It's a giant eagle: I can't really come up with a snappy description here. Maybe there's a Tolkien joke I'm missing?
Anyway: 4 magical beast RHD, large size (no reach), a bad land speed, a very nice fly speed, two claws and a bite. That's not a bad chassis, even though it lacks hands.
Furthermore, giant eagles also have a bonus to spot checks, as well as Evasion (which seems a bit random).
Still... is a LA warranted here? I think it is. Flight is quite relevant at lower levels, and the ability scores are very good. I can definitely see someone playing those at ECL 5.
In the end, I'll give them +1 LA.