American Airlines CEO Robert Isom on Thursday said the carrier has offered its pilots pay raises totaling nearly 17% under a new contract, according to an internal video seen by CNBC. The latest proposal to the pilots’ union, the Allied Pilots Association, comes less than a week after rival United Airlines and its pilots’ union reached a tentative agreement that includes more than 14% in total raises within 18 months, the first major US airline in the industry to get to that point in the pandemic. That agreement faces a vote by United’s pilots that ends in mid-July, however, and it is still not clear whether it has enough support to pass. Earlier this month, Isom said American would make a new offer to the carrier’s roughly 15,000 pilots once the details of United’s deal were released. Its proposal includes a 6% raise at signing and then 5% raises at the start of 2023 and 2024. “United put forth industry leading pay, and we matched that for our team,” Isom said in the video message Thursday, referring to pilot pay rates. The difference in percentages is due to higher pay for United pilots. American’s latest proposal comes as the industry is struggling with a shortage of pilots, particularly at smaller regional airlines. At the same time, travel demand has soared, catching many airlines flat-footed, especially during peak travel periods. Isom said American is proposing other pay increases for training and 50% premium on reassignment, including for reserve crews. There are other incentives such as retroactive pay if the agreement is ratified by Sept. 30, he said. “Getting a deal done quickly will help strengthen our training program and ensure we can continue to grow,” he said.<br/>
oneworld
International Airlines Group said Thursday it had converted options for 14 A320neo family Airbus jets, announced in 2013, into firm orders for 11 A320neos and three A321neos. The aircraft will be delivered in 2024 and 2025 and will replace A320ceo family aircraft in the group's short-haul fleet, the owner of British Airways and Iberia said.<br/>
Japan Airlines Co. is considering replacing its older Boeing Co. 737 short-haul fleet with more modern and fuel efficient models, according to people familiar with the matter. The airline, which operates 45 of the 737 jets with an average age of about 12.5 years, is currently deciding between the 737 Max range and Airbus’ rival A320neo family, the people said, asking not to be identified because the discussions are private. An order could be for anywhere between 30 and 50 of the narrow-body jets, the people said. Deliberations are preliminary and no final decisions have been made, the people said. Japan Airlines didn’t immediately respond to a request for comment. Representatives for Airbus and Boeing declined to comment on confidential discussions with customers. Japan is considering expanding a domestic travel subsidy program to bolster its tourism industry, local media reported earlier this month, even as the country continues to cap overseas visitor numbers.<br/>