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ATLANTA (Reuters) - The Air Line Pilots Association union said on Wednesday that pilots at American Eagle, the regional carrier AMR Corp AMR.N is planning to spin off, reached an agreement with the company that will give Eagle pilots an opportunity to be hired by American Airlines in the future.
The accord provides job protection and career progression for American Eagle pilots, who will occupy a minimum of 35 percent of every American Airlines new hire class.
The union said the accord had been negotiated in anticipation that AMR would move to divest itself of American Eagle, the regional carrier.
AMR said on Wednesday that it currently expects the American Eagle divestiture to take the form of a spin-off of Eagle stock to AMR shareholders.
The company added that an Eagle divestiture would help ensure American could offer competitive rates and services for its regional services while providing Eagle the chance to vie for the business of other airlines and expand.
Reporting by Karen Jacobs, editing by Gerald E. McCormick