American Airlines is raising its latest contract offer to its pilot union to $9 billion. The increase, more than a billion dollars, is comparable to the tentative deal United Airlines struck with its pilots last week, which would raise pay by up to 40% over four years. In American’s case, the deal includes a 21% pay bonus offer and ratification bonus. CEO Robert Isom says the goal is to ratify a new deal by August, but the Allied Pilots Association says the offer isn’t good enough and has plans to submit a counterproposal.
- Allied Pilots Association’s president said it will decide “whether management’s comprehensive proposal is worthy of a membership vote.” The previous offer was supposed to be voted on Monday.
- American is one of several airlines adjusting operations to accommodate extreme heat in certain U.S. cities.
By Rob Sacks, Editor at LinkedIn News
American Airlines pilot contract offer increases to $9 billion following United agreement
American Airlines (AAL) agreed to raise its pilot contract offer by more than a billion dollars to bring it on par with the tentative agreement competitor United Airlines reached with its pilots last week.
The total offer reaches about $9 billion dollars in incremental compensation and benefits, CEO Robert Isom said in a call with pilots Friday. It will include a pay raise for pilots and a ratification bonus.
Isom said the United agreement “changed the landscape” and had wages that were higher than Delta’s original negotiations.
Isom said the goal is to reach an August ratification.
But in a statement, the Allied Pilots Association board of directors said Isom’s announcement gave an “offer that included the least critical elements prioritized by the Board and was riddled with contingencies that would justifiably fail to pass muster with our members.”
Last week, United Airlines pilots, represented by the Air Line Pilots Association, reached a deal in principle with the airline, giving the pilots up to a 40% raise. The deal has about $10 billion in value over the life of the contract, the union said, with improvements to “quality of work-life, compensation, job security, work rules, retirement, benefits.”
American Airlines pilots pushed back after the announcement.
Last week, APA President Ed Sicher said in a statement it is “dead obvious” their union’s existing tentative agreement is “woefully deficient by comparison” to the tentative agreement reached by its competitor airline’s pilots.
