There is some reason for cheer in the American airline industry. Delta Air Lines pilots have approved a new contract that provides 34 per cent pay increase over a period of four years. A preliminary agreement on the same had been reached in December between Delta and the pilots’ union. Now, the Air Line Pilots Association (ALPA), which represents Delta pilots, said 78 per cent of the carrier’s pilots ratified the agreement.
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The new deal will represent over $7 billion in cumulative increases over the term of the contract. The agreement includes 18 per cent raises on the date of signing, plus a five per cent hike next year and four per cent increases in 2025 and 2026, according to CNBC. The pay will vary based on aircraft type as well as experience of the pilot.
“From the beginning of the negotiations process, we set out to deliver the industry’s best pilot contract to the industry’s best pilots, one that keeps us as a top destination for US aviation careers, and this contract is a reflection of that unwavering commitment,” John Laughter, Delta operations chief, stated in a news release on Wednesday, as quoted by CNBC.
The agreement would give Delta’s approximately 15,000 pilots the edge over other airline companies in terms of total compensation and work-rule improvement.
The deal comes at a time when contract negotiations between airlines and pilots have struggled in the wake of the COVID pandemic. The rising cost of living has raised pilots’ expectations for salary hikes and better schedules, but airlines have been under pressure to cut down costs. While travel demand has rebounded, pilot shortages have kept capacity growth low.
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Delta had started negotiations with its pilots in 2019, before they were stalled by the pandemic. Last year, the carrier’s pilots had voted in favour of allowing the union to authorise a strike when negotiations did not lead to an agreement.
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The deal could spur other pilots’ unions to reach an agreement with carriers like Southwest Airlines, American Airlines and United Airlines. After the Delta agreement was announced, American Airlines said that it hoped to reach a consensus with its own pilots soon.
