No surprise here.

American Airlines today told the airline’s pilot union thanks, but no thanks, to the union’s most recent contract proposal.

According to American’s response to the Allied Pilots Association, the proposed package would have increased American’s pilot costs by more than $1.4 billion a year and would have brought the pilot cost per hour to a level that was more than that of competitors Delta Air Lines and Continental Airlines combined.

In other news, Bloomberg reports that a seniority agreement that had been negotiated between American, American Eagle, and their respective pilot unions has collapsed. The reason? A disagreement over adding 25 additional regional jets to the Eagle fleet.

The agreement, reached Oct. 24, would have preserved seniority rights for American pilots and helped recruit new pilots at the commuter unit.

The issue now will now be decided by an independent arbitrator, the APA told members in a message today.

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