American Airlines’ pilots could walk away with 13.5% of the company
Skift Take
American will get what it wants now -- big reductions in costs and flexibility on scheduling and routes -- in exchange for giving up a chunk of the company to a group of its most dedicated employees.
American Airlines' pilots are being asked to give up a lot to help the bankrupt carrier get back on its feet.
But in return, the pilots could end up with a chunk of the restructured airline worth close to $1 billion, industry analysts estimate.
AMR Corp., American's parent company, has offered the Allied Pilots Association a 13.5 percent equity stake in the carrier when it emerges from bankruptcy. The pilots will begin voting Wednesday on the tentative agreement, which includes the equity offer.
[caption id="" align="alignright" width="350"] The cockpit of an American Airlines plane. Photo by Michael Coghlan.[/caption]
While it has become common for pilots unions to receive stock in a restructured airline after bankruptcy, none have been compensated with as large a stake as 13.5 percent, said Bill Swelbar, airline researcher with the Massachusetts Institute of Technology.
"It is quite extraordinary what the pilots and the company agreed to," Swelbar said.
Pilots union
