Originally Posted by
ksweeney
So does this mean that ultimately for the Pilots, beyond the pension cost savings, AA is not going to end up with any of the savings that it said required filing bankruptcy? I may be misreading this but if the pilots are getting raises of 15% over 3 years whatever competitive issues that AA believes it had prior to filing will still be there. Are there work rule changes for pilots or something else that causes savings or has the pilot union successfully beaten Horton in a staring contest?
The offer provides a 4% raise on Date of Signing plus an additional 2% on each anniversary for five years, for a total hourly payrate increase of 14.8% compounded over the term of the agreement.
There are still numerous work rule changes plus scope relief (lots of domestic codesharing plus lots more large RJs) that, combined, give AA a 17% pilot cost savings compared to the original 20% sought by AA in its abrogation demand.
AA had offered a profit sharing component of 15% of first dollar profits, but has revised that down to 5%, with the other 10% re-allocated to the 14.8% raise and other improvements. The offer represents $315 million a year in pilot compensation savings for AA.
In no way does AA's offer represent a "win" for the pilots. AA has thrown a few crumbs to the pilots in the hopes that the APA will agree.