AMR delaying sale of affiliate
Deal with pilot union may let company keep Executive Airlines
11/23/2002
By ERIC TORBENSON / The Dallas Morning News
AMR Corp., parent of American Airlines, said Friday that it will delay selling its Executive Airlines subsidiary to make a deal with its pilots union that could make such a sale unnecessary.
AMR said Nov. 7 that it had a deal to sell Executive, a part of its regional American Eagle carrier that connects passengers in Miami and San Juan, Puerto Rico.
The company said at the time that the sale would allow Eagle to keep expanding. That's because Eagle wouldn't have been able to take new regional jets next year without violating provisions in American's contract with its pilots. The contract caps Eagle's schedule expansion while American pilots are on furlough.
In a Friday afternoon message to pilots, Allied Pilot Association president John Darrah said his union would relax the restrictions on Eagle's growth "while we explore mutually acceptable alternatives." Almost 900 American pilots are on furlough.
Mr. Darrah said the union made the move to help its overall contract talks with American, which resume Dec. 4. Either side can end the agreement for any reason, he wrote.
American applauded the development in a statement: "It is a positive sign that the APA understands the financial challenges we are facing and wants to work with us in crafting a long-term solution."
The union representing Eagle's pilots also praised the agreement. "The announcement of these letters of agreement has a tremendous potential for starting to solve some of the problems at American Airlines and American Eagle," said spokesman James Magee.
AMR shares rose 20 cents Friday to close at $7.66.
E-mail [email protected]
Deal with pilot union may let company keep Executive Airlines
11/23/2002
By ERIC TORBENSON / The Dallas Morning News
AMR Corp., parent of American Airlines, said Friday that it will delay selling its Executive Airlines subsidiary to make a deal with its pilots union that could make such a sale unnecessary.
AMR said Nov. 7 that it had a deal to sell Executive, a part of its regional American Eagle carrier that connects passengers in Miami and San Juan, Puerto Rico.
The company said at the time that the sale would allow Eagle to keep expanding. That's because Eagle wouldn't have been able to take new regional jets next year without violating provisions in American's contract with its pilots. The contract caps Eagle's schedule expansion while American pilots are on furlough.
In a Friday afternoon message to pilots, Allied Pilot Association president John Darrah said his union would relax the restrictions on Eagle's growth "while we explore mutually acceptable alternatives." Almost 900 American pilots are on furlough.
Mr. Darrah said the union made the move to help its overall contract talks with American, which resume Dec. 4. Either side can end the agreement for any reason, he wrote.
American applauded the development in a statement: "It is a positive sign that the APA understands the financial challenges we are facing and wants to work with us in crafting a long-term solution."
The union representing Eagle's pilots also praised the agreement. "The announcement of these letters of agreement has a tremendous potential for starting to solve some of the problems at American Airlines and American Eagle," said spokesman James Magee.
AMR shares rose 20 cents Friday to close at $7.66.
E-mail [email protected]
