Flying could become too expensive for ordinary Americans. The expected increase in plane ticket prices is due to two factors: severe pilot shortages and demanding pilot unions.
Estimates suggest that airlines across North America will suffer shortages of around 30,000 pilots over the next decades because the country isn't training enough pilots while others are choosing to retire early.
Oliver Wyman, a management consulting firm, explained that even if the supply of new pilots grows, it's still not enough to "offset a continuing wave of retirements."
At the same time, pilot unions are more determined to have their needs met due to the increased leverage and are able to drive a hard bargain in negotiations with airlines.
To illustrate, pilots working for United Airlines are slated to receive a 34.5 to 40.5 percent pay increase over the next four years. United also has to offer employee benefits such as job security and retirement packages, along with better benefits and work-life balance assurances for their pilots.
American Airlines pilots are also demanding better pay and working conditions to match those of United, which means companies will be forced to increase ticket prices to make up for the shortfall. (Related: America is witnessing DELIBERATE DESTRUCTION of its aviation industry.)
American Airlines reaches updated agreement with pilots
American Airlines has reached an updated four-year tentative agreement with its pilots that is just as good, if not better, than the new deal United Airlines pilots have negotiated.
The negotiating committee of the Allied Pilots Association (APA) is due to take the agreement in principle before its board of directors. Once they gain board approval, the agreement would then proceed to the full APA membership for ratification.
APA and American Airlines management already came to a tentative agreement in May. But the union set its eyes on better terms after United's pilots negotiated a more favorable deal in mid-July.
Once the United contract is ratified, pay rates will increase by 13.8 to 18.7 percent on the date of signing, based on the aircraft type each pilot flies. Rates will then continue to increase gradually within the next years.
With the updated American deal, pay increases for pilots would be retroactive to January rather than May, and rates would be equal to those achieved by both United and Delta pilots.
The deal also changed many other provisions, including those related to 401k contributions, sick leave, life insurance and the number of jump seats on aircraft.
Several of the negotiated provisions depend on United Airlines pilots approving their agreement by the end of the year.
In an emailed statement, American Airlines said it is thankful to the APA for its collaborative work to reach an updated agreement on a four-year contract for the airline's pilots.
"It's a contract we're proud of and one our pilots deserve," concluded the airlines.
Visit Collapse.news for more articles about the impending collapse of the airline industry.
Watch the video below to find out more about an American Airlines Pilot who "suddenly" died during a flight.
This video is from The Resistance 1776 - channel on Brighteon.com.
More related stories:
Southwest Airlines in shambles as thousands of holiday flights canceled, prompting federal review.
Sources include:
Please contact us for more information.