APA Negotiations

Productivity

American’s ability to achieve competitive unit costs is the best way to secure the company’s long-term stability and provide more opportunity for pilots to move from First Officer to Captain, or to advance to a larger aircraft.

The current contract limits the number of hours a month our pilots can fly, creates additional reserves and inflates our costs, creating major operational inefficiencies. Today's monthly maximum of 78 hours is one of the lowest in the industry, and that means our pilots' earning power is limited by the contract.

Our pilots work hard and many are flying as much as they can. However, the inefficiencies in the contract and additional reserves mean that overall, American pilots fly less on average than our competitors. This puts AA at a distinct competitive disadvantage.

 

We need a contract that removes the inefficiencies and allows pilots to fly more – and earn more – giving American a competitive advantage, and with no cost of pilot jobs. We have guaranteed that no pilots would be furloughed as a result of these contractual changes.

Another priority for both the company and the APA has been to address American's reserve system and create a greater ratio of line holders to reserves. Today, reserves make up about 30 percent of our total active headcount on an annual basis. By comparison, our network competitors’ ratio of reserves to line holders is, on average, around 15 percent.

We are very focused on finding a way to finalize our scheduling discussions and appreciate APA’s desire to link improved productivity and work rule changes to future growth. We believe this is a straightforward and transparent approach that produces the output we need to be successful.

Pilot Scheduling Maximums Data Source: AA/OA labor contracts, as of October 2011\

2010 Block Hours per Pilot Data Source: US DOT Form 41 & T100; Notes: Block hours = Form 41 block hours by entity multiplied by average carrier crew complements by entity, which were calculated based on route level T100 schedule data. Average round trip segment <7.5 hrs = 2 pilots, 7.5 hrs to 11.5 hrs = 3 pilots, > 11.5 hrs = 4 pilots. Final entity crew complement weighted by block hours.