Hawaiian Air needs to share record profits with its pilots
Hawaiian Airlines passengers planning to catch a flight in the near future are right to feel uncertain about whether their trip might be canceled given the company’s unwillingness to reach an agreement with its pilots.
What is certain, however, is the pilots’ resolve to achieve a fair contract as their airline earns record profits. The spirit of determination that characterizes Hawaiian Airlines pilots and their union’s efforts here in Hawaii also holds true far beyond the state’s shores.
Recently, Hawaiian Airlines pilots turned out in force for the airline’s Investors Day in New York City. While Hawaiian pilots lined the street outside the meeting holding signs that read “Fully Qualified — Partially Paid,” pilot group leaders inside alerted financial analysts to the risk the company faces due to its intransigence over paying their pilots a fair wage.
The risk is daunting. The operational stability and financial success that is possible for Hawaiian Airlines in 2017 could be compromised if an agreement isn’t reached soon. In addition, the airline will find it tough to attract qualified pilots without a competitive contract to offer candidates. Other companies such as Delta Air Lines and United Airlines have more recently recognized their pilots’ value with contracts that pay them higher market-rate salaries. To stay in the game, Hawaiian Airlines will have to compete for those same pilots.
The pilots’ proposal is reasonable given the strong market for pilots and substantial improvements in other pilot contracts. In fact, the pay rates proposed are lower than new rates at Delta and United. That’s because Hawaiian pilots recognize certain retirement benefits they enjoy are more favorable than those at other airlines. For years, Hawaiian Airlines struggled to succeed financially and its pilots worked for less than their counterparts. The company’s struggles and bankruptcy required years of pilot concessions. Now that Hawaiian is performing better than its competitors, Hawaiian pilots have earned their share of its success.
The Air Line Pilots Association, International (ALPA), which represents the Hawaiian Airlines pilots, is displaying our own firm resolve in helping the pilots get a contract. While the Hawaiian pilot leaders determine their own direction in negotiations, our collective strength as a national union provides expertise, resources and solidarity. ALPA has allocated $2 million to assist the pilots in preparing for a possible strike.
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Passengers and investors should make no mistake: management’s refusal to recognize its pilots’ integral role in the company’s success now and in the future has left pilots with few options. The federal government’s decision to discontinue mediation heightens the uncertainty that already exists. Passenger concerns about a possible legal strike are well founded. The actions of the Hawaiian Airlines management team in the next weeks could affect the company for decades.
The seriousness of this situation should not only attract the attention of passengers, but also of Hawaii-based businesses, Hawaiian Airlines’ board of directors, as well as federal and state government and tourism officials. It is bad business for the company to wait any longer to complete a contract with a key employee group. No logical reason exists for failing to compensate Hawaiian Airlines’ pilots at the same level as their counterparts at other airlines. The company pays market rates for aircraft and fuel. The airline should also pay market rates for its pilots.
For Hawaiian Airlines pilots and their national union, this will be a fight that continues until we have an agreement. As observed by the financial services company, the Motley Fool, in its recent “Hawaiian Airlines Is Firing on All Cylinders” report: “Big pilot pay raises are a question of ‘when,’ not ‘if.’”
Capt. Tim Canoll is president of the Air Line Pilots Association, International.
21 responses to “Hawaiian Air needs to share record profits with its pilots”
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What a joke! If pilot then why not every steward, mechanic and dishwasher? If all get raise then each passenger just give wallet to the UNIONS! So how much an hour is flight captain making??
After the airline going bankrupt twice it is about time the battered shareholder share in the profits. The employees aern enough already!
It’s OK if they go bankrupt again, the state will just bail them out again with taxpayer money. Funny thing is when Aloha needed help the state said no, maybe no connections or not enough campaign contributions.
Has anyone noticed how ‘slick’ the check-in process is for HAL? They will tell you that you’re too late, and to book another flight, so they can charge you a change fee. Then when you show them that you are not too late, and make a big hu-hu, they will print your boarding pass and let you proceed to the gate. Profit shibai! Same with the baggage and on board. I’ll let someone else explain the scam going on with that…
If a steward screws up, you get pasta instead of chicken. If the pilots screw up, you die.
Hawaiian Air and its pilots will reach a fair deal for everybody. If either party gets too greedy and Hawaiian is grounded and/or fails, their customers will just move on to other airlines. It’s a very competitive industry and there are many airlines to choose from out there.
HA pilots rightfully deserve their raise and everyone knows it. As a customer that frequently flies HA for personal and business several times a month, I’m as concerned as anyone about HA’s ability to sustain Operations if pilots strike. I’m always curious why people complain about these pilots going on strike. It’s as if they didn’t read the article at all?!?!
Sad to say airline pilots actually think if one airline gives their pilots a pay raise then every other airline should do the exact same. Undeserved or not, all they want is more money.
The SA Cub Reporter who wrote this piece failed to do their due diligence in comparing compensation levels of all airlines. Failed to look at promotion speed, medical, pension and bonus payments, airline debt, how all the other airline employees are doing.
Not to worry. The utterly clueless pilots also failed to do their due diligence. Their motto is “Gimmee, Gimmee, Gimmee more.” Laughable how backwards some people can be.
You need to read and comprehend before you make dumb remarks. tthis was an opinion piece written by a pilot.
I found it interesting that Capt. Canoll didn’t indicate what the pilots current earn nor what he considered a fair wage. Could it be that he was afraid of the public reaction?
“everyone knows it”
i) how would you even know this? everyone?
ii) the letters here seem to indicate that you are wrong
IRT pilot16: for over 25 years I only fly Hawaiian (like buy local) 3 times a year. zero complaints, only once not on time. you are on wrong page, this section for TROLLS only on any issue! Trolls will go out of their way to make you regret your comments.
Airlines have been a bad stock investment for years. Income is not stable nor predicted. As soon as they start making money, the unions want MORE. After that, the huge cost they have in fuel–if oil prices go up, they lose money and the unions don’t take a pay cut. The article left out many details–how many hours per month do the pilots work? People who work 8 hours a day would be amazed!!!
Hawaiian Air stock went from $25 a year ago and now is $59. Not exactly a bad investment.
Hawaiian Air is price gounging, creating hardship for local families.
It would be helpful if the write disclosed how much we’re talking about
Funny thing is I just booked my spring trip with my family of 8 on Alaska because I was worried about this issue. Hawaiian was cheaper and I am a Pulani Platinum member but with family you cant take a chance.
If the pilots want to make more money, and they believe in their company – let them buy Hawaiian Air stock. It is the fair way for them to profit from their efforts and is a win win.
Anyone can buy the stock, I guess employees everywhere should pay for their own raises?
Yes, of course they should, by; hard work, good ethics, attention to performance and productivity AND by earning a raise by creating wealth for the shareholders. In this case, it is America, the pilots can always find another airlines to fly for if they want more money. Or, as I posted, they can buy the stock and allow it to rise with their investments of time and effort. Maybe if they were treated as individuals and not as unionized drones they could get a raise on the individual basis and not be held down by collective bargaining where the performing and the underperforming get the same treatment.
Is there a reason this threat was written by a Delta Air Lines pilot and not a pilot from Hawaiian?