American Eagle’s pilots union has reached an agreement with the regional carrier’s management that guarantees that 60 new Embraer 175 aircraft that American Airlines ordered in December will be used with Eagle.
But the agreement calls for pilot pay scales to be frozen until 2018 and profit-sharing eliminated.
“The company chose to put us in this onerous position; however, we will work through this together. This agreement will live or die on its merits alone,” said Bill Sprague ALPA’s master executive council chairman for its Eagle pilots union.
The deal includes options for 90 other aircraft to be operated by the regional carrier, the Air Line Pilots Association and the carrier said late Friday evening. The company also agreed to hire more Eagle pilots at American Airlines’ mainline operations, with up to 50 percent of each pilot hiring class consisting of Eagle pilots.
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“If ratified, this agreement will form the foundations of a very bright future for not only our company, but also for our pilots by providing them new, large and modern aircraft to fly and a faster path to growing their careers at American Airlines,” American Eagle President Pedro Fabregas said in a memo to employees on Friday evening. The union could not be reached for further comment Monday.
The contract would last for 10 years from the date of signing. The 3,000 pilots represented by ALPA must ratify the agreement before it takes effect.
Although pilots would receive 1 percent pay increases starting in 2018, the captain pay scale is capped at 12 years of service, and the first officer pay scale is capped at 4 years of service. The employee contribution for medical insurance will also increase from 30 percent to 35 percent by 2017 in the new agreement.