Tag Archives: American Airlines

American’s Doug Parker and Robert Isom issue a letter to the employees on pay

Fellow Team Members:

Today, we are excited to make an announcement that reinforces our commitment to building a foundation of trust at American.

When we merged, we committed that American Airlines team members would be compensated in line with their peers at other airlines. Committing to “pay in line with our peers” is difficult to define in an industry like ours with complex contracts and work rules. American generally has contractual work rules and scope clauses that require us to employ more team members than our competitors, and those add costs to the airline. But we also know that base pay rates are a very visible and meaningful indicator of relative compensation, so we set out to meet our commitment by setting American’s base pay rates at the top of the industry.

With each joint collective bargaining agreement (JCBA) reached, our team has had the highest pay rates in the industry at the time of the signing. For groups who have not reached a joint contract yet, like those represented by the TWU-IAM Association, we implemented pay increases providing the highest average hourly pay rates in the business, even though the other terms of the JCBA have not been resolved yet. These actions have increased the average pay per represented team member by more than 39 percent in the three years since our merger closed.

But as our industry has rapidly evolved and pay increases at other airlines have accelerated, some of our colleagues have fallen behind their peers at other airlines in base pay rates. And, unless their current contracts are modified, they’ll remain far behind for more than two years. Two groups specifically fall into this category today: Our pilots and flight attendants both ratified new five-year contracts in late 2014/early 2015, well in advance of some significant pay increases at our two largest competitors. Today our pilot hourly pay rates are approximately 8 percent lower than the industry’s highest rates, and our flight attendants’ hourly pay rates are approximately 4 percent lower. Absent any action, these gaps would remain at similar levels until those contracts become amendable in December 2019 for flight attendants and January 2020 for pilots.

This doesn’t feel right for the new American, and it doesn’t feel consistent with our commitment. As one of our pilots said after a recent town hall, “We all understood that we would be leapfrogged by other carriers mid-contract, but no one expected this. It is just too much for too long.”

We agree. While the commitment was met when the contract was signed, we never anticipated this large of a gap for this long a period, and we don’t like that it exists, contract or not. Therefore we intend to work with the unions to adjust the hourly base pay rates of all American pilots and flight attendants to levels that are equal to the highest rates currently in place at either Delta or United. We cannot unilaterally implement these increases – APA and APFA must agree to any contractual changes. Because we are not requesting other contractual changes, we do not expect disagreement. If they agree, these changes could be effective as soon as the May crew bid period.

The rest of our contract team members are not affected at this time, either because your pay rates remain at or near industry-leading levels, as they were at the time your JCBAs were reached, or in the case of the TWU-IAM Association, we are still negotiating a JCBA. Specifically for those negotiations, in recent weeks we’ve had productive executive sessions in Washington, D.C., with the assistance of a federal facilitator. And when those talks conclude, our contractual base pay rates will be industry-leading. Regarding our non-contract team members, we assess the market annually and attempt to ensure our compensation is always in line with our competitors, including airlines and other large companies.

But make no mistake: This is a program for everyone at American and these adjustments reflect a real philosophical change that is an important trait of the new American. As we move forward, if we see sizable discrepancies in pay rates between our team members and other major airlines and our contracts are still years away from their amendable dates, we will work to address those discrepancies. Today’s news is not about buying trust because we all know trust cannot be purchased.

Today’s news is about doing the right thing and doing so not because we are contractually required to or because we are locked in a contentious contractual battle. We must continue moving past the days of discontent as we build a new American where team members trust each other and work together with our customers’ care in mind.

We also know pay does not build culture – we have made great progress there but have more work ahead and we must continue to work together to improve the lives of our frontline team members. That work will continue. Today’s action is an important step along that path and we are pleased to be part of an organization that has the courage to take steps like this. We thank the American Airlines Board of Directors and our investors for their long- term focus and their appreciation of the value of supporting our team.

Most importantly, thanks to each of you for all you do for American. Our customers are counting on us to validate the trust they place in us each time they step onboard one of our aircraft. Thanks to the greatest, most professional team in the business, they are always in good hands. It is an honor to work with and for each of you.

Doug Parker Robert Isom Chairman and CEO President

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American begins a strategic relationship with China Southern Airlines

China Southern Airlines Boeing 787-8 Dreamliner B-2733 (msn 34927) LHR (Antony J. Best). Image: 921994.

American Airlines on March 28, 2017announced it has committed to make a $200 million (US) equity investment in China Southern Airlines, creating a strong foundation for a long-term relationship between two of the world’s biggest carriers. China Southern is the largest airline in China and is the ideal carrier for American, the largest airline in the world, to build a relationship within this critically important market.

