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Tribune News Service
Tribune News Service
Business
David Lyons

Spirit Airlines pilots reach tentative contract, union says

Pilots at discount carrier Spirit Airlines of Miramar, Florida, have reached a tentative contract deal that would give them significant financial gains over the next two years, their union announced Friday.

The deal, which was confirmed by a company spokeswoman, apparently would be effective through the time the carrier is acquired by JetBlue Airways, which has agreed to buy Spirit for $3.8 billion. The takeover requires U.S. government regulatory approval.

A statement by the Air Line Pilots Association from its Washington, D.C., headquarters said the proposed contract would provide “an economic gain of $463 million or 27% over the next two years,”

The union, which will start a road show next week to explain the deal to some 3,100 pilots, claimed it made “no concessions.”

The union said the Spirit pilot leadership voted Friday “to unanimously to send the agreement to the pilot group for membership ratification.” If approved, the two-year agreement would become effective on Jan. 1.

Spirit had no immediate additional comment.

Spirit and JetBlue are operating as separate competing airlines until after their transaction closes. The companies have said they expect to conclude the regulatory process and close their deal “no later than the first half of 2024.”

If the Spirit pilots vote to approve their proposed contract, they would be compensated according to their own pay scale for the agreement’s duration. They have been operating under a five-year deal reached in 2018 that delivered a 43% pay increase at the time.

Unionized pilots at airlines around the industry have been demanding sizable pay raises and better work rules after flying through a COVID-19 pandemic that they say took its toll on their health and economic well-being. Pilot groups at several airlines, including members of the Allied Pilots Association at American Airlines, have demanded better financial agreements as airlines have rebuilt operations that were drastically scaled back during the pandemic.

Earlier this week, Delta Air Lines of Atlanta and its 14,000 pilots represented by ALPA reached a tentative deal that reportedly would provide 34% pay increases over four years and cost the airline $7.8 billion.

Previously, ALPA-represented pilots at Mesa Airlines, Piedmont Airlines and PSA Airlines among others have won pay raises through new contracts.

Spirit, which operates a growing Airbus fleet of 184 planes, lost $36.4 million in its third quarter after encountering weather-related operational disruptions and rising fuel costs.

The tentative Spirit agreement, ALPA Master Executive Chair Ryan Muller said in the union statement, “represents the first step toward building our legacy” after “pilots have endured years of stagnating compensation while negotiating comprehensive pilot contracts.”

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