Crazy times we live in …

Associative Press (AP). American Airlines CEO Robert Isom, in an exclusive interview with the AP, stated that the Airline has made an unprecedented request to the Department of Transportation (DOT).

American Airlines has requested that the DOT reclassify the airline from Legacy Carrier to a new classification of Mid-Cost Carrier.

Mr. Isom explained to the AP that the reclassification will more correctly align the Carrier’s product offering to the industry standards. Admittedly, Mr. Isom concedes that the post pandemic product offering has been sub-par to their primary Legacy Carrier competitors, Delta and United.

The changing business model is apparently directly related to the rising cost of labor and the stagnation of ticket prices. Mr. Isom is specifically concerned about the rising labor cost as it relates to their pilots. “We simply cannot afford to pay them on par with what is soon to be the standard Legacy Airline pilot pay, as seen in the latest Delta management and pilot contractual agreement in principle (AIP).” The AIP between Delta management and pilots has been previously reported by the AP and includes significant contractual pay and quality of life improvements. According to the Delta Union Spokesperson, they have almost regained those pay and contractual losses suffered in 2001 due to the September 11th terrorist attack on the U.S. and the following Delta bankruptcy.


This true?