 

China Southern’s primary hub is located in Guangzhou (CAN) with the majority of its transpacific flights positioned there, while American flies to Beijing (PEK) and Shanghai (PVG) from its hubs in Chicago (ORD), Dallas Fort Worth (DFW) and Los Angeles (LAX). The carriers are planning to give travelers not only the amenities, features and the products that they want at different price points, but also a bigger network that serves the markets to which they want to travel.

Later this year, the two carriers expect to begin codeshare and interline agreements that will give customers access to many more destinations in China, as well as North and South America. American customers will be able to access nearly 40 destinations beyond Beijing and more than 30 destinations beyond Shanghai. China Southern customers will gain access to almost 80 destinations beyond LAX, San Francisco (SFO), and New York’s Kennedy Airport (JFK) in North and South America. The expected codeshare routes are anticipated to include the ability to earn and redeem AAdvantage® Miles, through-bag checking and the ability to book travel on a single ticket. The planned routes operating under the interline agreement are anticipated to include through-bag checking to the traveler’s final destination.

American currently offers daily service from DFW to Hong Kong (HKG), PEK and PVG; LAX to HKG and PVG; and ORD to PEK and PVG. All flights to PEK and PVG are operated on the airline’s state-of-the-art Boeing 787-8 Dreamliner (below), while its HKG flights are operated using its flagship Boeing 777-300. American also has Chinese-speaking flight attendants and offers fully lie-flat seats in first and business class cabins on all of its transpacific flights between China and the U.S.

American Airlines Boeing 787-8 Dreamliner N807AA (msn 40625) LAX (Michael B. Ing). Image: 933327.

Above Copyright Photo: American Airlines Boeing 787-8 Dreamliner N807AA (msn 40625) LAX (Michael B. Ing). Image: 933327.

American Airlines aircraft slide show:

Top Copright Photo: China Southern Airlines Boeing 787-8 Dreamliner B-2733 (msn 34927) LHR (Antony J. Best). Image: 921994.

China Southern Airlines aircraft slide show:

American Airlines takes delivery of its first Boeing 787-9 Dreamliner, to go into service on October 14

american-787-9-n820al-13grdaalr

American Airlines on September 13, 2016 took delivery of the pictured Boeing 787-9 Dreamliner from North Charleston, SC. The The first 787-9 is registered as N820AL (msn 40639).

The new type will be introduced domestically on October 14 between Dallas/Fort Worth and Los Angeles.

According to American, the 787-9 will make its debut international flight between Dallas/Fort Worth and Adolfo Suárez Madrid–Barajas Airport (MAD) on November 4. The aircraft will also operate between DFW and São Paulo–Guarulhos International Airport (GRU) beginning on November 4.

Photo: American Airlines.

AG Aircraft Color Prints 6.4.11

American Airlines announces the first Boeing 787-9 routes

 

American Airlines tail LHR (SPA). Image: 925894.

American Airlines will offer inaugural service with Premium Economy seating on its first Boeing 787-9 Dreamliner.

The 787-9 will make its debut international flight between Dallas/Forth Worth and Adolfo Suárez Madrid–Barajas Airport (MAD) on November 4, 2016. The aircraft will also operate between DFW and São Paulo–Guarulhos International Airport (GRU) beginning November 4, 2016. Customers can start booking 787-9 flights beginning July 10.

Schedule: DFW-MAD MAD-DFW

Departs DFW at 5:45 p.m. Departs MAD at 12:20 p.m.
Arrives at MAD at 9:55 a.m. (next day) Arrives at DFW at 4:40 p.m.

DFW-GRU GRU-DFW

Departs DFW at 7:00 p.m. Departs GRU at 10:55 p.m.
Arrives at GRU at 7:05 a.m. (next day) Arrives at DFW at 5:15 a.m. (next day)

Aircraft Configuration

The 787-9 features:

30 fully lie-flat, all-aisle access Business Class seats arranged in a 1-2-1 configuration
21 Premium Economy seats in a 2-3-2 configuration
27 Main Cabin Extra seats with up to 6 inches of additional leg room in a 3-3-3 configuration
207 Main Cabin seats arranged in a 3-3-3 configuration

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American takes delivery of the first Alabama-built Airbus A321

American takes delivery of the first Alabama-built Airbus A321

Copyright Photo: American Airlines Airbus A321-231 WL N105NN (msn 5904) LAX (Michael B. Ing). Image: 925666.

The first delivery of an A321 aircraft (N162AA) from the Airbus U.S. Manufacturing Facility to American Airlines took place on May 17, in Mobile, Alabama. On hand for the occasion were executives from Airbus and American Airlines and representatives of the more than 350 employees at the facility.

