United and Pilots Union Agree on Terms for Early Retirement

United Airlines Holdings Inc. reached a tentative agreement with its pilots over terms for voluntary leave programs and an “early out” separation plan for senior pilots who are 62 and older, their union said Thursday.

The deal with the Air Line Pilots Association came a day after United notified about 36,000 employees, including 2,250 pilots, that they could lose their jobs in October. The leave programs follow similar plans by American Airlines Group Inc. and Delta Air Lines Inc. to reduce their pilot ranks given the deep decline in air travel demand.

The voluntary programs are designed to entice as many United pilots as possible to leave, thereby reducing the number of involuntary cuts imposed in October, according to the United chapter of the Air Line Pilots Association.

Packages for the oldest aviators generally offer roughly 70%-75% of their regular monthly income, plus the same medical, travel and retirement benefits as if they’d continued flying. United has about 1,400 pilots who are 62 and older, and nearly all of them are senior enough to avoid a furlough this fall.

It is unclear how many of the oldest pilots will elect to leave their careers early, said Roger Phillips, a spokesman for ALPA. The union’s executive council will debate the proposals next week.

Spokespeople for United didn’t immediately respond to a request for comment Thursday night.

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Will Davies, Brendan Case

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