American Airways CEO vows to enhance pilot pay as wages at different carriers rise

FILE – American Airways President Robert Isom speaks at a information convention in regards to the firm’s new partnership with Alaska Airways, Thursday, Feb. 13, 2020, in Seattle. American Airways CEO Doug Parker will retire subsequent March and get replaced by the airline’s present president, Robert Isom.

Elaine Thompson | AP

American Airways CEO Robert Isom mentioned this week that the corporate will revise its pay proposals for its 14,000 pilots, acknowledging pay requirements have elevated for the reason that firm made its most up-to-date supply earlier than the pandemic.

The Fort Value, Texas-based airline had beforehand floated a 4% date-of-signing enhance plus 3% annual raises after that. Then Covid-19 roiled the {industry} and put talks between carriers and labor unions all through the {industry} on maintain.

“It was industry-leading on the time we proposed it,” Isom mentioned in a video message to pilots posted Monday, which CNBC reviewed. “Because the pandemic wanes, the usual for compensation has gone up.”

Isom’s message got here days after two of American’s subsidiaries, regional carriers Piedmont and Envoy, prolonged huge raises to its pilots, together with a short lived 50% pay hike by means of the top of August 2024, in hopes of easing a pilot scarcity that has curbed progress plans.

United Airways final month grew to become the primary main service within the pandemic to achieve a contract take care of its pilots’ union, the Air Line Pilots Affiliation. Union management is ready to vote on that settlement subsequent week. If handed, it is going to go to pilots for a vote.

“We are going to take different carriers’ ratified agreements, together with United’s, into consideration and replace our pay proposals shortly when particulars are recognized,” Isom mentioned. “Our workforce shall be paid effectively and be paid competitively. You aren’t going to fall behind community friends.”

American’s pilots and people at different carriers, together with Delta’s, have pickedeted in latest months to protest the grueling schedules airways have offered to capitalize on the rebound in journey demand.

Dennis Tajer, spokesman for the Allied Pilots Affiliation, American’s pilots’ union, mentioned the corporate has to do greater than elevate wages.

“There isn’t any work-life stability,” he mentioned Wednesday.

With out offering particulars, Isom mentioned American’s new proposal will embody higher advantages and quality-of-life provisions.