In a letter yesterday, American Eagle president Pedro Fabregas explained that because a deal could not be reached with the pilots? union, the airline may be forced to look into regional carriers. The proposed contract was rejected on Wednesday by the union?s executive master council. The agreement would have meant additional concessions after giving many of the concessions in the last negotiations. The 10-year contract extension would provide a 1% wage increase in 2018, but freeze the pay after 12 years seniority for captains and after 4 years for co-pilots, in addition employee contributions toward insurance would increase from 30% to 35% over the course of three years. With the proposed contract rejected, the American Eagle management may begin making good on promises to shrink the airline until it is small enough to liquidate.
See "American may shift Eagle flights to other carriers after union deal nixed", Andrea Ahles, Fort Worth Star-Telegram, February 13, 2014