Even as the U.S. airline industry makes record profits, some of which reach pilots as profit-sharing and higher wages, union leaders representing pilots remain nervous about their members’ future.
This was apparent on April 15, after the U.S. Transportation Department ruled that Norwegian Air International, an Irish subsidiary of the Norway-based carrier, could receive a foreign operating permit. The decision paves the way for Norwegian to access Europe’s open skies agreement with the U.S., allowing it to launch nearly as many trans-Atlantic routes as it wants. Worse, pilot groups worry, Norwegian may pay its flight attendants and pilots less than U.S. airlines, giving it lower costs than legacy U.S.-based carriers. The U.S. government had delayed the approval process, but most analysts expected it eventually would grant Norwegian’s request, as there was little legal basis to deny it. But the nation’s largest pilot union was nonetheless upset, arguing that the government’s move “exposes serious flaws in U.S. aviation policy.”
“We are extremely disappointed by the [Transportation Department’s] intention to permit Norwegian Air International to fly to and from the United States because it is an affront to fair competition,” says Capt. Tim Canoll, president of the Air Line Pilots Association (ALPA). “[The department]is proposing to allow a foreign airline to compete directly with U.S. airlines on long-haul international routes with unfair economic advantages.”
U.S. pilot unions fear Norwegian Air International’s lower salaries will undercut those of U.S. airlines. Credit: Bo Mathisen

From the outside, it appears to be a good time to be a U.S. mainline pilot. Wages are rising, and all four major airlines are paying, or will soon pay, hefty profit-sharing. The economic climate could change, but the industry looks stable, with furloughs or job cuts unlikely. With airlines hiring, pilots are moving up in the ranks—often to captain—much sooner than in the recent past.
But union leaders fear international competition, not only from airlines like Norwegian with lower labor costs, but also from the Gulf airlines, as Qatar Airways, Etihad Airwaysand Emirates rapidly expand. Closer to home, they also fear wages may not keep pace with the high profits U.S. airlines have been earning.
Speaking at the CAPA Americas Aviation Summit on April 11, Rick Dominguez, ALPA’s executive administrator, said he fears low-cost European airlines such as Norwegian have an unfair advantage because they can “labor shop” among EU countries. Bob Coffman, who handles government affairs for the Allied Pilots Association, agreed, saying the situation would be more tenable if EU nations unify their labor laws. “We need a competitive playing field,” Coffman said. 
The issue with the Gulf airlines is not new, but it remains a concern. ALPA believes Qatar, Emirates and Etihad are violating existing open skies agreements signed with the U.S., arguing the carriers receive unfair subsidies from their governments, a charge the Gulf airlines deny. “Let’s enforce the agreements we have,” Dominguez says.
This has put the U.S. government in a tricky spot. It wants to maintain trade agreements, but it may also be open to arguments from labor interests, including pilots. “What we try to look for in enforcing the existing aviation agreements. . . is whether our carriers have fair and equal opportunity to compete,” said Thomas S. Engle, deputy assistant secretary for transportation affairs at the State Department at the CAPA Summit. “We take any allegations that U.S. carriers are being denied a fair opportunity to compete very seriously.”
The two pilot unions have asked the U.S. government to seek consultations with the governments of Qatar and the United Arab Emirates to address what they call the unfair advantage the three major airlines have. But the U.S. government has yet to say what it will do, irritating the unions. On a panel with APA’s Coffman and ALPA’s Dominguez, Engle said policy-makers are working as quickly as they can.
“I don’t apologize for the length of time it has taken the administration to review the consultations,” Engle says. “You just don’t rush into this type of thing.”
Eventually, these issues will be resolved by governments, and pilot unions will only have limited say in these decisions. However, unions have more sway when it comes to dealing with airlines. 
This, too, has been a source of recent angst. At many carriers, pilots believe they made too many concessions as airlines faltered in the past, and now they want better wages and benefits. But carriers are not always ready to give that much, and tentative agreements with pilots recently failed at Southwest Airlines and Delta Air Lines.
“If you look at the environment, where airlines are making billions of dollars, and you have employees that 10 years ago through bankruptcy took 40%-plus pay cuts, [our members] look to the history and say, ‘We gave up all of this,’” says Dave Krieger, an ALPA managing director. “Now the table is turned and you have the airlines making a lot of money. Pilot expectations are high.”
Naomi Hudson, senior director of labor relations for Southwest Airlines, says pilots and flight attendants often do not want to approve a contract that has any provision that might be considered a concession, even if it is just a tweak in work rules. She also says tentative agreements are sometimes rejected because both sides do a poor job of communicating what is in them.
“The unions do a somewhat good job of explaining, but it’s a long story,” Hudson says. “[Members] get pretty much, relatively speaking, a short version.”
But ALPA’s Krieger says this issue can be solved. “You need to communicate each step of the way, so they’re not surprised,” he says. “You should not be agreeing to something you don’t know if your members will agree to.”