Skip to content
Subscriber Only

American’s Pilots Expose Fragility of CEO’s $1 Billion Labor Bet

  • Holiday scheduling glitch to cost $10 million, JPMorgan says
  • Analysts question Parker’s return on higher pay for employees
 

The aviators’ union warned last week that more than 15,000 flights were at risk of being scrubbed during the busy holiday season after a scheduling snag left many trips without crews.

 

The aviators’ union warned last week that more than 15,000 flights were at risk of being scrubbed during the busy holiday season after a scheduling snag left many trips without crews.

Photographer: Andrew Harrer/Bloomberg
Updated on

American Airlines Chief Executive Officer Doug Parker is investing more than $1 billion to mend tattered labor relations at the world’s largest carrier. A recent spat with pilots is prompting some analysts to question whether he’s getting his money’s worth.

The aviators’ union warned last week that more than 15,000 flights were at risk of being scrubbed during the busy holiday season after a scheduling snag left many trips without crews. American promised extra pay for pilots willing to fly. As customer angst about potential cancellations mounted, the company further sweetened its offer before finally reaching a union staffing deal.