American Eagle and its pilots union have hit an impasse in efforts to agree on a new contract before Eagle is spun off from AMR Corp , also the parent of American Airlines, Bloomberg reported on Sunday.

Last month, the union proposed contract and other changes that would cut Eagle's costs if it is spun off and allow the unit to retain more regional flying for American.

The talks stalled during negotiations on a counter-proposal submitted by Eagle, the report said.

Union leaders concluded after much deliberation that the company's last counter-proposal was unworkable, specifically with reference to the flexibility management was seeking in future amendments to terms for Eagle flying, Bloomberg reported, citing a message from the union to its members yesterday.

At this point, there are no further conversations scheduled between ALPA and management.

A spokesman for American Eagle was not available for comment.

(Reporting by Nadia Damouni in New York; Editing by Anshuman Daga)

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