AMR Corp. negotiated a six-year contract with the union representing dispatchers at American Eagle Airlines, Inc. AMR was scheduled to seek bankruptcy approval of a new contract with pilots at American Airlines at a hearing Dec. 19. According to the report, the American Eagle dispatchers ratified a new contract that changes neither wages nor medical benefits. There are 1.5% pay increases in January 2015 and 2016. The union will receive a $700,000 cash payment to reimburse expenses of negotiating the new contract. On behalf of dispatchers, the union also will have a $6.1 million unsecured claim against American Airlines. The new dispatchers' contract was scheduled for bankruptcy court hearing on Dec. 21.

American Eagle approved a new labor contract. The Association of Flight Attendants-CWA announced that 87% of the employees approved the new contract with the subsidiary of AMR Corp., which is trying to cut labor costs while under bankruptcy protection. The union said that Eagle made "substantial improvements" over the company's original demand for concessions. The union said it won wage increases and preserved work rules. AMR has negotiated cost-reducing contracts with American Airlines flight attendants and ground workers and Eagle bag handlers. American Airlines pilots, who voted against the company's last offer. Eagle is still working on deals with pilots and other groups.

American Eagle Airlines, Inc. announced that it will begin daily round-trip jet service this fall between Dallas/Fort Worth International Airport (DFW) and Hermanos Serdan International Airport (PBC) in Puebla, Mexico. The company will operate one flight per day between the two cities.