The Delta/Northwest merger is the only pilot agreement negotiated since the industry restructured. Negotiated pay increases were made possible in part by creating the world’s largest carrier, expected to generate $2.5B new revenue and cost savings, giving the combined airline $35B 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.
| Delta/Northwest Captain Max Rates |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
2009 |
2010 |
2011 |
2012 |
|||||||||
AA |
DL/NW |
AA vs. DL/NW |
AA |
DL/NW |
AA vs. DL/NW |
AA |
DL/NW |
AA vs. DL/NW |
AA |
DL/NW |
AA vs. DL/NW |
|
| B-777 | $204.83 |
$200.69 |
2.1% |
$204.83 |
$208.71 |
-1.9% |
$204.83 |
$217.06 |
-5.6% |
$204.83 |
$225.75 |
-9.3% |
| A-300 | $179.17 |
$167.98 |
6.7% |
|||||||||
| B-763 | $179.39 |
$167.98 |
6.8% |
$179.39 |
$174.70 |
2.7% |
$179.39 |
$181.69 |
-1.3% |
$179.39 |
$188.95 |
-5.1% |
| B-762 | $177.41 |
$167.98 |
5.6% |
$177.41 |
$174.70 |
1.6% |
$177.41 |
$181.69 |
-2.4% |
$171.41 |
$188.95 |
-6.1% |
| B-757 | $173.81 |
$167.98 |
3.5% |
$173.81 |
$174.70 |
-.05% |
$173.81 |
$181.69 |
-4.3% |
$173.81 |
$188.95 |
-8.0% |
| B-737 | $165.70 |
$161.09 |
2.9% |
$165.70 |
$167.53 |
-1.1% |
$165.70 |
$174.24 |
-4.9% |
$165.70 |
$181.21 |
-8.6% |
| MD-80 | $161.23 |
$149.07 |
8.2% |
$161.23 |
$155.03 |
4.0% |
$161.23 |
$161.23 |
0.0% |
$161.23 |
$167.68 |
-3.8% |
So an AA MD80 Captain, for example, will earn 11.9 percent more than his DL/NW counterpart in 2008, 6.6 percent more in 2009, 2.5 percent more in 2010 and will only be surpassed in 2012. Again, this is working under AA’s pay rates effective May 1, 2008 and the work rules under the current CBA.
The company believes labor negotiations should at all times be guided by a set of data and benchmarking information that allows the negotiating committees to gauge the impact of any contract provision on American’s position and costs relative to the rest of the industry. The company hopes to work with the APA to identify mutually acceptable data, including public filings and internal financial information, to inform negotiations.
Source: Letter from Lee Moak to DL pilots, 6-30-08 Joint Collective Bargaining Agreement "Negotiators' Notepad"
Notes: Assumes constant schedule, 2008-2012, no salary inflation outside of current contracts, no instructor salary increase; no change in Social Security maximum; OA max rates used are the closest matches to AA equipment types; AA will retire its A300 aircraft by end of 2009.
