American Eagle Pilots Ratify Contract

American Eagle Airlines pilots ratified a new four-year labor agreement with Fort Worth-based parent AMR Corp., an accord that includes pay and benefit increases. The contract, which takes effect Sept. 1, also includes work rules that allow pilots on the regional air carrier to bid on one of every two new-hire positions at its larger sibling, American Airlines. About 62% of the 1,900 American Eagle pilots with the Air Line Pilots Assn. voted for the contract, said Homer Pugh, a union spokesman. The contract provides for guaranteed annual pay increases, based on an index tied to regional industry pay rates. “What we’ve created is a long-term partnership with our pilots, which will help us move full-steam ahead with our plans to strengthen our leadership position in the regional industry,” said American Eagle President Daniel P. Garton. The contract was the second to go before American Eagle pilots. The first was turned down in July. Last month, American Airlines pilots ratified a five-year contract, after nearly three years of bitter negotiations with AMR, that had focused on the regional jet issue. AMR shares fell 63 cents to close at $103.63 on the New York Stock Exchange.