Alaska Air (ALK) Announces Tentative
Deal With Pilots Union
Alaska Air Group, Inc. ALK recently announced that it has successfully proceeded with a tentative deal with its pilots’ union.
The new agreement includes substantial wage increases, working hours flexibility and other related benefits. Per the new contract, Alaska captains are expected to enjoy pay raises ranging between 15% and 23%, based on their seniority. The first officer pay raise would be between 8% and 23%. The contract also includes regulations to protect Alaska from outsourcing routes to other airlines, apart from other benefits.
This new contract has now been forwarded to the airline's more than 3,000 pilots for approval. If it gets approved by Nov 1, 2022, the raises would be retroactive from Sep 1.
Will McQuillen, chairman of the Alaska Airlines Master Executive Council for the Air Line Pilots Association, stated, "Not only does this agreement recognize the crucial role pilots have played in the success of Alaska Airlines, it will also help our airline remain competitive in the industry."
Considering the ongoing airline industry issues of pilot shortages, wage increases, surge in air travel demand and related disruptions to flight schedules, the latest announcement looks encouraging for this Zacks Rank #3 (Hold) company and will help it to stay competitive in attracting and retaining pilots.
We remind investors that earlier this week, Alaska Air’s subsidiary Horizon Air confirmed that its team of more than 700 pilots (represented by the International Brotherhood of Teamsters) voted on a new agreement. The new deal is aimed at helping the company’s pilots and holding back talent as mainline airlines continue to recruit pilots (at record levels) away from regional airlines. The deal also includes issues related to wage increases, retirement benefits plans, commuter policies and instructor benefits. The deal passed by 99% after receiving more than 91% of votes from Horizon pilots. A tentative deal was inked with the IBT on Sep 2, effective immediately upon this latest vote.
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