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American Eagle Pilots Overwhelmingly Reject Contract Proposal

Tickers in this article: AAL

DALLAS (TheStreet) -- Pilots at American Eagle, the regional partner of American Airlines , 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."

The union said the 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.

Written by Ted Reed in Charlotte, N.C.

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