American Airways gives pilots almost 17% raises in new contract proposal

Pilots discuss as they take a look at the tail of an American Airways plane.

Mike Stone | Reuters

American Airways CEO Robert Isom on Thursday stated the provider has supplied its pilots pay raises totaling almost 17% underneath a brand new contract, in keeping with an inside video seen by CNBC.

The most recent proposal to the pilots’ union, the Allied Pilots Affiliation, comes lower than per week after rival United Airways and its pilots’ union reached a tentative settlement that features greater than 14% in whole raises inside 18 months.

United was the primary main US airline within the trade to get to that time within the pandemic, however it’s removed from a performed deal. The union stated Thursday it could pause data classes to pilots, who should ratify an settlement, so it could consider American’s new pitch.

Earlier this month, Isom stated American would make a brand new supply to the provider’s roughly 15,000 pilots as soon as the small print of United’s deal have been launched.

American’s newest proposal comes because the trade is battling a scarcity of pilots, notably at smaller regional airways. On the similar time, journey demand has soared, catching many airways flat-footed, particularly throughout peak journey intervals.

Unions will even weigh the influence of sky-high inflation that hit 8.6% final month of their contract negotiations.

American’s proposal features a 6% elevate at signing after which 5% raises at the beginning of 2023 and 2024.

“United put forth trade main pay, and we matched that for our staff,” Isom stated within the video message Thursday, referring to pilot pay charges. The distinction in percentages is because of larger pay for United pilots.

Isom stated American is proposing different pay will increase for coaching and 50% premium on reassignment, together with for reserve crews. There are different incentives reminiscent of retroactive pay if the settlement is ratified by Sept. 30, he stated.

“Getting a deal performed shortly will assist strengthen our coaching program and guarantee we are able to proceed to develop,” he stated.

Dennis Tajer, an American Airways captain and spokesman for the union, stated the APA is reviewing the proposal.

The APA’s relationship with American has been one of the vital fruitful within the trade. The union has repeatedly complained about fatigue from grueling schedules and different high quality of life points, reminiscent of schedule modifications, points it needed addressed within the subsequent contract.

American pilots have picked to protest working circumstances and an absence of progress in negotiations.

Pilots for Southwest Airways, Alaska Airways and Delta Air Traces have additionally picked for comparable causes. Delta’s pilots most not too long ago picked at airports across the US on Thursday, all three are in contract negotiations.

Earlier this week, American Airways’ regional provider Envoy Air stated pilots may obtain triple pay for selecting up open journeys in July, CNBC reported earlier this week.

United’s pilots’ union, the Air Line Pilots Affiliation, stated it should maintain a particular assembly subsequent week to guage the influence of American’s supply by itself tentative settlement, suspending city halls and different displays.

“We is not going to rush to a choice and can work as a unified physique to search out the perfect plan of action for your complete pilot group,” the union stated in a press release late Thursday.

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