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American Airlines is offering pilots an increase of almost 17% in the new contract proposal

The pilots talk as they look at the tail of an American Airlines plane.

Mike Stone | Reuters

American Airlines CEO Robert Isom said Thursday that the carrier offered its pilots a nearly 17% pay rise under a new contract, according to an internal video watched by CNBC.

The pilots ‘union, the Allied Pilots Association, has reached less than a week to reach a provisional agreement with rival United Airlines and its pilots’ union to cover more than 14% of all increases within 18 months, the first major US airline. to reach that point of the pandemic in the industry.

The deal is set to face a vote by United pilots, which will end in mid-July, however, and it is still unclear whether it has enough support to approve it.

Earlier this month, Isom said the Americans would make a new offer to the roughly 15,000 carriers of the carrier when details of the United deal are released.

It receives a 6% increase when its proposals are signed, followed by a 5% increase at the beginning of 2023 and 2024.

“United introduced the industry’s leading salary, and we paired that for our team,” Isom said in a video message Thursday, referring to the pilot’s salary rates. The difference in percentages is due to the higher salary of United pilots.

American’s latest proposal comes as the industry struggles with a shortage of pilots, especially in smaller regional airlines. At the same time, demand for travel has risen, with many airlines taking four to four, especially during travel periods.

Isom said the American is proposing other salary increases for training and a reallocation of the 50% premium, including for reserve crew. There are other incentives, such as retroactive payment, if the agreement is ratified by Sept. 30, he said.

“Making a deal quickly will help strengthen our training program and ensure we can continue to grow,” he said.

Dennis Tajer, captain and union spokesman for American Airlines, said the APA is considering the proposal.

The APA’s relationship with Americans has been one of the toughest in the industry. The union has repeatedly complained of fatigue due to schedule fatigue and other quality of life issues, such as schedule changes, issues it wanted to address in the next contract.

American pilots have staged a picket to denounce working conditions and a lack of progress in negotiations.

Pilots from Southwest Airlines, Alaska Airlines and Delta Air Lines also made the picket for similar reasons. The pilots of the delta were the last to picket at U.S. airports on Thursday, all three of whom are negotiating contracts.

Earlier this week, the regional airline Envoy Air of American Airlines said pilots could receive triple pay for taking trips that opened in July, CNBC reported this week.

American Airlines is offering pilots an increase of almost 17% in the new contract proposal

Source link American Airlines is offering pilots an increase of almost 17% in the new contract proposal

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