Hawaiian Airlines’ pilots might be the highest paid in the cargo industry

Hawaiian Airlines has 24 Airbus A330 passenger planes in its fleet. It will fly 10 more converted freighters for Amazon.

A tentative labor agreement last week could make Hawaiian Airlines’ pilots the highest paid in the cargo industry, exceeding compensation levels at traditional standard-bearers FedEx Express and UPS, as the Honolulu-based carrier prepares to begin flying heavy freighters for Amazon later this year.

Amazon’s private airline will incur higher expenses, but locking in a lucrative, long-term contract ensures Hawaiian Airlines labor stability and enables it to attract crew members during a period of pilot scarcity — features Amazon will likely find attractive for reliable deliveries.

The Air Line Pilots Association announced Thursday that negotiators had reached agreement with Hawaiian Airlines on a four-year contract that significantly boosts pilot pay, including for the carrier’s new cargo operation. The increase makes pay scales at Hawaiian very competitive with the top all-cargo carriers as well as passenger majors such as Delta Air Lines and United Airlines, according to union data.

The new terms of employment include an average 32.9% pay increase over the duration of the deal for Hawaiian’s five aircraft types, led by an average 16.6% increase at the time of signing. The deal includes a signing bonus, raises company retirement contributions, creates a health reimbursement account, increases schedule flexibility and addresses quality of life.

Hawaiian Airlines’ 1,000 pilots will vote on the new deal over two weeks, beginning Friday. If ratified, the contract will take effect on March 2.

A significant feature of the proposed agreement is the industry-leading pilot pay for Hawaiian’s future fleet of Airbus A330 freighters.

In October, Amazon Air said it will lease 10 used A330s converted to cargo configuration and place them with Hawaiian to operate on its behalf in the continental United States, and to Hawaii, for at least eight years. The A330 will be the largest aircraft in Amazon’s fleet, which has grown in six years to 110 aircraft crewed and maintained by several contract carriers. The cargo jets will replace older Boeing 767 freighters as their contracts with suppliers expire.

Amazon will pay a fixed monthly fee per aircraft, a per-flight-hour fee and a fee for each flight cycle operated. It will also reimburse Hawaiian for operating expenses, including fuel, certain maintenance and insurance premiums. Hawaiian said it intends to establish a pilot base on the continental U.S., grow existing maintenance bases and expand the hiring of pilots and other personnel to support the new cargo operation.

Hawaiian expects to begin operating the first two A330 converted freighters in the second half of 2023, said spokeswoman Kris Tanahara.

The Amazon business is expected to add about 160 pilots to Hawaiian’s ranks. freightwaves.com