American Airlines plans to transfer all 47 of Envoy Air’s Bombardier CRJ700s to fellow wholly owned regional subsidiary PSA starting in the middle of next year, Envoy CEO Pedro Fábregas reported in a September 4 letter to employees posted on the Dallas Morning News website. Although the major airline hasn’t yet determined the exact dates and the rates at which it will transfer the 70-seat jets, it anticipates it will complete the exercise by the end of 2016.

American said the change will simplify Envoy’s operation and lower the group’s costs. Following the removal of the CRJs and the simultaneous retirement of its Embraer ERJ-140s by next year, Envoy’s fleet will consist solely of 50-seat ERJ-145s.

“While it is too early to determine the exact impact that this change will have on Envoy and our people, we know that we will need to adjust staffing,” wrote Fábregas. “For most groups, we believe that normal attrition will address much of these staffing changes. In some cases, there may be displacements from one location to another.”

The move by American comes some five months after Envoy’s pilots rejected a contract offer that would have given them the right to fly sixty 76-seat Embraer E175s in return for a pay cap on first officers of $38,000 a year after four years, cuts to per diems and higher health-care premiums.