US Airways pilots approve merger-related agreement
Jim Watson/AFP/Getty Images
DALLAS US Airways (LCC) pilots have overwhelmingly approved an agreement that would result in pay raises if their company merges with American Airlines.
Union president Gary Hummel said Friday that the agreement would give pilots $1.6 billion in considerations over six years.
American close to merger with U.S. Airways
American parent AMR Corp. and US Airways are in advanced negotiations on a merger with an announcement possible early next week, according to people familiar with the private talks.
The US Airline Pilots Association said 75 percent of its members favored the "memorandum of agreement" that details how they would be treated if a merger takes place. The Allied Pilots Association, or APA, at American had already approved a similar agreement.
Hummel said ratification of the memorandum insures that US Airways pilots -- who are paid less than those at American -- "will arrive at the merger as equal partners with APA in pay, benefits and working conditions."
- Airlines cancel more than 4,000 flights ahead of storm
- Union: AA ground workers would get raises from merger
- Sources: American Airlines, US Airways on verge of merging
The deal provides for US Airways pilots to be paid the same as American Airlines pilots and to get an increase in retirement contributions. A captain of an Airbus A330 jet, for example, could see top-scale pay nearly double, to about $300,000 in 2018. First officers, or co-pilots, earn less.
For the most part, pilots from each airline would continue to fly that carrier's current planes and planes on order after the merger.
Popular on MoneyWatch
- TGI Fridays nailed for doctoring booze
- Amy's Baking Company could face legal 'nightmare'
- Reverse cell phone lookup service is free and simple
- How Bernanke's testimony affects investors
- Meat labels getting facelift under new USDA rules
- Top 10 professional life coaching myths
- Help! My boss is promoting the wrong person
- Amy's Baking Company: Post-meltdown PR campaign