American Airlines CEO Robert Isom says pilot pay would be boosted by $8 billion over four years under a contract proposed by the Fort Worth carrier.
In a video message to pilots on Friday, Isom reiterated that American’s proposal replicates the economics of Delta Air Lines’ new contract, a promise he made in March after Delta closed an industry-leading deal that awarded cumulative pay raises of 40%.
“It’s a contract that improves upon the agreement in principle we negotiated last fall,” Isom said. “It’s a contract our pilots deserve, and I know a contract that we can afford.”
Allied Pilots Association, the union representing more than 15,000 pilots at American, said in an update to members that it believes an agreement is near. Its members began voting over the weekend on authorizing a strike, prompting Isom to implore pilots not to let that be a distraction from the offer on the table.
The strike threat is intended to speed up contract talks that are now in their third year. The Railway Labor Act, which covers the airline industry, doesn’t allow pilots to walk off the job unless federal regulators agree that the two sides are at an impasse — something that would likely be months or years away.
“We hear you, we absolutely hear you,” Isom said. “But a new deal will only get done at the negotiating table. So that’s the company’s focus. It’s my focus.”
The union acknowledged Isom’s estimate of what pilots stand to gain, but also said “it must be remembered that American Airlines’ pilots are negotiating from a bankruptcy-era contract that left us significantly behind Delta from the start.”
“This week, we will meet with the [union’s board of directors] to discuss and evaluate current progress, while simultaneously continuing to negotiate for a deal that represents the pay, work rules and quality of work life our industry commands and which you have earned,” said the union’s update to pilots.
American’s pilots would receive a 21% pay increase on average in the first year, Isom said in a video to pilots in March. Isom said the proposal would raise pay by a cumulative 40% over four years and improve profit sharing.
Factoring in base salary and 401(k) matches, captains operating narrow-body planes, typically used for short-haul domestic and international flights, would make $475,000 a year at the top of the scale, a $135,000 bump from what they earn today. Captains piloting wide-body planes, larger aircraft that typically fly long hours nonstop, would make $590,000 at the top of the scale, or $170,000 more than the current salary.
American is also negotiating a new contract with its flight attendants.
On Tuesday, American’s more than 25,000 flight attendants represented by the Association of Professional Flight Attendants plan to picket at nine key hubs across the country, including DFW International Airport. In March, both parties filed for federal intervention by the National Mediation Board to move negotiations forward.
“We’re pleased with the meaningful progress we’ve made in negotiations for our flight attendants and continue to meet regularly with the (union) to reach an agreement,” said American spokeswoman Sarah Jantz in a statement.
