American Airlines Negotiations
APA Negotiations
Wages/Pay Rates
A Competitive Cost Structure
Competitive labor costs have two main components: compensation that recognizes the skills and experience of employees, and the overall cost structure that rewards productivity and allows a company to compete effectively in the market.
American Airlines is committed to providing fair pay, strong retirement benefits, job protections and professional opportunities to its pilots. MORE
APA’s Proposed Cost Structure
The union’s current compensation proposal calls for a 53 percent pay increase plus annual increases of six percent plus inflation. These changes would cost the company about $700 million in 2009 and would drive AA's rates to levels that are 20 percent higher than those agreed to at United in 2000 and Delta in 2001. These contracts contributed to the bankruptcy filings at both carriers and, subsequently, a dramatic decrease in pilot compensation and retirement benefits. MORE
The New Delta
The Delta/Northwest merger is the only pilot agreement negotiated since the industry restructured. Negotiated pay increases were made possible in part by creating a carrier expected to generate $2.5 billion in new revenue and cost savings, giving the combined airline $35 billion in revenues. Yet even with negotiated pay increases, pilot pay rates at the new Delta will not exceed any current AA pilot pay rate until 2010 and will not surpass AA’s current pay rates on all aircraft until 2012. MORE
