COMPETITIVE COST STRUCTURE

American Airlines is committed to providing fair pay, strong retirement benefits, job protections and professional opportunities to its pilots.

 

Pilot compensation is a complex issue influenced by a number of factors, including:

     •   A pilot’s seniority, experience and qualifications (by aircraft and region flown)

     •   The number of hours pilots fly each month

     •   The aircraft and number of passengers, which affects the revenue earned per flight

     •   The number of pilots the company must keep on “reserve” to fly the schedule

 

Productivity is a critical factor of competitive costs in the airline industry – one each carrier must consider in balancing the number of pilots it keeps in its ranks, pay and pension contributions, and contract provisions that determine a pilot’s monthly flying hours, guaranteed pay, and “scope” rules that may limit an airline’s ability to form partnerships with regional airlines and fly smaller jets on less-traveled routes.

 

Our goal in negotiations is to reach agreement that allows pilots the opportunity to make more money through additional productivity and, at the same time, allowing the company the necessary scheduling flexibility and ability to make smart use of its fleet and pilot resources.

 

Toward this goal, the company has put forward several compensation-related proposals, including:

     •   Additional pay of up to 60 hours for unused Sick time. Read more on the company's Sick
         proposal.

     •   Increasing the monthly maximum flying time to 82 hours/month to allow pilots additional
         flying and earning opportunities. In most cases, this will allow pilots to fly more hours
         without adding days to their schedules. Read more on the company's Scheduling proposal.

American Airlines pilots are now paid at or near the top of the industry based on a number of factors, including hourly wages, premium pay and guaranteed income for hours worked.  Our compensation proposals are designed to maintain or increase our pilots’ overall compensation in exchange for the improved productivity necessary to keeping AA’s overall labor costs in line with our competitors.

 

Source: Includes F41 Accounts (P5.2): FO-Pilots and Copilots (Salaries), FO-Personnel Expenses, FO-Empl. Benefits & Pensions, FO-Taxes-Payroll. Excludes FO-Trainees and Instructors due to inconsistent reporting methodology among carriers. 2009 Block hours based on T100 actual average RT block hours trips by market: <7.5 hrs = 2 pilots, 7.5 hrs to 11.5 hrs = 3 pilots, > 11.5 hrs = 4 pilots.