American Airlines has assigned 20 new Embraer regional jets to Compass Airlines, which will fly under the American Eagle brand starting early next year.
It will be the first time that Fort Worth-based American has used Compass, a unit of Trans States Holdings Inc., for regional flying.
Wednesday's announcement is a setback for Envoy Air, which was formerly called American Eagle. American ordered 60 of the 76-seat Embraer E-175 jets with options for up to 90 more, but elected not to place them with Envoy after its pilots rejected a long-term contract that union leaders considered too concessionary.
American Airlines and Envoy are owned by American Airlines Group Inc., the company formed by American's December merger with US Airways.