Summary of APA-American Airlines Pilot Agreement in Principle

The Allied Pilots Association has shared a list of selected agreement highlights from the ongoing American Airlines pilot contract negotiations.

Helwing

Villamizar

May 21, 2023

DALLAS — On May 18, 2023, we reported that the Allied Pilots Association (APA) and American Airlines (AA) were able to reach an understanding in principle on a number of outstanding financial issues, including pay rates.

These agreements complete previously agreed-to items, such as improved work rules and scheduling changes that prioritize operational integrity and quality of life. In the upcoming days, the APA will release a high-level summary and offer more information. However, as the pilot union proceeds with this process, it has shared the ensuing list of selected agreement highlights to provide some of those specifics.

The following bullet points, which we share ad verbum, are provided for informational purposes only, as they do not fully describe the agreement's changes and are not all-inclusive.

https://airwaysmag.com/american-pilots-ok-contract-draft/

Summarized Highlights

Note: All “May 2” dates are based on an Aug. 1, 2023, ratification that will change if the agreement is not ratified Aug. 1.

  • Duration – 4 years; Amendable date: Aug. 1, 2027
  • Back Pay – (based on eligible earnings)
  • 2020: 4%
  • 2021: 4%
  • 2022: 14%
  • 2023: ~21% (3 months preceding DOS (thus effective May 2, 2023)
  • Pay rates that meet or exceed Delta pay rates:
  • (DOS ~21% increase)
  • May 2, 2024: 5%
  • May 2, 2025: 4%
  • May 2, 2026: 4%
  • May 2, 2027: 3% Amendable year raise
  • Increase of 401(k) contributions increase to:
  • 17% on May 2, 2024
  • 18% on May 2, 2026
  • Realign pay step date (pay longevity) to date of hire for all pilots who have not reached 12th year pay.
  • Establish a Market Based Cash Balance Plan.
  • Sick sell-back – or – Retiree Health Reimbursement Arrangement (RHRA) option for pilots at retirement at 66% of the value of accrued sick bank (up to $200,000).
  • Vacation year 2024/2025 and beyond: 4:35 pay per day.
  • Vacation year 2025/2026 and beyond: 4:00 credit per day.
  • Increase of vacation accrual to 35 days at 19 years of service.
  • Long-haul narrowbody (NB) override: CA $8.00/FO $6.00 on all NB flying to Europe, South America (south of the equator), and Hawaii.
  • International Override: CA $6.50/FO $4.50 (includes Canada).
  • Improved profit sharing to the Delta formula (10% up to $2.5B pre-tax profit, 20% for anything above).
  • Increase training pay to 5:00 per day.
  • Increase (long course) training pay for Initial, Upgrade, Transition to 3:05 per day.
  • Holiday pay for nine (9) holidays of an additional 5:15 for each designated holiday duty touches (includes simulator training, DHD’s to/from training, OE, and CKP).
  • Deadhead (DHD) pays greater of scheduled or actual if pilot on aircraft.
  • Jumpseat: Captain may coordinate to account for expected taxi fuel burn to offset jumpseat occupant.
  • Pairing Construction Limits:
  • 1- and 2-day pairings: minimum of 20%
  • 4-day pairings: average maximum of 38% in a rolling 12-month period, max 43% in any month
  • 5-day pairings: average max of 8% in a rolling 12-month period, max of 10% in any month
  • Elimination of ACARS use for scheduling purposes.
  • Newly developed pilot-centric Electronic Communication System (ECS).
  • No DHD prior to redeye flight segment on allocated sequences.
  • 2:00 hours pay, no credit for sequences that release between 0000-0159.
  • Development of graduated premium scale:
  • 50%, 75%, 100%
  • Movement of pilot DFP only with pilot consent (no moveable DFP).
  • Adjustments to reserve assignment system utilizing buckets and seniority.
  • Company may not search or schedule reserve pilot to fly in the lineholder month.
  • Reserves reassigned will be paid in accordance with the reassignment pay provisions.
  • If a reserve pilot is scheduled into a DFP (no later than noon), the pilot will receive 5:15 pay/no credit (above guarantee) and the DFP must be restored within the current month; if the DFP cannot be restored (e.g., remainder of month consists of only DFPs), or the pilot elects to not have the DFP restored, the pilot will receive an additional 5:15 pay/no credit (above guarantee).
  • DFP trading via TTS-like system with transparency and conditions.
  • Long Call increased to 14 hours outside of DOTC.
  • Sit rig to pay for all sit time, including due to delays, reassignments, and reserve assignments, for all block-in to block-out time in excess of 2:30
  • ALV (Average Line Value) window reduced to 74-82 hours, with conditional flex up.
  • Reassignments will pay 50% premium for segments in the current/first duty period of a reassignment and 100% premium of all segments in subsequent duty period until the pilot is returned to original sequence or domicile.
  • Pilot shared sequences implemented at DOS.
  • Sequence Protection, Recovery Obligation, and Replacement Flying improvements that increase pilot optionality.
  • Adjustments and protections surrounding NB Split Duty Pairings.
  • Min pay rig of 7:45
  • Max 2 flight segments (1 outbound, 1 inbound)
  • Max total scheduled block time: 4:15
  • Check Pilots
  • 6.0-hour min day including schoolhouse work.
  • 20% override for all X-Type schoolhouse work.
  • 15-day standard month (Company can schedule up to 17): 16th day and greater at overtime (additional 2.5 hours/day above 15 days).
  • X & L Type CKP paid 12th year pay for what can hold in 4-part bid status.
  • Create Line Check Pilot (LCP) position.
  • LCP bid with PBS
  • 25% override pay for all Flight Standards work performed.
  • Create Instructor Pilot (IP) position.
  • IP paid highest bid status can hold capped at 12th year WB FO.
  • 15% override pay for IP work performed.
  • Minimum of 4 vacancy bid awards annually.
  • Long Term Disability (LTD):
  • New LTD
  • Monthly Benefit: 50% of Pre-Disability Earnings, no cap, fully pensionable.
  • Removal of all offsets.
  • Reduce elimination period from 90 days to 60 days.
  • Imputed Income Option: annual election would allow LTD benefits to be “tax-free.”
  • Improvements to Existing LTD Plans
  • Increase monthly benefit by 30%.
  • Remove ALL remaining offsets.
  • Pilot on LTD and employed by AA as a Sim-P may continue to receive current LTD benefit.
  • Life insurance increase to $500,000.
  • FAA first Class Medical reimbursement of up to $278 or $457 with EKG.

The APA says the Negotiating Committee's agreed-to items will be detailed in a future document.

Additionally, the full contractual language will still be drafted by said Committee and presented to the Board of Directors as a proposed tentative agreement (TA). Following further discussion, the Board will decide whether to submit the proposed TA for approval by the membership.

Additional information and comparisons will soon be available on the APA Contract 2023 website Stay tuned to Airways to be informed of the facts as they become available.

Featured image: ATP American Airlines Cadet Pilot Training