American Airlines Pilot Contract Offer Increases to $9 Billion Following United Agreement
American Airlines (AAL) has decided to raise its pilot contract offer by more than a billion dollars to align it with the tentative agreement that United Airlines reached with its pilots last week.
The total offer now amounts to approximately $9 billion in incremental compensation and benefits, as announced by CEO Robert Isom in a call with pilots on Friday. The enhanced offer includes a pay raise for pilots and a ratification bonus.
During the call, Isom acknowledged that the United Airlines agreement had a significant impact, as it offered higher wages than Delta’s original negotiations. “The wages and retro pay matched the best in the industry — which, at the time, was Delta,” Isom stated.
He also emphasized that American Airlines’ proposal includes essential quality-of-life provisions crucial to their pilots.
The airline aims to secure ratification of the new agreement by August. However, the announcement was met with resistance from the Allied Pilots Association (APA) board of directors.
According to them, Isom’s offer did not prioritize critical elements they had highlighted and contained contingencies that would likely fail to gain approval from their members.
The APA board expressed disappointment, stating that the offer still falls behind industry standards and includes items that are already considered the minimum standard for pilots at competitor airlines. The union has indicated its intention to present a counterproposal in response.
Last week, United Airlines pilots, represented by the Air Line Pilots Association, reached a deal in principle with the airline, securing a raise of up to 40%. The agreement has an estimated value of about $10 billion over the life of the contract and encompasses improvements to various aspects, including work-life quality, compensation, job security, work rules, retirement, and benefits.
In contrast, American Airlines pilots are voicing their concerns and pushing back against their current tentative agreement. APA President Ed Sicher had previously criticized the existing agreement, stating that it pales in comparison to the tentative agreement reached by pilots at United Airlines, calling it “woefully deficient” in various aspects.
