The Air Line Pilots Association will send out the agreement to its pilots for a vote, according to a memo sent by Envoy chief executive Pedro Fabregas. Envoy is owned by American Airlines Group and operates regional flights for American Airlines under the American Eagle brand.
Under the agreement, American will guarantee 40 of its new 76-seat Embraer 175 jets will be flown by Envoy starting in the fourth quarter of 2015. If American chooses to exercise options on an additional 90 E175 jets, Envoy will operate those as well.
Fabregas said the agreement also improves the flow-through for pilots at Envoy to be hired at American's mainline operations.
"If ratified, this Tentative Agreement will form the foundation for a bright future for our company. It will be especially promising for our pilots, providing them new, large and modern aircraft to fly and a faster path to a career at American Airlines," Fabregas told Envoy employees.
The agreement freezes pay scales for pilots until 2018 with one percent annual pay increases beginning after that. On the date of signing the contract, captains will receive a $12,500 bonus and first officers will receive a $7,500 bonus.
"The MEC believes this TA is the best obtainable agreement, and provides the best path forward for Envoy pilots given our circumstances," said ALPA master executive council chair Sam Pool in a statement to pilots. "To say this has been a difficult process is an understatement. All quadrants of our diverse pilot group will be affected by some factors of this agreement, and our reps have not taken this decision lightly."
In March, Envoy's pilots previously rejected a 10-year contract that would have allowed the regional carrier to fly new, larger planes in exchange for freezing pay scales until 2018 and eliminating profit-sharing. Following that rejection, American began moving regional jets away from Envoy to other regional operators who had cheaper operating costs.
Keep reading for the full letters from ALPA and Envoy.
Fellow Envoy Pilots,
The Envoy MEC reconvened early this morning in Washington, DC to consider a final proposal from company representatives. After another full day of intense negotiations and discussions, late tonight the MEC approved a tentative agreement (TA), endorsing and supporting its ratification by the membership. The MEC believes this TA is the best obtainable agreement, and provides the best path forward for Envoy pilots given our circumstances.
To say this has been a difficult process is an understatement. All quadrants of our diverse pilot group will be affected by some factors of this agreement, and our reps have not taken this decision lightly. It has been one year since this process began, and to this end, our negotiators, officers and the entire ALPA leadership have ensured that they have achieved as much as possible in return for the re-fleeting of our airline.
We’ve reached a point where the final decision rests with you, and a ratification vote will be conducted in the near future. A summary and the full language are attached to this email for your review. The MEC is planning roadshows beginning this week, and will conduct several all pilot conference calls. We will provide you a list of specific times and locations for all roadshows and pilot conference calls in a future email.
Thank you for your continued professionalism and support.
Envoy MEC Chairman
Envoy and ALPA Reach Tentative Agreement to Operate Larger, Two-
Class Embraer E175 Aircraft and Position the Airline for Growth
Dear Envoy team:
I am very pleased to report that a Tentative Agreement has been reached with our pilots,
represented by the Air Line Pilots Association (ALPA). My sincere thanks to Envoy ALPA for all
of their work to develop and reach this Agreement that has been endorsed and will be
supported by the union’s Master Executive Council (MEC). It is my understanding the
tentative agreement will immediately be sent to our pilots for a vote. If ratified, this Tentative
Agreement will form the foundation for a bright future for our company. It will be especially
promising for our pilots, providing them new, large and modern aircraft to fly and a faster path to
a career at American Airlines.
This Tentative Agreement will allow Envoy to upgrade its fleet with a guarantee of 40 new 76-
seat Embraer 175 (E175) regional jets, beginning in the fourth quarter of 2015. Additionally, this
agreement ensures that Envoy will operate up to 90 additional E175 jets, if American Airlines
chooses to exercise the options they hold with aircraft manufacturer Embraer on those aircraft.
For our pilots, this agreement dramatically improves their ability to further their careers at
American Airlines by enhancing the company’s industry leading Envoy-to-mainline flow-through
rights for current and new hire Envoy pilots. The time it takes for our pilots to qualify and receive
priority over external candidates for pilot positions at American will be greatly reduced, allowing
our pilots to advance and grow their careers at both Envoy and American. It will also help us
attract the best new talent, because we will be able to offer a clear career path to the world’s
largest mainline carrier – something no other regional airline can currently offer.
Thank you again to the negotiating committee and Envoy ALPA. ALPA will provide details of the
agreement and a voting schedule to our pilots soon. Much work and discussion went into
creating an Agreement that would satisfy all groups involved and because of this, the future of
our company has never looked brighter. As we head into the holiday season, it is my sincere
wish that Envoy will have much to celebrate in the new year!
Thank you for all you do – for each other and our customers,
Pedro Fábregas, President & CEO