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American Airlines faces operational challenges amid contentious negotiations with flight attendants

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American Airlines faces operational challenges amid contentious negotiations with flight attendants
Research
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Gary Leff Chief Financial Officer | View from the Wing

American Airlines is embroiled in prolonged negotiations with its flight attendants, whose contract became amendable four and a half years ago. Since January 2019, flight attendants have not seen an increase in their wage formula, resulting in an approximate 20% erosion in the value of their wages.

The union representing the flight attendants has expressed a desire to strike for over six months, but government intervention has prevented this action. Despite the company's offer of immediate wage increases while negotiations continued, the union refused. This has led to growing frustration among many flight attendants.

A frequent flyer recently shared an experience involving an American Airlines flight attendant who refused to provide pre-departure service due to ongoing contract disputes. The passenger recounted: "I’m on the ground right now about to leave on [Chicago O’Hare to St. Louis]. I’m in [first class seat] 1B. We’re on time and will likely push early. Two [flight attendants] are chatting and one proudly declares, 'I don’t do pre-departures anymore because of the contract.' She went on to complain about a [flight attendant] she worked with a few days earlier who did one, and she apparently didn’t like that."

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The passenger noted that neither of the flight attendants were wearing name tags and speculated that this might be intentional. They added: "I know the [flight attendants] don’t care, and [American] probably doesn’t care either, but that sure does make me mad. If I declared my unwillingness to do my job in front of customers, I’d certainly get fired."

This incident is part of a broader trend where getting flight attendants to serve pre-departure beverages has been challenging for American Airlines for years. In 2015, the airline reminded crew members about the importance of offering pre-departure beverages as it significantly impacts customer perception.

Despite these reminders, many flight attendants neglect this task without facing any consequences from the airline. The primary focus for American Airlines remains on-time departures; thus, if flights board late or passengers are still boarding, flight attendants prioritize avoiding delays over serving beverages.

Flight attendant pay is calculated based on flight time after boarding doors close, leading some crew members to avoid working before then. Additionally, insufficient profit-sharing reduces their incentive to ensure customer satisfaction or contribute to airline profitability.

An anonymous comment from an American Airlines flight attendant highlighted these sentiments: "You bought the seat in 1st. The service is optional. FAs are on board to save your ass not kiss it... Are there no drinking fountains or restrooms in the terminal? ...[Y]ou are so self-absorbed you whine about everything... Tip your flight attendant."

As contract negotiations remain tense, some cabin crew have engaged in 'self-help,' which is illegal under current regulations. Discussions on forums suggest actions such as refusing to pitch airline credit cards or volunteer for premium pay extra trips during operational disruptions caused by weather events.

The ongoing situation underscores an opportunity for American Airlines—offering real wage increases paired with accountability for delivering service could address both employee dissatisfaction and customer service issues effectively.

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