Airbus announced its commitment to build a single-aisle assembly line in Mobile, Alabama in 2012, and less than one year later, broke ground on the $600 million facility. The ceremonial inauguration of the plant took place in September 2015. The aircraft delivered today, an American Airlines A321, successfully had its first flight on April 19, 2016.

Airbus anticipates delivering four aircraft per month from the Mobile plant by the end of 2017. The initial deliveries will all be A320 Family aircraft with the Current Engine Option (CEO), but will begin transitioning to New Engine Option (NEO) derivatives in late 2017.

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American Airlines to early retire its Embraer 190 fleet

Embraer 190 fleet to be early retired by the end of 2019

Copyright Photo: American Airlines Embraer ERJ 190-100 IGW N950UW (msn 19000106) CLT (Jay Selman). Image: 403042.

American Airlines (Dallas/Fort Worth) management has decided to early retire its fleet of 20 Embraer 190s at the end of 2019. The E190s are operated mainly on Shuttle routes from its Philadelphia base. The company concluded the fleet was too small to economically maintain.

American has also decided to begin retiring its aging fleet of nine Airbus A330-300s in 2017. The A330-300 fleet should be retired by the end of 2018.

American is also reducing its Boeing 767-300 ER fleet to 17 aircraft by the end of 2018.

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Three U.S. airlines to apply for Cuban scheduled authority

The United States and Cuba have agreed to restore regularly scheduled airline services with a new bilateral agreement. American Airlines, JetBlue Airways and United Airlines have already stated they will seek service rights to serve Havana and other cities on the island. Charter flights will continue for now and there was no timeline given for regularly scheduled flights.

This will also mean the return of Cubana (Havana) to the USA.

In the past, when there was a bilateral agreement, Cubana along with Pan Am, National Airlines and Delta Air Lines previously flew between the two countries.

American Airlines issued this statement:

American Airlines 2013 logo

American Airlines issued the following statement on the United States and Cuba reaching an arrangement that will permit scheduled air service between the two countries for the first time in more than 50 years.

“Today’s announcement is great news for our customers as it brings us one step closer to connecting the U.S. and Cuba with scheduled air service,” said American’s chairman and CEO Doug Parker. “As the leading carrier to the Caribbean and the leading U.S. airline to Cuba, we look forward to establishing scheduled service to Cuba in 2016, from Miami and other American hubs. We appreciate the Administration’s efforts and the hard work of the U.S. negotiators to reach this arrangement.”

Charter Service to Cuba

American has operated charter service to Cuba since 1991 with flights from Miami, Tampa and Los Angeles to five Cuban destinations: Camaguey (CMW), Cienfuegos (CFG), Havana (HAV), Holguin (HOG) and Santa Clara (SNU). American has been the leader in the U.S. to Cuba market for nearly 25 years. This year, American will operate approximately 1,200 charter flights to Cuba, more than any other U.S. carrier and a 9 percent increase from 2014.

On December 12, American expanded its reach to Cuba with the launch of new charter service, offering customers travel options between Los Angeles International Airport (LAX) and Jose Marti International Airport (HAV) in Havana, and providing the only nonstop service between the West Coast of the U.S. and Cuba.

Next Steps

As a result of today’s announcement, American expects to submit a U.S.-Cuba service proposal to the U.S. Department of Transportation and hopes for timely approval of its proposal to enable American to introduce scheduled service as soon as possible in 2016.

JetBlue Airways issued this statement:

JetBlue logo-2

JetBlue applauded a landmark civil aviation agreement that will allow scheduled air service to resume between the U.S. and Cuba.

JetBlue will submit its application for new routes to the U.S. Department of Transportation once the airline has fully reviewed terms of the agreement and has clarity on the process and timing of assigning frequencies to U.S. airlines.

Depending on the number of flight frequencies available to the airline, JetBlue is eager to offer affordable service from numerous U.S. cities to multiple destinations in Cuba.

“We hope the next dot on our Caribbean route map will be Havana, and possibly even other destinations in Cuba,” Laurence said. “Cuba is the perfect addition to the JetBlue network. Over the last several years, we have become a leader in the Caribbean with our position as the largest airline in markets like Puerto Rico and Dominican Republic and an expanding presence across the region.”

JetBlue first began operating charters to Cuba in 2011 and now flies to Havana and Santa Clara from New York, Fort Lauderdale-Hollywood, and Tampa. JetBlue plans to continue operating charter flights with its partners as the process of assigning frequencies for scheduled service flights proceeds.

United Airlines issued this statement:

United logo-1

United Airlines issued the following statement after the U.S. and Cuban governments agreed to reinstitute scheduled air service between the two nations.

“United Airlines congratulates the U.S. and Cuban governments on reaching this historic arrangement, which will strengthen ties and economic development between the two countries. We look forward to offering service between our global gateways and Cuba as soon as we have approval to do so.”

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