AMR Corp. is expected to file a motion in U.S. Bankruptcy Court to reject union contracts at regional carrier American Eagle by the end of July, according to the pilots union.
In a hotline message sent to pilots Friday, the Air Line Pilots Association said the Fort Worth-based company indicated that it will file a Section 1113 motion shortly. The union's negotiating committee was presented with a contract proposal Friday that it called "virtually indistinguishable" from the initial term sheet given to Eagle pilots March 21.The association, which represents 3,000 pilots at Eagle, said that it was frustrated by the "regressive approach" and that management told union negotiators that if a consensual agreement is not reached soon, Friday's proposal will be filed in the Section 1113 motion."Normally, parties don't offer something and then pull it off the table unless circumstances change," the hotline message said. "Nothing has changed in the last few weeks to warrant a regressive move."The union added that AMR has not reduced its cost-savings targets for American Eagle as management has done with unions at American Airlines.In March, Eagle management asked its pilots for $43 million in cost cuts, the most of any labor group at the regional carrier. The airline proposed cutting captains' flight-hour pay rate by 5 percent, eliminating one week of vacation and cutting the company's 401(k) contribution.It also wanted to negotiate pay rates for pilots to fly larger 60- to 76-seat regional jets.American Eagle could not be immediately reached for comment.Andrea Ahles, 817-390-7631Twitter: @Sky_Talk