Aviation Industry Updates: December 6, 2022

Delta Pilots Reach Agreement In Principle

• This afternoon, after over three and a half years of negotiations, the Negotiating Committee (NC) reached a comprehensive Agreement-in-Principle (AIP) with Delta management. The agreement will improve the value of our PWA by 45%, and represents over $7.2B of cumulative value increases over the next four years.

• The agreement contains dozens of individual work rule improvements, with upwards of 25% of the value of the agreement dedicated to quality-of-life related items, and no concessions.

CLICK HERE to see the summary of many of the major items in the comprehensive AIP

We Just Got A Pilot With FOUR 121 Checkride Failures Hired At A Legacy

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United Opens LAS and MCO Bases

KEY POINTS:

• United Airlines is slated to open new pilot bases in Orlando and Las Vegas in May 2023, according to a memo sent to crews Wednesday.

• The changes will see the Chicago-based carrier open a pilot base for the first time in more than 20 years. The Las Vegas base will be home to 204 pilots and the Orlando base 300. The Orlando location may potentially include Tampa as well. Both new bases are exclusively for Boeing 737 pilots and will shave off hours from pilots’ commutes to other bases to operate their trips.

• The bases will not become new hubs for the airline. Part of the reasoning for establishing the new pilot bases was not only to shorten commutes for pilots but also to reduce delay times. Plus, outside of the carrier's current bases, thousands of United pilots reside in Florida and Nevada.

• “Additionally, having pilots positioned in more locations throughout the country will help bolster our operational integrity,” Zach Shapiro, the United managing director of flight crew sources, said in the Wednesday memo.

The Points Guy

We Just Got A Pilot With A Gear Up Landing Hired At A Major

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United CEO Says Delta Pilot Contract Will Set Template

KEY POINTS:

• United Airlines (UAL.O) Chief Executive Scott Kirby said a tentative contract agreement between rival Delta Air Lines (DAL.N) and its pilots union would set an industry pattern.

• "It's a rich contract but I think the really good news is it means we'll all get deals done essentially on the same terms and can move forward," Kirby told Reuters on the sidelines of an event in Washington late Monday. Delta struck a tentative deal Friday to give pilots a 34% cumulative pay increase in a new four-year contract.

• "The biggest news for an investor perspective is cost convergence in the industry means that what is different now is all the low cost carriers are going to have come up to these much higher pay rates," Kirby said. "This is going to wind up like oil prices -- it's going to be a pass through."

Reuters

American Cuts Off A New International Destination

KEY POINTS:

• American Airlines' route map is losing an interesting pin.

• The Fort Worth-based carrier filed plans over the weekend to drop service to Paramaribo, Suriname, effective March 1, 2023, as first seen in Cirium schedules and later confirmed by an airline spokesperson.

• American had previously planned to continue flying to the country's Johan Adolf Pengel International Airport (PBM) from Miami on a year-round basis with daily flights during the summer season and five weekly flights in the winter season. American operated a 128-seat Airbus A319 in this market.

• In a statement confirming the move, an airline spokesperson shared that the decision to end service was made after the route did not live up to expectations. "Due to soft demand, American Airlines has made the difficult decision to end service to Paramaribo, Suriname, effective March 1. We’ll proactively reach out to customers scheduled to travel after this date to offer alternate arrangements," the spokesperson said.

The Points Guy

We Just Got A Pilot With 2200 Hours Hired At A Legacy

I don’t know why you haven’t gotten an interview yet… But, if you book a call, we’ve got the resources to figure it out and help you get one ASAP.

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