The three unions that represent American Eagle’s workers urged the US Bankruptcy Court to delay the deal in which rival Republic Airlines would operate planes under the American Eagle brand. The deal was signed January 23 and allows Republic Airlines to operate 76-seat jets to feed American Airlines flights, mainly in and out of Chicago’s O’Hare International Airport. The initial deal involves 53 jets and Republic can acquire another 47 to operate on American’s behalf.
The Association of Flight Attendants, Air Line Pilots Association, and the Transport Workers Union filed their objections before the deadline to respond to the AMR motion. US Bankruptcy Judge Sean Lane us set to consider the issue Thursday.
In the filing, the AFA acknowledged that the Republic deal is allowed via a new collective bargaining agreement approved by American Eagle flight attendants. The filing stated questioned whether it is legal for AMR to enter into the Proposed Capacity Purchase Agreement with Republic Airlines after the AFA CBA was approved by the court and while a merger is pending between AMR and US Airways.
AMR is the owner of both American and AMR Eagle, which operates American Eagle Airlines Inc. and Executive Airlines Inc. under American Eagle. The AFA filing said American and AMR proposed the Republic deal with no consideration of the deal’s impact on the operations of American Eagle.
AMR dominates the decision making at American Eagle, which is its subsidiary. American Eagle doesn’t have separate representation in the court proceeding. This is the reason why the labor unions took it upon themselves to represent the employees of American Eagle.
The filing said that anything that increases flying elsewhere would impact the ability of AFA members to get flying opportunities and receive profit sharing payouts, earn sic pay accrual, vacation pay accrual, bid for available routes, and health plan coverage.