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Pilots' union rejects contract at American Eagle

FORT WORTH, Texas - Union leaders have rejected a contract offer for pilots at American Eagle, raising fresh doubts about the fate of the carrier, which is the regional-flying wing of American Airlines.

The ruling council for the Air Line Pilots Association chapter at Eagle rejected the company's latest offer on Wednesday without sending it to members for a vote.

Eagle wants the pilots to make labor-cost concessions in exchange for getting new planes.

A union official, John Gardner, says company negotiators are warning that without a deal, they'll shrink the airline until it's small enough to liquidate.

The company declined to comment immediately.

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