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A passenger arrives at Ronald Reagan Washington National Airport on November 21, 2023, in Arlington, Virginia.
JetBlue Airways has initiated early retirement offers for select pilots, as communicated by their labor union on Friday. This move is part of JetBlue’s broader strategy to improve financial performance amidst challenges, including a significant recall affecting Pratt & Whitney engines that have led to the grounding of several aircraft.
The company is actively seeking to streamline operations and enhance revenue generation through various measures, such as the introduction of new first-class seating options. The voluntary separation window for pilots will remain open until February 7, as indicated in a notice from the Air Line Pilots Association, which was reviewed by CNBC.
The agreement reached between JetBlue and the union stipulates that pilots opting for early retirement will receive compensation equivalent to 55 hours of their hourly pay rate, calculated up to their mandatory retirement date or a maximum of 18 months following the separation agreement—whichever period is shorter. For instance, an Airbus A320 captain with 12 years of experience, approaching the age of 65 in December 2027, could receive as much as $416,293.02. Meanwhile, an Embraer E190 captain with eight years of experience facing retirement by year’s end would stand to gain $160,858.91.
JetBlue is set to release its quarterly financial results on Tuesday, but the company has not yet commented on these recent developments.
According to the recent agreement, eligible pilots must be at least 59 years old by March 31, as the legal retirement age for commercial airline pilots in the United States is 65.
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