Tag Archives for pilots.
99% of pilots casting a ballot voted to authorize a strike. This was largely pitched to members as negotiating leverage: vote to strike so you don’t need to strike. It’s a threat to the company to get them to give more in negotiations.
Once a union calls for strike authorization, members have to go along – otherwise the union’s credibility implodes and the company knows there isn’t a strike threat looming in the background.
American Airlines pilots have voted to authorize a strike. This came after the airline’s CEO announced that they’re ready to pay pilots up to $590,000 per year, essentially matching Delta’s new pay rates and improving on scheduling and other quality of life issues.
While the pilot union would like you to believe this is more than it is, it’s effectively business as usual.
14 airports have lost all commercial air service in the past three years, and 324 small airports have seen losses of air service averaging 30%.
While the long run trend is fewer non-stop flights in small markets, large hubs have made it economical for airlines to serve many of these markets with a connection. Now we’re seeing fewer – and in some cases no – connections.
Pilots have a lot more sway at airlines than flight attendants. It’s harder to become a pilot, in part because government regulations make doing so time-consuming and costly. That makes it hard to replace pilots. Pilots also have a lot more say over an airline’s operation, so can slow it down dramatically.
Those are important reasons why pilots are paid more. They receive better benefits. And their life on the road often features better hotels, better ground transportation, and higher meal allowances. Is that… fair?
Combined with a broad sense of bank fragility in the face of rising interest rates, alongside a concern that we’re late in the economic cycle and potentially headed into recession, United’s announcement worried some observers that it was a sign that consumer spending was tightening alongside shrinking household balance sheets.
But what changed at United? They cite some booking softness earlier in the year. And they made a decision to accrue costs related to a new pilot contract into the first quarter for their projections. Isn’t that… a little weird?
Delta Air Lines pilots got an incredible contract. American Airlines says they’ll match and that means pilots who make up to $590,000 per year. United Airlines and Southwest pilots are also negotiating new deals, and have a benchmark of what to expect.
The American Airlines pilot contract is so rich that the increased cost is much greater than the airline’s current profits. Combined with massive debt, American Airlines has a problem if fares do not go up.
American Airlines CEO went around their pilot union, telling cockpit crew that they’re ready to pay them up to $590,000 per year, essentially matching Delta’s new pay rates and improving on scheduling and other quality of life issues.
Immediately following this message, the board of the Allied Pilots Association agreed to seek authorization from pilots for a strike.
With tensions rising among pilots at American Airlines, management has put out a message directly to cockpit crew – rather than staying quiet in negotiations with its union – letting them know just how generous an offer they’re making: by the fourth year of the company’s proposed deal, a narrowbody captain would make as much as $475,000 – and a widebody captain up to $590,000 per year.
Traditionally a pilot at a regional airline might start out earning less than $50,000 per year, but get hired on by a major airline and that goes up quickly into the six figures, and well over $300,000 for senior captains flying widebody aircraft overseas. Some earn over $400,000.
Yet we’ve heard a lot of complaining by pilots recently. Contracts are open for negotiation at American Airlines, Southwest, and United.
There’s no question that Southwest’s once-vaunted labor relations are frayed with their pilots at present. The airline didn’t furlough anyone during the pandemic, while American furloughed nearly 20,000 including pilots. But memories are short. It seems pilots will be walking out at every rally until there’s a new contract.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
