Envoy Air (MQ, Dallas/Fort Worth) is once more at an impasse after renewed talks between American Airlines (AA, Dallas/Fort Worth) management and the airline's pilot union concerning a revised labour contract failed to reach any agreement.

According to The Dallas Morning News, the Envoy chapter of the Air Line Pilots Association (ALPA) union rejected American's latest proposal to deliver the outstanding forty E175s it has on order with Embraer (EMB, Sao Jose dos Campos) to its subsidiary in return for revised labour contract terms.

"We focused on finding solutions to guarantee that the company would re-fleet our carrier while respecting the value we provide as professionals. Identifying the core issues was easy. Finding mutually acceptable solutions was extremely difficult. The MEC met three times and spent countless hours on conference calls to eventually arrive at a proposal that satisfied those requirements," Bill Sprague, the chairman of Envoy's Air Line Pilots Association (ALPA) Master Executive Council, told union members in a letter. "On Wednesday [August 20], company executives rejected that proposal. Their stated intent is to continue seeking lower feed costs at other Fee for Departure carriers, as they did with Compass Airlines (United States of America) (Minneapolis/St. Paul)."

American placed twenty EMB-175s with Compass when earlier this year, Envoy pilots rejected a proposal to place sixty of the jets with the airline in return for concessions including frozen pay scales until 2018, eliminated profit-sharing and increased health-care costs.

In a statement American management in turn, rejected ALPA's proposal.

“American would like to place some of its large regional aircraft with Envoy, but the economics of Envoy’s current contract are not competitive,” an American spokesperson said. “There were discussions with Envoy ALPA to see what could be done to remedy this, but these talks did not lead to an agreement.”