA is hiring, Eagle shall release a minimum of
twenty-five (25) Eagle pilots per month who have accepted pilot positions at AA
under the Preferential Hiring Program to fill AA new hire positions, provided that,
if American becomes obligated to offer sufficient pilot positions to fill a minimum
of 50% of each new hire class pursuant to paragraph 4 of the separate
Agreement, then Eagle shall use its best efforts to release a sufficient number of
pilots per month to fill such classes, but in no event less than 25.
e. Acceptance of Employment at American Terminates Pilot Status At
Eagle. Eagle and ALPA agree that an Eagle pilot who accepts a position in an
AA pilot training class shall be treated as having terminated his status as an
Eagle pilot as of the day he enters class at AA.
f. Termination of Preferential Hiring Program. On the date that the most
junior pilot remaining on the list of eligible Eagle pilots receives an offer of a
position in an AA new hire class, the Preferential Hiring Program will terminate as
to all Protected Pilots, except that Protected Pilots who are on leave on the date
of termination of Preferential Hiring Program will be offered one final opportunity
to return to Eagle from leave in order to accept an offer under the Preferential
Hiring Program, with such option to return to be exercised within one hundred
twenty (120) calendar days of the date of termination specified above.
4. Successorship.
This Grievance Settlement Agreement shall be binding on Eagle and ALPA and on any
Successor or Assign of Eagle or ALPA, unless or until changed in accordance with the
provisions of the Railway Labor Act, as amended. For the purposes of this Grievance
Settlement Agreement (a) as to Eagle, a Successor or Assign shall be defined as an
entity that acquires all or substantially all of the assets of Eagle, or that acquires control
of Eagle and (b) "control" or a "controlling interest" means ownership of securities that
constitute andlor are exchangeable into, exercisable for or convertible into more than
fifly percent (50%) of another entity's common stock or of the voting power of the other
entity's securities entitled to vote for the other entity's governing board, or the power to
elect a majority of the other entity's governing board. Any Successor or Assign shall, as
a condition to entering into an agreement that is intended to or will result in a transaction
that will establish a Successor or Assign, be required to commit in writing to adhere to
the provisions of this Grievance Settlement Agreement. A copy of such commitment
shall be provided to the Association no later than the next day after it has been signed.
5. Scope Clause Changes In Event Eagle Disaffiliates.
Eagle and ALPA have agreed to modifications to Section 1, Scope as set forth in the
attached Scope Letter of Agreement that, subject to ALPA ratification, will become
effective in the event, and upon the date, that Eagle is no longer under the control of
AMR.
6. Withdrawal of Grievance.
Upon execution of this Grievance Settlement Agreement by Eagle, and of the separate
Agreement between Eagle, ALPA and American referenced in paragraph 1 above, the
Association shall withdraw grievance number MEC-0411 with prejudice on all issues
presented therein, i.e., the transfer of Operating Assets currently owned, leased or
operated by Eagle from Eagle to American and uncovering of Eagle flying associated
with those Operating Assets. Eagle and ALPA will jointly advise Arbitrator Nicolau that
a settlement has been reached and that a decision will not be necessary in this case.
As part of the withdrawal and settlement of grievance number MEC 041 1, the parties
agree that ownership or leasehold interests in all Operating Assets currently owned,
leased or operated by Eagle may be transferred to American (or its designee). For
purposes of this paragraph, the term "Operating Assets" shall mean any aircraft, route,
slot, or gate used in Eagle flight operations and the term "flight operations" shall mean
the operation of aircraft by Eagle in revenue service or in support of such revenue
service.
7. Contingencies.
Both Eagle and ALPA are defendants in litigation in which certain pilots challenge the
validity of the Nicolau Remedy Award in FLO-0108 referenced in Paragraph 2 above.
Both Eagle and ALPA believe that the Award is proper and well-founded in fact and in
law. Nonetheless, in an abundance of caution, the parties believe it prudent to address
the consequences for this Grievance Settlement Agreement in the event that the Award
is vacated. In that event, the Eagle pilots who could have held the 824 positions
identified in that Award (as well as any former Eagle pilots with AA seniority numbers
who lose their positions at AA as a result of any vacatur of the Award) (collectively the
"affected pilots") shall be offered an opportunity for a position in an AA new hire training
class. First, affected pilots with an AA seniority number shall be offered positions in the
order of their seniority at AA. Then, all remaining affected pilots shall be offered an
opportunity for a position in an AA new hire training class in the order of their Eagle
seniority, along with all other Eagle pilots.
8. Dispute Resolution. All disputes concerning the interpretation or application of this
~rievanceS ettlement ~ ~ r e e m e nintc,l uding any and all disputes about the eligibility or
seauence of selection of an Eaale uilot for an ouuortunitv to enter training at American.
shall be determined through thegrievance and arbitration procedures contained in the
Eagle-ALPA Collective Bargaining Agreement.
Dated this 19th day of July, 201 1.
For American Eagle Airlines, Inc For Air Line Pilots Association
Brian Sweep
Contract Compliance Chairman

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I think his point is that it's non-contractual. Just a promise from mgmt. I basically laughed it off when it was first announced, so I'm not sure what, if anything, we have on it in writing.

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