Pilots at Hawaiian Airlines have reached a tentative agreement with the airline on a new four-year contract. The proposal includes substantial pay increases, including current industry-leading rates for the carrier's new cargo operations. The pilots, represented by the Air Line Pilots Association, will vote on the latest proposal from January 27th.

The proposed agreement includes an average 32.9% pay increase over the four years and consists of an average 16.6 % increase from the date of signing. It also adds a signing bonus, raises company retirement contributions, creates a new health reimbursement account, and seeks to improve the pilot's quality of life. The chairman of Hawaiian Airlines pilot union, Capt. Larry Payne expressed his gratitude for the successful negotiation process:

“We believe this industry-standard agreement represents a monumental step forward in terms of overall compensation and quality of life gains.

“Hard-fought negotiations between the negotiating committee and the company have now yielded what the [Master Executive Council] believes to be an agreement that accomplishes the goals our pilots set for us when we opened talks two years ago.”

The proposed agreement also offers additional bonuses, financial incentives, and increased schedule flexibility.

New perks for the upcoming cargo operation

The flight deck crew for the airline's new cargo arm will also receive industry-leading pay under the new agreement. The cargo operation begins with a deal with Amazon to operate at least 10 Airbus A330-300s, which will be converted to freighters ahead of commencing operations in 2024. The expected A330F rates will be the highest in the industry and surpass the current rates at cargo carriers, including UPS and FedEx Express.

The shopping giant will acquire up to 15% of Hawaiian stock in exchange for the carrier operating cargo flights on behalf of Amazon. The aircraft themselves will be converted and leased from a third party.

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The deal covers all three aircraft types currently flown by Hawaiian Airlines in addition to the two incoming aircraft. The carrier currently operates 18 Airbus A321-200neos and 24 Airbus A330-200s for long-haul destinations. Hawaiian is also one of the last remaining operators of the Boeing 717, which it uses primarily for intra-island travel. The carrier will also receive 12 Boeing 787-9 Dreamliners between now and 2027.

What is the next step?

The negotiated deal now goes to Hawaiian Airlines' 1,000 pilots for ratification. The voting will begin on January 27th and last for two weeks. If ratified, the agreement will come into effect on March 2nd.

This agreement is not the only one to come to fruition in recent days. Delta Air Lines pilots, also represented by the Air Line Pilots Association, are set to vote on an agreement with Delta for pay increases of up to 30% over four years. If approved, the deal will bring an 18% pay rise on the day the contract is signed, in addition to a 5% increase the following year and two subsequent 4% annual increases in the following years. The deal also includes a one-time bonus of 4% of the pilot's salary from 2020 and 2021 and 14% of what they earned in 2022.

Source: ALPA, FlightGlobal

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  Hawaiian Airlines

  IATA/ICAO Code:

  HA/HAL

  Airline Type:

  Full Service Carrier

  Hub(s):

  Honolulu International Airport, Kahului Airport

  Year Founded:

  1929

  CEO:

  Peter Ingram

  Country:

  United States