American Airlines Negotiations
Total Costs
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 market-based pay, job protections, professional opportunities, and among the best healthcare and benefit packages in the industry.
The significant drivers and competitive measurements of flight attendant costs are wages, pensions, vacation, pay guarantees, sick time, health benefits and personnel expenses. To compare how these "costs" stack up against the competition, we regularly review publicly available data from the U.S. Department of Transportation (DOT). Based on DOT numbers, American has the highest flight attendant costs of the network passenger carriers, many of which the company competes with on a head-to-head basis.
Source: US DOT Form 41, US DOT T100, OAG, US DOT T2, American Airlines.
Notes: FY 2010. Mainline. Assumes minimum staffing for Soutwest, jetBlue, Virgin America, Alaska and AirTran. Data for American based on American's staffing model. United and Continental staffing assume to be 1 less than American on 777 flying. Delta/US Airways staffing assumed to be 1 less than United/Continental on widebody flying. Number of flight attendants from US DOT schedule P10 "Pass Gen Svc Admin" except for Alaska which is US DOT schedule P10 "Other Flt Pers."
