American Airlines is prepared to match the pay rates and profit-sharing formula that rival Delta Air Lines has provided in its new pilot contract, Chief Executive Robert Isom said on Tuesday.
Isom told American pilots that matching Delta's deal will result in a contract worth more than $7 billion for them.ratified
a new contract that is widely expected to be a benchmark for contract negotiations at rival carriers. The Atlanta-based carrier's new contract provides a 34% cumulative pay increase, a lump-sum one-time payment, reduced health insurance premiums and improvements in holiday pay, vacation, company contributions to 401 and work rules.
To match Delta's deal, Isom said American pilots would receive on average pay increases of 21% in the first year of contract. Total pay increases in the fourth year of the contract deal would be 40%, he said.
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