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.

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.