The union representing pilots in Alaska Air Group (NYSE: ALK) He said Tuesday that they have reached an agreement with the airline to avoid pilot licenses.
Alaska and other airlines are making plans to contract this fall due to lack of travel demand. The COVID-19 pandemic has hit airlines hard, but the industry is prohibited from involuntary layoffs until September 30 as a condition of receiving government assistance.
As of October 1, all bets are off, and with demand under pressure again as new COVID cases increase, airlines are expected to drop 30% or more by the end of the year.
Image source: Alaska Air Group.
The Alaska arm of the Air Line Pilots Association (ALPA) in a statement released Tuesday said it has reached agreements with the airline on a series of incentive licensing and early retirement programs designed to address the company’s need to reduce the size without layoffs. The union said the strong participation of pilots in those programs has “effectively avoided” the threat of licensing by the airline.
“We have always maintained that there was a smarter way to address our company’s personnel problems than unlicensed pilots,” said Will McQuillen, chairman of ALPA’s Alaska chief executive council, in a statement. “Finally, our senior management agreed with our point of view and worked with us on the implementation of these programs.”
Airlines and their pilots are looking for ways to be creative as they deal with the ramifications of COVID-19. Due to the global nature of the pandemic, avenues typically available to unauthorized pilots, such as going abroad for work, are not options. Meanwhile, airlines are eager to preserve a period of relative peace with the workforce and retain the flexibility to expand if demand returns faster than anticipated.
Southwest Airlines On Monday, he said more than 25% of its workers had agreed to accept temporary purchases or licenses, increasing the company’s effort to avoid layoffs. AND Delta airlines Last week he proposed reducing the pilot-guaranteed minimum wage in an effort to avoid permits.
