sevenstrollroll,
Here you go:
FOR IMMEDIATE RELEASE
ALLIED PILOTS ASSOCIATION PROPOSES PAY RESTORATION FOR
AMERICAN AIRLINES PILOTS; CITES MEMBERSHIP MANDATE,
DRAMATIC INCREASE IN MANAGEMENT COMPENSATION
‘Inflation has steadily eroded our purchasing power’
Fort Worth, Texas (October 23, 2007)—The Allied Pilots Association (APA),
representing the 12,000 pilots of American Airlines (NYSE: AMR), presented a pay
proposal to the carrier’s management today that is designed to restore the pilots’ lost
purchasing power.
Current American Airlines pilot pay rates are slightly lower than what they were
in 1992, with inflation eroding the pilots’ purchasing power by more than 33 percent
since that time. APA’s proposal calls for adjusting current pay rates to account for post-
1992 annual inflation, as reflected by the Consumer Price Index.
American Airlines management rejected an earlier pay proposal APA’s previous
leadership made in May. Shortly thereafter, the membership elected its current national
officers by the widest margin and with the largest voter turnout in APA history. Upon
taking office, the newly elected leadership commissioned a survey of the membership
regarding the ongoing contract negotiations with American Airlines management.
“Our pilots were unequivocal in our recently concluded membership survey—it’s
time to restore their purchasing power,” said APA President Captain Lloyd Hill.
“Moreover, that erosion accelerated dramatically for our pilots and their families with the
deep concessions we made beginning in 2003.”
Hill pointed out that the majority of American Airlines’ pilots have been with the
airline since the early 1990s, which means that pilots have endured an ongoing decline in
their standard of living for much of their careers with the carrier.
“In sharp contrast to what our pilots have endured, American Airlines
management has given itself what amounts to an exponential increase in compensation
over the same period. What we are seeking for our pilots doesn’t even begin to approach
management’s gains,” Hill said.
American Airlines’ five “Named Executive Officers” (as identified in documents
filed with the Securities and Exchange Commission) have experienced an increase of 469
percent in their total compensation since 1992. For the CEO, the increase has been even
more dramatic. In 1992, American Airlines CEO Robert Crandall’s total compensation
was $1,013,471. Current CEO Gerard Arpey’s total compensation for 2007 will be
$8,344,971—an increase of 723 percent, representing a 560 percent increase in
purchasing power.
“It is well past time to restore our pilots’ purchasing power,” Hill said. “After all,
management compensation has done much more than simply keep pace with inflation. By
any measure, the past 15 years have been extremely lucrative for our airline’s senior
executives.”
For more details regarding APA’s pay restoration proposal and other proposals
the union has made during the ongoing contract negotiations, go to
Home.
Founded in 1963, the Allied Pilots Association—the largest independent pilot
union in the U.S.—is headquartered in Fort Worth, Texas. APA represents the 12,000
pilots of American Airlines, including 2,570 pilots on furlough. The furloughs began
shortly after the September 11, 2001 attacks. Also, several hundred American Airlines
pilots are on full-time military leave of absence serving in the armed forces. The union’s
Web site address is
Welcome to the Allied Pilots Association.
American Airlines is the nation’s largest passenger carrier.
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