Given that the more airline competition there is the greater the supply of cheap airplane tickets and cheap vacation packages, travelers should be pleased to hear that Americans pilot union is close to agreeing on a deal that will help the airline emerge from bankruptcy protection.
Final issues include pay parity with pilots flying for other airlines, furlough protection, and rules regarding regional airlines that feed American.
In September American Airlines imposed a series of new work conditions on its pilots which have been met with significant resistance. American claims that the new work conditions are necessary to make the airline competitive. Competitors including Delta Air Lines, United/Continental and US Airways have all cut costs after going through bankruptcy.
American experienced a steep increase in flight delays and cancellations in September as pilots expressed this displeasure with their contract situation. American management accused the pilots of causing the deteriorating situation by filing frivolous reports regarding minor aircraft problems and by calling in sick. The union has denied these accusations.
Long standing disputes between the pilot union and American management were significantly exasperated once the bankrupt airline won the right in bankruptcy court to void the existing pilots contract. Currently pilots are being required to fly more hours that their prior contract allowed and American is allowed to use other airlines to fly more of its flights.
American has stopped contributing to the pilots pension fund during this bargaining process and has proposed terminating it altogether.
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