United Airlines and Pilots Union Reach Creative Agreement to Limit Permits

(Reuters) – United Airlines (UAL.O) and its pilots union said Thursday they had reached an agreement on two different packages aimed at reducing involuntary permits in the fall and keeping pilots ready once the demand hit by the coronavirus begins to recover.

US airlines, dealing with a dramatic slowdown in the industry, have warned that tens of thousands of jobs are at stake in October when the US government bailout is over.

To minimize the number of forced cuts, the major airlines have been offering a variety of early departure packages.

United’s agreement with the Air Line Pilots Association International (ALPA) includes an early retirement agreement for pilots 62 and older, as well as a number of different options for pilots to voluntarily reduce their hours or take a leave of absence during which would potentially receive health benefits as long as they continue their training, covered by United.

Bryan Quigley, United’s senior vice president of flight operations, sent the terms to the pilots in a note Thursday night that was reviewed by Reuters.

ALPA President Todd Insler said the deal had “innovative provisions that provide the option (for pilots) to continue to be qualified, allowing for a faster withdrawal once passenger demand returns.”

Airlines are generally reluctant to pilots without a license because of the timely and costly training involved in bringing them back. If a COVID-19 vaccine is developed and demand returns, airlines want to be able to respond quickly.

The airlines expected a recovery before the $ 32 billion in government payroll subsidies for the aviation industry expired in September. Now unions are pressing lawmakers to contribute another $ 32 billion through March to avoid tens of thousands of permits.

Chicago-based United said last week it was sending potential license notices to 36,000 front-line employees based in the United States, or about 45% of the staff, including 2,250 pilots.