Pilots at American Eagle Reject Contract Offer

Update expected after 10:30 a.m. conference call

Pilots at regional airline American Eagle are rejecting a contract proposal that they say freezes their pay and cuts health-insurance benefits.

About 70 percent of the pilots voting turned down the offer, the Air Line Pilots Association said Friday.

Eagle's parent company also owns American Airlines, and it has threatened to farm out Eagle's planes to other regional carriers.

Regionals operate smaller planes that often fly on secondary routes and connect passengers to big hub airports that are served by so-called mainline airlines such as American, United and Delta.

Regional airlines are reporting a shortage of pilots. The union said the airlines need to raise pay to attract more pilots.

Copyright AP - Associated Press
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