Pilot union wants to reopen airline contracts
WASHINGTON (Reuters) - The nation's largest pilot union said on Thursday it would seek to reopen contracts to roll back bankruptcy concessions at UAL Corp.'s (UAUA.O) United Airlines and other U.S. carriers.
John Prater, president of the Air Line Pilots Association, said pilots gave back an enormous amount to help airlines restructure and want their share now that industry profits are returning.
The International Air Transport Association this week projected 2007 profits for U.S. airlines of $4.4 billion after factoring for restructuring expenses.
"The concessionary agreements do not have to continue into the future," said John Prater, the union's new president said at a news conference.
"Frustrations are building when we see management taking their $10-to-$25 million payday," Prater said of executive compensation packages.
He said the union would seek to change work rules and wage scales incrementally and not wait until contracts expire at the end of the decade.
The move would also affect terms for pilots at the old US Airways Group Inc. (LCC.N) , which faced liquidation before it merged with America West Airlines in 2005. Prater said the union would likely approach Northwest Airlines Corp. (NWACQ.PK) and Delta Air Lines Inc. (DALRQ.PK), after they emerge from bankruptcy this spring.
04/05/07 11:27 ET
WASHINGTON (Reuters) - The nation's largest pilot union said on Thursday it would seek to reopen contracts to roll back bankruptcy concessions at UAL Corp.'s (UAUA.O) United Airlines and other U.S. carriers.
John Prater, president of the Air Line Pilots Association, said pilots gave back an enormous amount to help airlines restructure and want their share now that industry profits are returning.
The International Air Transport Association this week projected 2007 profits for U.S. airlines of $4.4 billion after factoring for restructuring expenses.
"The concessionary agreements do not have to continue into the future," said John Prater, the union's new president said at a news conference.
"Frustrations are building when we see management taking their $10-to-$25 million payday," Prater said of executive compensation packages.
He said the union would seek to change work rules and wage scales incrementally and not wait until contracts expire at the end of the decade.
The move would also affect terms for pilots at the old US Airways Group Inc. (LCC.N) , which faced liquidation before it merged with America West Airlines in 2005. Prater said the union would likely approach Northwest Airlines Corp. (NWACQ.PK) and Delta Air Lines Inc. (DALRQ.PK), after they emerge from bankruptcy this spring.
04/05/07 11:27 ET
TC
