Spirit Airlines Update on ALPA Strike: Flights Cancelled Through Tuesday, June 15, 2010
Further Clarifications To The Offer Turned Down By ALPA: Pilots Would Have Earned An Additional 47% In Compensation Over Five Years And Further Bonuses and Extras Paying Many Pilots Over $200,000 Annually
As a result of its pilot union's decision to strike, Spirit's flights are cancelled for Saturday, June 12 through Tuesday, June 15, 2010.
"It is surprising to me that ALPA would turn down this generous offer that would have paid senior captains over $200,000 per year"
Spirit is processing future flight credits for customers for the full amount of their unflown flight purchase, and is also giving them a $100 future flight credit. Customers who prefer a full refund may call 1 (800) 772-7117 for assistance. Customers who made their reservation prior to May 11, 2010 and purchased travel insurance can call Travel Guard at +1 (866) 877-3191 to discuss coverage questions and to start an insurance claim. Policyholders may have valuable coverage for Trip Cancellation and Trip Interruption due to the pilots strike.
Following is further clarification to Spirit's fair and equitable offer that was turned down by the union. ALPA turned down a compounded average 29 percent pay increase costing the company an additional $70 million over five years, net of productivity improvements agreed to by the pilots. This 29 percent pay increase when combined with annual step increases totals a 47 percent increase in annual compensation over five years, prior to any overtime pay, signing bonus and 401K matching contribution increases.
Annual Salary Example:
Annual salary current Annual salary at signing Annual salary end of contract period
based on minimum monthly pay guarantee of 72 hours
Captain - Year 8 $ 105,002 $ 115,502 $ 146,531
Captain - Year 15 $ 119,128 $ 131,041 $ 160,113
First Officer - Year 4 $ 52,272 $ 57,499 $ 78,115
First Officer - Year 10 $ 61,664 $ 67,830 $ 82,870
based on monthly pay of 90 hours (prior to any overtime)
Captain - Year 8 $ 131,252 $ 144,378 $ 183,163
Captain - Year 15 $ 148,910 $ 163,801 $ 200,141
First Officer - Year 4 $ 65,340 $ 71,874 $ 97,644
First Officer - Year 10 $ 77,080 $ 84,788 $ 103,588
In addition to the double-digit percent in salary increase, the pilots would have retained a four-day off break between each and every trip, a feature not found in any other ALPA contract, and another major issue of the negotiations. Despite not being favored by Spirit, the four-day off issue was a continuous sticking point for ALPA.
In addition, under the offer each pilot would have received a $3,000 signing bonus. The pilots would also receive an eight percent 401K match in years one through three with an increase to nine percent in year four, while all other Spirit employees only receive a three percent match.
Spirit pilots at the negotiating table worked incredibly hard and Spirit stepped up with them to get a contract that works for all parties and ensures the long-term growth and stability of the company and its pilots. Spirit's offer to ALPA addressed all of the union's major requests.
"It is surprising to me that ALPA would turn down this generous offer that would have paid senior captains over $200,000 per year," says Spirit Airlines President and CEO Ben Baldanza. "I am concerned that our employees are being used in a broader political game that may not be in the interest of their careers or their families. This deal should be about Spirit and Spirit only, not about the pilots whose contracts are under negotiation at other ALPA carriers, but it would appear other forces have intervened."