NYTimes.com Article: AMR Rejects Pilot Request on Regional Jets

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AMR Rejects Pilot Request on Regional Jets

January 26, 2002

By BLOOMBERG NEWS




FORT WORTH, Jan. 25 - The AMR Corporation (news/quote)
rejected a proposal today from its American Airlines pilots
to shift the flying of regional jets from its commuter
unit, American Eagle, to American Airlines. AMR said the
plan was not financially sound.

The proposal from the Allied Pilots Association came after
American, the largest carrier, asked pilots to waive a
contract provision limiting growth at the American Eagle
unit.

AMR wants to expand its use of regional jets, aircraft that
are less expensive to operate than larger jetliners and can
fly farther than turboprops, to feed passengers to American
Airlines. The pilots want to keep the growth restrictions
on American Eagle as long as some American pilots remain
laid off as a result of the steepened decline in travel
since the Sept. 11 hijackings.

"We told them it wasn't economically feasible," an American
spokeswoman, Karen Watson, said. "The cost structures of
the two are very different."

The pilots union criticized the company for dismissing its
three-phase proposal instead of negotiating specific terms
or trying to reach a compromise on a short-term solution.

"The specific cost structure under which these aircraft
would be flown by our pilots would have been a negotiable
item had management wished to pursue discussions," a union
spokesman, Gregg Overman, said in a recorded message to
pilots.

http://www.nytimes.com/2002/01/26/business/26AMR.html?ex=1013093806&ei=1&en=dabb9197f82b1f04



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