Amazon deliveries could be headed for some turbulence in the new year. Pilots for US-based Air Transport International, a cargo airline that ferries Amazon packages from its fulfillment centers to airports nearer to its customers, voted to authorize a strike last month. During the three and a half years the union has been negotiating with ATI, wages in the industry have soared, and ATI’s pilots complain that their pay has fallen behind. Meanwhile, they say ATI is facing record attrition as pilots jump ship to better-paying carriers.
A strike could throw a wrench in Amazon’s logistics network. ATI, owned by holding company ATSG, operates half of the 80 US aircraft currently in service for Amazon, according to an estimate by Planespotters. But the pilots, who are represented by the Air Line Pilots Association union, can’t walk out until at least next year.
Federal law requires airline labor disputes to be mediated by the US government’s National Mediation Board, which will implement a 30-day cooling-off period if it determines the parties have reached an impasse and they refuse arbitration. If a resolution isn’t reached during that time, the pilots can walk off the job or the airline can lock them out. Some 98 percent of ATI’s 640 pilots participated in the vote and only one didn’t vote to authorize the strike.
Amazon outsources the operation of its air service, which it calls Amazon Air, to a small network of cargo airlines whose pilots fly Amazon-branded planes. In the US alone, they collectively operate more than 330 daily flights for Amazon between more than 50 airports, according to the logistics consultancy MWPVL International.
Most airlines that work with Amazon also devote a large share of their businesses to transporting cargo for other customers, including DHL and the US military. In recent years, ATI has gone all-in on the retailer, however. Amazon deliveries now comprise 94 percent of ATI’s flying hours, according to the pilots’ union, making the company and its workers dependent on the ecommerce giant.
ATI’s pilots’ union says that more than a third of the airline’s pilots have left so far this year, after 27 percent of them departed last year. The union says 42 percent of its pilots are currently on probation, meaning they’re in their first year of service. “We’re watching our carrier disintegrate,” says Mike Sterling, chair of the ATI pilots’ union.
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