Mexico: Pilots and flight attendants agree to a salary reduction to support Aeroméxico

The Aviators Pilots Union Association (ASPA) of Mexico voted in favor of an agreement to reduce between five and 15 percent of the captains salaries for four years, this in order for Aeroméxico to access financing of 1,000 million to which the Apollo investment fund committed to capitalize the airline, which would still have to endorse the proposal.

In a statement, the ASPA indicated that, after the vote, the pilots accepted the reduction for around 350 million dollars under the premises of temporality, remuneration and proportionality.

With the closing of this negotiation, Aeroméxico will be able to access financing to conclude its financial restructuring under Chapter 11 of the Bankruptcy Law in the United States.

As for the salary reduction, this includes three temporary scenarios: the first, for pilots who have been hired after December 13, 2010, the contribution will be 5 percent of their salaries and benefits, a modification that will apply from 1 January 2021 to December 31, 2022.

For pilots hired before December 13, 2010, the reduction will be 15 percent and will apply from January 1 of this year until the last day of next year.

For the period from January 1, 2023 to September 30, 2024, pilots hired before December 13, 2010 will contribute a salary contribution of 14 percent of their salaries.

Travel expenses will have an average reduction of 20 percent and will be frozen until September 30, 2024, the year in which they will begin to increase. In addition, a provision of uniforms and suitcases for the years 2021 and 2022 will be suspended, the contribution to the savings bank will be reduced by three percentage points, to remain at five percent during the following four years.

The contractual modifications will also involve changes to the captains' overnight hotels. Thus, a committee will be formed to designate overnight sites and thereby save 15 percent in the average rate per room occupied by the pilots.

Regarding the bonuses that will be temporarily suspended, there is the recognition (lodging-food), monthly and annual productivity, while the social security payment to retired pilots will be suspended until September 30, 2024.