American Airlines is reviewing its order for 25 Bombardier CRJ700 aircraft in the light of a proposed new labour agreement with the Allied Pilots Association (APA) restricting the size of American Eagle's fleet of regional jets to 50 seats or less.

Under the terms of the deal, American has agreed to its mainline pilots flying any jet larger than 51 seats in return for APA consent to raising the ceiling on the number of permitted smaller aircraft operated by subsidiary American Eagle. The agreement is subject to APA membership ratification.

The deal throws the future of Eagle's planned fleet of 70-seat CRJ700s into doubt. "If this agreement goes through American Eagle couldn't fly them. If we take them, American would operate them...but it's not necessarily an economical aircraft for American to fly," says Dallas-based Eagle.

According to the APA, its pilots earn roughly twice the salary of their Eagle counterparts, with the most senior regional captain averaging around $70,000. APA pilots also enjoy a full company pension plan, unlike Eagle crews.

Eagle is set to take delivery of the first 17 CRJ700s in 2001 and another eight in 2003 and holds options on another 25. The airline says it will "need to work out with Bombardier" a solution. Its likely options include selling the undelivered jets or converting the order to the smaller 50-seat CRJ200.

The airline, however, operates a fleet of 50 Embraer ERJ-145s, which it selected in preference to the CRJ200. Eagle, which also operates 20 ERJ-135s, holds options on another 17 of the 50-seat Brazilian jets. The new deal would permit Eagle to increase the number of regional aircraft to 56% of American's overall fleet size.

American's fleet totals 700aircraft of which Eagle has 281. The current scope clause, due to expire in August next year, restricts the airline to 67 jets sized between 45- and 69-seats. Exempt from the new deal is Eagle's 43 ATR-72 turboprops.

Source: Flight International