AirTran Airways: Union Chiefs Hedge Backing on Pilot Deal

Leaders of AirTran Airways' pilots union gave a "qualified endorsement" to a tentative contract that would boost pay by more than 5 percent --- and put it "squarely ahead of" rates for pilots flying similar-sized planes at archrival Delta Air Lines, the union says.

The tentative deal now goes to AirTran's 1,500 pilots for a ratification vote next month.

Also Wednesday, AirTran announced a new order for 15 new Boeing 737s to be delivered in 2011 and 2012. At list prices, the order is worth about $850 million.

It follows a 100-plane order in 2003 that has fueled the discount carrier's rapid growth in recent years. Atlanta's second-largest airline, AirTran now operates 45 Boeing 737s and 87 Boeing 717s.

AirTran had slowed new plane deliveries last fall. But the airline, which held its annual shareholders meeting Wednesday in Williamsburg, Va., said the additional planes are needed to continue long-term growth.

The pilot deal came after two-plus years of talks. National Pilots Association President Allen Philpot said it should also boost AirTran's bid to acquire Milwaukee-based Midwest Airlines, which Midwest management is resisting.

AirTran pilot pay would be "way above Midwest folks" under the new deal, said Philpot, as well as ahead of Delta pilots flying similar equipment.

An AirTran captain with 12 years' seniority flying an average of 83 hours a month will make almost $160,000 a year vs. $152,000 under the current contract, the union said. A co-pilot with seven years at the company will see a pay boost from about $78,000 to $83,000.

Delta pilots endured two rounds of steep pay cuts and other concessions during the airline's recent trip through bankruptcy court.

Delta captains flying smaller jets like those at AirTran now make about $129,000 a year, while co-pilots are paid about $87,000, said Kit Darby with Air Inc., an aviation career service in Atlanta. Philpot said AirTran pilots will also get signing bonuses of roughly $3,000 to $7,000 each and see other improvements, including more generous sick pay and retirement benefits.

Still, he said the union's six-member board gave only a provisional approval after more than a day of deliberations because the union wants the company to give clearer definitions of scheduling rules and other terms that have caused headaches under the current contract.

He said he hopes to get the company's answers this week and to schedule a vote within two weeks.

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