Says It's A Bad Idea, But Falls Short Of Blunt Opposition

American Airlines' planned divestiture of regional carrier American Eagle is a bad idea for all concerned, especially for employees and passengers, according to officials with the Air Line Pilots Association.

The Dallas Morning News notes the union, which represents pilots at Eagle, stopped short of bluntly opposing the sale... but they do believe spinning the carrier off wouldn't be good for the airline.

As ANN reported, American Airlines parent company AMR bowed to investor wishes last week, and announced its intention to sell or spin off the regional carrier. The airline is likely worth somewhere in the neighborhood of $1 billion, analysts say... big money at a time American is looking to report all the profit it can.

ALPA Chairman Herb Mark also took AMR Chief Financial Officer Thomas Horton to task, for suggesting an independent Eagle could grow, and hire entry-level pilots at even lower wages.

Such a suggestion was "irresponsible and cavalier," Mark said. "If managements try to take more from the labor groups, you will see a lot of pilots begin to leave the profession because the pay will be so low that working as an airline pilot will no longer be a worthwhile career choice."

Many pilots at Eagle plan to look for new jobs, Mark added.

AMR Spokesman Andy Backover disputed some of ALPA's claims, including the suggestion spinning off Eagle would hurt wages for experienced workers.

"Most employees' jobs at Eagle are expected to change very little as a result of this announcement," he said.

FMI: www.aa.com