American Airlines Pilots Want A Contract Deal At Par With United Airlines: Report

American Airlines Group Inc AAL pilot union has reportedly informed the company that its new contract deal is in peril.

According to a union memo obtained by Reuters, the ratification of American Airlines' new contract deal is in "jeopardy" as United Airlines Holdings Inc UAL raised the bar with its deal.   

American pilots will vote next week on a new four-year contract that includes a 42% pay raise and other benefits, added the report.

Related: Ready For Takeoff? American Airlines Pilots Vote To Strike, Putting Summer Travels On Shaky Turbulence

"Management is fully aware that the proposed UAL deal has now put the ratification of our TA (tentative agreement) in jeopardy," the union stated in the memo.

Allied Pilots Association stated that the proposed pay rates and some quality-of-life items in the agreement pale in comparison with those in United's preliminary deal.

The company will work with the union to make sure its pilots are taken care of, stated Reuters, citing American Airlines Spokesperson.

Also Read: American, JetBlue Begin Steps To Cease The Northeast Alliance

Dennis Tajer, a representative for the American's pilots union, stated that United's deal will result in at least a 2% pay gap between United and American pilots. He claims that United's back pay provisions are also better than what American has in its pilot agreement.

Price Action: AAL shares are trading lower by 0.32% at $18.62 on the last check Wednesday.