American Airlines boosts offer to pilots union as air industry travel woes mount
Travel expert Lee Abbamonte warns that the July 4th travel rush isn't the end of a busy travel year.
American Airlines has announced that it increased the value of the contract offered to its pilots by more than $1 billion to match a deal made by rival United Airlines that threatened to unwind negotiations.
American announced Friday that the improved offer would increase the value of its four-year contract offer to $9 billion. The airline intends to match the pay rates and retroactive pay included in United Airlines’ tentative agreement that was reached on July 15. The deal also includes extended sick leave with a bank of 120 hours and four hours accrued per month and increased life insurance, which rises to $750,000 regardless of age.
Last week, the Allied Pilots Association – representing American Airlines pilots – warned that the ratification of American’s previous contract offer was in jeopardy after United Airlines’ announcement of a deal with its pilots union in mid-July.
UNITED AIRLINES PILOTS REACH ‘HISTORIC’ AGREEMENT IN PRINCIPLE, WITH BIG PAY RAISES, OTHER PERKS
American Airlines increased the value of its contract offer to pilots by $1 billion in an effort to match a tentative agreement made by United Airlines with its union. (Al Drago/Bloomberg via Getty Images / Getty Images)
Before American revised its offer to match its rival, United pilots were on track to make at least 2% more than their peers at American. United Airlines pilots will get pay raises that amount to a cumulative 34.5% to 40.2% over the course of the four-year agreement.
The revised offer by American Airlines to the pilots union includes a ratification bonus, an accelerated 401(k) increase, «medical freedom protections» and several
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