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June 21, 2012

More details on American's proposal to the pilots

American Airlines released details of its last proposal to the Allied Pilots Association which the union will continue to discuss next week.

Included in the offer is:

-the company support of the pilots unsecured claim for a 13.5 percent equity stake in the new company when American's parent company, AMR Corp., emerges from bankruptcy

-no pilot furloughs, not the 400 pilot layoffs previously proposed

-four percent raise on the date of signing and then two percent pay raises at the end of year one and two, four and five; and industry pay rate adjustment will be considered in year three of the contract or a two percent increase which ever is greater

-change monthly average hours from 72 to 84 hours

-profit sharing plan that awards employees 5 percent of pre-tax income each year from 2012 to 2017

-increases the number of regional jets that can be flown by third-party carriers

-the termination of the pilot's "B" retirement plan, replacing it with a defined contribution plan. the "A" plan will be frozen

Click here to read the 54-page proposal American is offering the pilots.

And here are letters from vice president of flight John Hale and senior vice president of people, Denise Lynn  that were sent out to American employees on Thursday evening.

-Andrea Ahles


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casual observer

What gives? Wasn't the main selling point of the US Airways so-called agreement that there would be no furloughs? Isn't this what AA is offering in addition to raises, profit sharing, equity stakes, etc. etc? Is the paint slowly peeling away from the APA leadership's stance? If I were a pilot, I would be royally upset at the APA for not allowing to vote because of a superficial axe to grind with management.


Slow down axe grinder its all part of the game.

David Barnes

Of course they have an axe to grind. APA's leadership signed off an a pseudo-agreement with US Airways management and participated this week in a presser. APA leadership must save face and can't risk its members saying they will accept AA's offer. The APA board knows its walking a thin line, but to have to eat crow at this point is not in its game plan. It is sad that AA's pilots have to pay the price for the board's misguided antics.


It sounds like it's actually a better offer than US Airways, and without having to subjugate ourselves to King Doug.

I have to wonder why APA's board won't let the pilots vote on this. A contract with raises, an equity stake and a guarantee of no layoffs is a darn good deal during a bankruptcy.

What is really going on behind the scenes?

APA Pilot

I am an APA pilot, and I certainly am outraged that the APA Board is risking the retirement freeze and year 3 industry wages plus many other enhancements to pursue their pipe-dream of a USAir merger.

The APA Board and national officers who are effectively squandering this opportunity and denying members' right to vote on the deal are in no way expert in anything other than flying airplanes. I don't want, need, or trust them to engineer any major business "deal" like a merger.

The rank-and-file should decide on this temporary agreement, not 16 hobbyists tinkering with the careers of 8,000 pilots.

Thomas One

I am a million mile flyer and also have a large share of my retiremenet in AMR (now AAMRQ) stock. You could say I have been a loyal supporter of the arline and its people. Throughout the dispute with management and the bankruptcy neither the employees or the airlne management showed interest in the arlines company welfare, its shareholders or passengers. Case in point a rather small airline in Dublin Ryanair with very strong management has a market cap of $9billon versus AMR with a value of only $171 million. The world's top airline is a disgrace destroyed by unions and management. Management never talks about shareholders their insiders bailed out quickly and employees dont even bother with service. By your posts one would think the airline was owned by the unions- they give not a damn about the retirees who held their stock.

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