AMR Corporation’s bankruptcy filing in late November will at least delay the planned divestiture of its American Eagle subsidiary, as well as throw into disarray any agreements forged between leaders of the Air Line Pilots Association (ALPA) and airline management.
American Eagle Airlines
AMR Corporation and its two U.S. airline subsidiaries, American Airlines and American Eagle, filed for Chapter 11 bankruptcy today after failing to agree to cost-cutting measures with its pilots.
Talks between the pilots of American Eagle and the management of AMR over the terms of a proposed divestiture of the regional airline reached an impasse over this weekend.
American Eagle pilots reached an agreement with management in late July that guarantees an opportunity to work for American Airlines as AMR prepares to divest itself of its regional airline holdings. Under the settlement, Eagle pilots will occupy at least 35 percent of every American Airlines new-hire class, and that percentage will increase to offset any potential periods of retraction.
The management and pilots of American Eagle are “aggressively” preparing for an eventual divestiture of the regional airline from AMR, Eagle’s Air Line Pilots Association master executive council vice chairman, Dave Ryter, told AIN in late March.
American Eagle’s first shipment of new airplanes in some five years began last month as the Dallas-based regional airline took delivery of two new CRJ700s from Bombardier. Scheduled to accept two airplanes each month for about the next year, Eagle as of last month already flew 25 of the Canadian jets, all of which offered a first-class section as of July 2.
Alleged maintenance-related gaffes at Trans States Airlines, GoJet Airlines and Executive Airlines prompted the FAA to propose more than $3.1 million in civil penalties against the carriers in late June. The proposed fines against St. Louis-based Trans States Holdings subsidiaries TSA and GoJet totaled $2,476,075, while American Eagle unit Executive Airlines faces a $700,000 penalty.
American Eagle president and CEO Peter Bowler has given AMR notice of his retirement after a 26-year career with American Airlines and its regional subsidiary. AMR has asked former American Eagle chief Dan Garton to return to his old post to replace Bowler. AMR also reiterated that it might divest itself of its regional subsidiary. It first announced the possibility of a sale in 2007.
American Eagle president and CEO Peter Bowler has given AMR notice of his retirement after a 26-year career with American Airlines and its regional subsidiary.
American Eagle Airlines plans to place nine first-class seats on each of its 25 Bombardier CRJ700 regional jets and ready them for use by July 2, the company announced last month. As part of the service, Eagle will offer complimentary first-class dining service.