March 28, 2014 / 3:15 PM / in 4 years

American Eagle pilots reject labor contract seeking concessions

March 28 (Reuters) - Pilots at American Eagle Airlines, a unit of American Airlines Group, on Friday voted down a 10-year labor contract that included concessions in exchange for a pledge to assign new, larger regional jets to the carrier, their union said.

The Air Line Pilots Association union, which represents American Eagle’s more than 2,700 pilots, said 92 percent of eligible pilots cast ballots and that 70 percent voted against ratification.

In a statement, the union said concessions that included pay freezes and increased healthcare costs were too much for pilots who had already made concessions when American was in bankruptcy last year.

American Airlines became the world’s largest carrier when it merged with US Airways in December. It has raised the possibility of placing the Embraer jets with another regional carrier should American Eagle’s pilots not approve the labor pact.

American Eagle, which plans to change its name to Envoy, is one of a number of carriers that operate regional flights for American. It has more than 14,000 workers. (Reporting by Karen Jacobs in Atlanta; Editing by Sophie Hares)

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