American Eagle pilots will not have their jobs filled by pilots from code-share partner American Airlines [NYSE: AMR], which is downsizing its operations, an arbitrator has ruled in the labor dispute. American Eagle pilots became concerned when American and its pilots union negotiated a deal this spring that would have given furloughed American pilots first dibs on Eagle captains' jobs.

That agreement was part of $4 billion in labor concessions made with American and its three largest unions as a way to avoid bankruptcy. Those concessions resulted in the layoff of about 2,500 pilots, most of which were former St. Louis-based TWA pilots. At least 1,000 of the laid-off American pilots were promised jobs with American Eagle, said John Darrah, president of the Allied Pilots Association, the union representing American's pilots.

Arbitrator Richard Kasher essentially sided with the Eagle pilots and blocked the plan. However, details about who will get new Eagle jobs still must be worked out among American, Eagle and their airlines' pilots unions. Both airlines are owned by Fort Worth-based AMR [NYSE: AMR]. American said in July it planned to downsize the St. Louis hub, cutting daily departing flights from 417 to 207 effective Nov. 1 (CRAN, July 21). The airline also will close its St. Louis reservations center Sept. 15, which employs about 500 workers in downtown St. Louis. In all, 2,000 more workers will lose their jobs, said Gerard Arpey, AMR president and chief executive officer.

>>Contact: Lisa Bailey, American Eagle, 817-963-1602.<<