American Air offers to add $1bn to pending pilot deal

BLOOMBERG

American Airlines Group Inc said changes it offered in a pending contract agreement with pilots would increase the value to more than $9 billion over four years, matching terms of a competitor’s more-lucrative offer.
The proposal adds more than $1 billion to the tentative agreement between the carrier and the Allied Pilots Association, including a “significant” increase in compensation, a ratification bonus and increased life insurance, Chief Executive Robert Isom told pilots in a video. It matches terms of a pending deal at United Airlines Holdings Inc that’s valued at $10 billion over the same period.
The union’s board will review the proposal and determine if it should go to members for a vote, Ed Sicher, APA president, said in a statement to pilots.
The revised plan includes a 21% retroactive bonus and pay rates equal to those at United and Delta Air Lines Inc, he said.
American and the union are scrambling to agree on new terms in time for a vote that’s set to start from July 24. Failure would likely mean a delay in voting or ditching the entire agreement and restarting talks.
“We run a complex business and any changes to what we agreed to — even small ones — may have a profound impact,” Isom said. “Reconsideration of all of these items would take time.”
The two sides committed to negotiate “around the clock” to reach revised terms.