Leaders for pilots at American Airline's American Eagle
subsidiary have rejected a tentative contract offer, without sending it to
pilots for a vote.
American tried unsuccessfully to spin-off Eagle in recent
years because its costs were too high. Management asked the pilots to make
labor-cost concessions, but the union leadership Wednesday said the cuts were
too steep.
American, led by CEO Doug Parker, could shut down Eagle - as
Delta Air Lines did with its Comair subsidiary in September 2012 - and contract
the flying to other regional carriers.
US Airways, which merged with American Airlines in December,
contracts with regional airlines, including Republic Airways and Air Wisconsin,
to do short-haul and "express" flying. US Airways also has two
wholly-owned subsidiaries, PSA and Piedmont Airlines, that fly under the US
Airways brand to smaller and mid-size cities.
Source: Philly.com
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