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UPDATE 1-American Airlines' Envoy unit in tentative agreement with pilots
December 8, 2014 / 1:47 PM / in 3 years

UPDATE 1-American Airlines' Envoy unit in tentative agreement with pilots

(Adds background, executive quote)

By Jeffrey Dastin

Dec 8 (Reuters) - American Airlines Group Inc subsidiary Envoy Air has reached a tentative agreement with its pilots, according to an internal letter from Sunday reviewed by Reuters.

The tentative agreement comes after the pilots rejected an earlier contract in March, which led to American shrinking the regional carrier. Under the tentative pact, Envoy can upgrade its fleet beginning in late 2015 with 40 new Embraer 175 planes already purchased by American.

Envoy also could land up to 90 more E175 jets if American chooses to exercise its options on hold with Embraer to buy those aircraft, the letter said.

“If ratified, this Tentative Agreement ... will be especially promising for our pilots, providing them new, large and modern aircraft to fly and a faster path to a career at American Airlines,” Envoy Chief Executive Officer Pedro Fábregas wrote in the letter.

American announced plans to transfer at least 50 aircraft out of Envoy’s fleet in November because its pilot base had dwindled since rejecting a deal with management earlier this year. Envoy has announced job cuts as well.

The new tentative agreement will be sent immediately to the pilots for a vote, the letter said. (Editing by Alden Bentley and Jeffrey Benkoe)

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