American Eagle could be forced to drop flights in spinoff
By TREBOR BANSTETTER
[email protected]
American Eagle could be forced to drop up to 250 flights from airports including Dallas Love Field, Kansas City, Mo., and San Jose if it’s sold or spun off next year.
The flights could be eliminated because of a clause in the contract between American Airlines and its pilots union that prohibits flights from certain airports unless they’re operated by a carrier that’s wholly-owned by AMR Corp., American’s Fort Worth-based parent.
AMR, which owns American and Eagle, announced plans earlier this month to divest the regional airline in 2008, either by selling it to a third party or spinning off its stock as an independent company. But officials with the union that represents Eagle pilots said Thursday that the contract provision could mean the elimination of service in many cities. They listed Love Field, Raleigh-Durham, N.C., San Jose, Calif., and Santa Ana-Orange County, Calif., as airports that could lose Eagle flights.
“This is just another example of the lack of any strategic vision or coordination over the sale of this airline,” said Herb Mark, an Eagle pilot and president of the carrier’s chapter of the Air Line Pilots Association, in a prepared statement. “It’s been more than two weeks since the sale announcement, and we are still waiting to be briefed by management on a business strategy or rationale for divesting American Eagle.”
The clause in question is in the 2003 contract between American Airlines and the Allied Pilots Association, which represents the larger carrier’s pilots. It requires that flights from cities that aren’t major American hubs to be flown by either American or an AMR subsidiary. If Eagle becomes an independent company, union leaders say, it would have to drop about 250 of the flights it operates on behalf of American. That totals 15 percent of its 1,700 daily departures.
Eagle spokeswoman Andrea Huguely acknowledged that the clause could impact many of the airline’s flights. But she added that American and its pilots are currently negotiating a new contract, which could include a new provision for regional flying.
“The outcome of those negotiations could affect this issue,” she said. She also said that American could replace some Eagle routes with mainline flights.
“Certain cities could be affected, but it’s too early in the process to know exactly what’s going to happen,” she said.
Eagle’s pilots have been increasingly vocal about their opposition to the proposed divestiture.
“Everyone loses,” Mark said, “including our valued customers in California, Texas, Missouri and North Carolina, who are likely to lose quality, convenient air service.”
By TREBOR BANSTETTER
[email protected]
American Eagle could be forced to drop up to 250 flights from airports including Dallas Love Field, Kansas City, Mo., and San Jose if it’s sold or spun off next year.
The flights could be eliminated because of a clause in the contract between American Airlines and its pilots union that prohibits flights from certain airports unless they’re operated by a carrier that’s wholly-owned by AMR Corp., American’s Fort Worth-based parent.
AMR, which owns American and Eagle, announced plans earlier this month to divest the regional airline in 2008, either by selling it to a third party or spinning off its stock as an independent company. But officials with the union that represents Eagle pilots said Thursday that the contract provision could mean the elimination of service in many cities. They listed Love Field, Raleigh-Durham, N.C., San Jose, Calif., and Santa Ana-Orange County, Calif., as airports that could lose Eagle flights.
“This is just another example of the lack of any strategic vision or coordination over the sale of this airline,” said Herb Mark, an Eagle pilot and president of the carrier’s chapter of the Air Line Pilots Association, in a prepared statement. “It’s been more than two weeks since the sale announcement, and we are still waiting to be briefed by management on a business strategy or rationale for divesting American Eagle.”
The clause in question is in the 2003 contract between American Airlines and the Allied Pilots Association, which represents the larger carrier’s pilots. It requires that flights from cities that aren’t major American hubs to be flown by either American or an AMR subsidiary. If Eagle becomes an independent company, union leaders say, it would have to drop about 250 of the flights it operates on behalf of American. That totals 15 percent of its 1,700 daily departures.
Eagle spokeswoman Andrea Huguely acknowledged that the clause could impact many of the airline’s flights. But she added that American and its pilots are currently negotiating a new contract, which could include a new provision for regional flying.
“The outcome of those negotiations could affect this issue,” she said. She also said that American could replace some Eagle routes with mainline flights.
“Certain cities could be affected, but it’s too early in the process to know exactly what’s going to happen,” she said.
Eagle’s pilots have been increasingly vocal about their opposition to the proposed divestiture.
“Everyone loses,” Mark said, “including our valued customers in California, Texas, Missouri and North Carolina, who are likely to lose quality, convenient air service.”
