Posted on: 15 September 2016 by Mark Howells
Envoy Air Inc. and PSA Airlines, both wholly owned subsidiaries of American Airlines Group, are both seeing changes in the way pilots are paid.
Envoy Air is almost doubling the starting rate for new hires to nearly US$38 per hour, meaning its First Officers can earn $58,000 or more in their first year on the job.
The carrier will also increase the pay rates for existing First Officers during their first three years with the airline and expand its existing First Officer Retention Bonus of $20,000 to apply to all new hires and existing First Officers who do not already participate in the programme. Under the expanded programme, pilots will receive $2,500 quarterly, following completion of one year of service.
“Envoy’s new industry-leading starting pay – along with our up to $20,000 signing bonus, $20,000 First Officer retention bonus and guaranteed flow-through to American Airlines, without any further interview – means our pilots will be among the most highly compensated in the industry,” commented Ric Wilson, VP flight operations, Envoy Air.
Captains at Envoy will also be eligible to receive a $7,500 retention bonus payable in three $2,500 increments.
In addition to pay and bonuses, Envoy’s compensation package includes American Airlines Group profit sharing; free personal travel on American’s global network; life, health and disability benefits; and preferred crew bases in Dallas/Fort Worth and Chicago with paid hotels for training and commuting.
PSA Airlines’ new compensation package includes a 56% increase to the starting pay for new-hire First Officers, increasing wages from $24.62 per hour to $38.50 per hour. The airline will continue offering all new-hire pilots a $15,000 sign-on bonus, with an additional $5,000 for new-hire pilots with CRJ-type experience.
The carrier is also implementing a $20,000 retention bonus for First Officers hired under this new programme to be paid out in instalments after their one-year anniversary with the company. Furthermore, PSA is instituting a $7,500 retention bonus for all Captains currently employed with the company.
“PSA’s new pilot compensation programme is a true game-changer for our airline and we are proud to offer the highest first-year compensation in the regional industry,” remarked Dion Flannery, president of PSA Airlines. “This package complements the unrivalled stability and growth opportunity at our carrier and with a true seniority-based flow to American Airlines, PSA is well-positioned to offer prospective pilots the highest paying and most stable career path in commercial aviation.”
PSA will also offer an additional $3,000 with a commuter hotel allowance programme implemented earlier this year. A pilot starting their commercial aviation career with PSA can reasonably expect to reach Captain and earn between $165,000 and $175,000 in compensation for their first three years of service with the company.