Pilots will vote on new offer from American Airlines

By Andrea Ahles

aahles@star-telegram.com

FORT WORTH -- American Airlines pilots are heading back to the polls.

For the second time this year, pilots will vote on a tentative contract with the Fort Worth-based carrier that includes pay raises and a 13.5 percent equity stake in the restructured airline in exchange for broader code-sharing deals with other airlines.

But the latest agreement also includes improved pay for flying new midsize aircraft, as well as limits on the use of regional aircraft.

On Friday, the Allied Pilots Association board of directors voted 12-4 to send the tentative deal to pilots for a ratification vote.

Voting will be conducted electronically from Friday to Dec. 7.

"I'm convinced we have obtained as much as possible in our current circumstances," said Keith Wilson, the union's president. "It is most definitely a path to a strong industry-standard contract."

American spokesman Bruce Hicks said the airline is pleased that the union is putting the agreement to a vote.

"We worked hard in concert with the APA's negotiating committee to structure an agreement that addresses the priorities identified by APA as most important to our pilots while staying within the same cost savings target that we required from all other employee groups," Hicks said.

"We are confident our pilots will carefully consider the terms of the agreement as they cast their votes over the next few weeks."

The pilots are the only union at American that has not agreed to a new cost-cutting contract.

Mechanics, flight attendants and other work groups have already signed contracts while the carrier's parent company, AMR Corp., has been under bankruptcy protection.

In August, the pilots soundly rejected an offer from American, with 61 percent voting against.

After that, union President David Bates resigned and U.S. Bankruptcy Judge Sean Lane ruled that American could reject its pilots contract and impose work rule changes that the carrier said were necessary to restructure.

The differences between the new agreement and the August offer include:

Moving the Airbus A319 and Boeing 737-700 into the same pay group as Boeing 737-800s. The pilots union says that's a $50,000 annual pay difference.

Regional aircraft are limited to 76 seats with an 86,000-pound weight limit, and the regional feed aircraft are limited to 65 percent of American's mainline narrow-body fleet count.

An improvement in the midcontract salary adjustment formula after the third year. In some scenarios, it could increase a Boeing 737-800 captain's pay by 17 to 24 percent.

The items that remain the same include:

A 4 percent raise on the date of signing, then pay raises of 2 percent after years one, two, four and five, with a midcontract adjustment in year three.

A 5 percent first-dollar profit-sharing program.

A 13.5 percent equity stake in the new company when it emerges from bankruptcy.

Furlough protection for pilots.

Wilson said pilot approval of the contract would not change the union's support for a potential merger between US Airways and American.

The carriers presented contrasting plans this week to the unsecured creditors committee -- for a merger and for a stand-alone emergence from bankruptcy.

Also Friday, attorneys for the US Airline Pilots Association asked the Bankruptcy Court for access to unredacted court filings related to a possible merger between American and US Airways.

USAPA, which represents US Airways pilots, said the union has not been given "critical information" that would help ensure a "fair and effective merger."

"Fundamental fairness requires that USAPA be given equivalent information to other interested parties in evaluating the economics and labor issues that will govern the post-merger entity for which its members will be flying," the filing said.

"As this Court has recognized, labor peace will be important to the resulting airline, and by providing USAPA with the information it needs to analyze and negotiate effectively with respect to the post-merger airline, the discovery sought will assist in achieving that goal."

A hearing has been tentatively set for Dec. 10.

Andrea Ahles, 817-390-7631

Twitter: @Sky_Talk

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