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February 07, 2013

American Eagle unions ask judge to delay AMR's new agreement with Republic Airways

American Eagle unions are asking the bankruptcy court to delay or deny AMR's new contract with Republic Airways that allows Republic to fly regional flights for American.

In several court filings made Thursday afternoon, the Air Line Pilots Association, the Association of Flight Attendants and the Transport Workers Union argued the 12-year deal with Republic will cost Eagle employees their jobs.

"Instead of re-gauging its fleet in line with the best interests of its employee groups, including TWU, American seeks to outsource work that could and should be done by American Eagle and its employees," the TWU said in its filing.

The unions also said the deal should be delayed while AMR considers a possible merger with US Airways.

"But whether there is a legitimate business justification for AMR to enter into the proposed Capacity Purchase Agreement with Republic Airline Inc. ("the Agreement") only weeks after the AFA [contract] was approved by this Court and while a proposed merger is pending between AMR and US Airways is an entirely separate question. For the following reasons, AFA urges the Court to deny the proposed relief or, at a minimum, postpone its consideration until the potential merger between US Airways and AMR is either completed or abandoned," the AFA said in its filing.

In January, AMR announced it had signed a 12-year contract with Republic that would give American Airlines access to 53 Embraer E-175 jets that have 76 seats. Republic will purchase and operate the aircraft under the American Eagle livery starting in the middle of the year.

All 53 aircraft will be in service by the first quarter of 2015, the carrier said.

"The motion is being pursued without apparent consideration of the impact of either a merger with US Airways or American emerging as a stand-alone entity. The lack of any stated consideration of those alternatives on the proposed Republic transaction is astounding," the pilots union said in its filing.

A hearing has been set for February 14 at 10 a.m. CST to discuss the Republic contract.


Read more here: http://blogs.star-telegram.com/sky_talk/2013/01/american-signs-12-year-agreement-with-republic-airways-for-large-regional-jet-flying.html#storylink=cpy

-Andrea Ahles

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