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Latest News - July 2013

July 16, 2013
American Eagle pilots say no to US Airways proposal
Source: Star Telegram
By: Andrea Ahles

American Eagle pilots union representatives decided against considering a proposal from US Airways management that would pay new pilot hires a lower wage than current pilots at the regional carrier, owned by AMR Corp.

With AMR preparing to merge with US Airways, the union has talking with US Airways management about possible contract concessions. The Air Line Pilots Association, which represents the Eagle pilots, said US Airways management has told the union it will not place the next large order of regional jets for Eagle’s fleet without a cost structure in line with competitors.

The carrier declined to comment on the talks with the union.

In a motion passed by the union’s Eagle representatives Monday, union leadership declared that the “concept of a B scale is unacceptable, and thus this document is unacceptable and shall not be sent for a pilot ratification.” Further, it said, union leadership “hereby declines any further negotiations with a reference to a B scale.”

Before it filed for bankruptcy, AMR discussed selling or divesting Eagle, but those plans were put on hold. US Airways CEO Doug Parker, who will be CEO after the merger, has said he has not made any decision about Eagle’s future.

However, on Monday the company said Pedro Fabregas will become president of Eagle with the merger. He’s currently head of customer service at Eagle and succeeds Dan Garton, who had said he would leave the carrier.

Separately, the midlevel management ranks at the combined American Airlines-US Airways are starting to fill out, even though the merger isn't expected to close until fall.

On Monday, US Airways Chief Operating Officer Robert Isom named several senior vice presidents and vice presidents to oversee the operations at the carriers once they combine. Eleven of the new operations executives currently work at American Airlines, and 11 for US Airways.

Tim Campbell, an integration consultant not employed at either airline, will become senior vice president of air operations.




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