News Updates
Xpress Jet Negotiations Update
November 19, 2009The first session of contract negotiations were held on November 17th and 18th 2009 at Teamster Local 19’s offices in Houston.
The negotiations began with the company giving a detailed presentation of the corporate financial situation based on SEC filings and projections for the coming year. The upcoming flying for UAL was also discussed although the company still had not received details from United as of yet.
When contract proposals were discussed both sides engaged in open and productive analysis of the issues and with a few exchanges of proposal and counter proposals a tentative agreement was reached on Article 4, Seniority.
There was also discussion of Article 5, Filling of Vacancies with proposal and counter proposal exchanged.
Negotiations have been scheduled to resume in early January 2010.
Government Orders Cape Air Election Run Again
November 19, 2009ABX Air Pilots Ratify New Labor Agreement
November 19, 2009WILMINGTON — ABX Air pilots have approved an amended labor contract with the company that will allow members of the union, Airline Professionals Association Teamsters Local 1224, to receive severance benefits provided by express shipper DHL.
DHL, ABX’s biggest customer, slashed its U.S. operations in 2008 and this year, forcing ABX Air and other companies to lay off thousands of employees at the DHL-owned Wilmington Air Park, the region’s largest employer.
ABX Air said the new labor agreement provides for wages, benefits and work rules that are more in line with market competitors than under the current agreement. Neither the company nor the union released any details. It amends a contract that was last updated in 2003.
ABX Air flight crew members ratified the new contract in voting that ended Tuesday, Nov. 17. The union declined to release the vote totals. It represents about 600 members, two-thirds of whom have been furloughed from their jobs.
The new contract is contingent upon the signing of a new commercial agreement that would provide for DHL’s continued use of ABX Air aircraft and flight crews in its U.S. express network. ABX Air said it is discussing such an agreement with DHL to replace a seven-year that extends to Aug. 15, 2010.
The labor agreement with ABX Air’s pilots will help the company in its efforts to win a new contract with DHL, said John Graber, president of ABX Air.
This article originally appeared in the Dayton Daily News on November 19, 2009.
Teamsters Support Tighter Security at Foreign Repair Stations
November 18, 2009
Call On Congress To Order That All Foreign Repair Stations Be Regulated
(WASHINGTON) – The Teamsters Union said Wednesday that there should be a single security standard for aircraft repair stations in the U.S. and overseas.
Airline Division News, Week Ending November 6, 2009
November 13, 2009
Airline Division News Items
NMB Proposes Change in Representation Voting Rule
The National Mediation Board wants to make it easier for thousands of airline and railway workers to unionize under the Railway Labor Act by seeking to junk a 75-year-old election rule, according to a proposal published Monday in the Federal Register.
The move comes after a White House appointment shifted the balance of the government agency's three-person board. Linda Puchala, a former flight attendant union leader, was selected to replace Read Van de Water, a former Northwest Airlines lobbyist, earlier this year. She joined Harry Hoglander, a former pilots union leader appointed in 2002. The NMB regulates labor relations in aviation and rail.
More than 570,000 workers are employed by railroads and airlines, more than two-thirds of whom already are unionized. But changes to the election rules could affect thousands more workers. Delta Air Lines Inc., the world's largest airline, and Continental Airlines Inc. are awaiting unionization votes that would affect about 40,000 workers.
The new policy could mark a significant victory for unions.
Under an interpretation of the Railway Labor Act dating to 1934, aviation and rail workers who don't vote on whether to create a union are counted as "no" votes. That means a union cannot be approved without a full majority of all employees voting yes.
Under the National Labor Relations Act governing other industries, a union can be created as long as a majority of all votes cast are in favor of collective bargaining. In such elections, nonvotes don't count.
Under the proposal made public Monday, which is subject to a 60-day comment period, the NMB would tally votes for air and rail workers in the same way as those other industries. "Few if any" democratic elections treat nonvotes as no votes, the NMB said in the proposal.
Railways, and airlines such as Delta and Continental, strongly oppose the measure. The Air Transport Association, an umbrella group for airlines, said Monday that Congress, not the NMB, has the authority to overhaul the rule.
"This reform lets workers choose a union the same way they choose the president of the United States," said Teamsters General President Jim Hoffa. "Whichever side gets the most votes, wins."
Continental Says Merger with United Still Possible
Continental Airlines hasn't ruled out a merger with United Airlines and would again pursue a deal to become the world's largest carrier if the current No. 1, Delta Air Lines, proves a formidable competitor, Continental President Jeff Smisek said Tuesday.
For now, Houston-based Continental prefers to remain independent and focus on its new partnership with Chicago-based United and other members of the Star Alliance, the global marketing consortium that Continental joined last week, Smisek said in an interview with Bloomberg television.
"We are watching Delta to see whether Delta outperforms us financially," said Smisek, who will become Continental's CEO at year's end. "To date they have not done so. They've gotten bigger, they've gotten more complex, but they haven't gotten profitable."
The Teamsters Airline Division represents mechanics at both United and Continental.
Teamsters Reach New Contract with ABX
Following more than four years of frustration and futility, Teamsters Local 1224 and ABX Air, Inc. reached a tentative agreement for a new collective bargaining agreement on November 5. Pending the membership’s ratification of the proposed agreement, the flight crewmembers of ABX Air will have attained success in securing one of the best contracts in the industry. Negotiators were able to avoid a distressed termination of the pension plan and preserve it to the fullest extent, secure a disability plan that provides solid protections for disabled crewmembers, obtain increased scope protections, retain health insurance for retirees and maintain an above industry-standard hourly pay rate. For our furloughed crewmembers, Local 1224 was successful in obtaining an outstanding furlough/severance plan that will provide our members with far greater economic protections than what was originally offered.
NMB Continues to Mediate UPS and Teamsters Contract Negotiations
Representatives from UPS and Teamsters Local 2727 which represents approximately 1,200 UPS airline mechanics, met this week in Minneapolis, Minnesota with federal mediators from the National Mediation Board, in an effort to complete the parties’ collective bargaining negotiations. NMB officials indicated that progress was made in the form of tentative agreements on a number of open issues. Several matters remain outstanding, however, and the NMB scheduled another week of mediation starting on January 5, 2010. If the parties are unable to reach an agreement that week, the NMB will schedule additional mediation sessions, depending on the parties’ schedules for the 2010 calendar year. In the meantime, the parties are operating under the terms of their existing collective bargaining agreement and are each prohibited by law from engaging in any economic activities such as strikes, slowdowns and lockouts. IBT Airline Division Director David Bourne expressed his confidence that the parties will be able to complete their contract negotiations through the NMB’s mediation services, stating that “the parties will be able to work their way through the mediation process and at the end of the day I am sure we will reach a fair, amicable agreement. We will make every effort to reach an agreement at the next NMB session in early 2010, and I am hopeful that we will be successful.”
Teamsters Open New Section 6 Negotiations with PLH Aviation Services
As an indication of the broad reach of crafts represented by the Teamsters Airline Division under the RLA, a Section 6 notice was sent to PLH Aviation Services to initiate negotiations for a new contract for fuelers. PLH Aviation Services Inc. is a wholly owned private corporation specializing in into-plane refueling operations. Stationed at international and regional airports across Canada and in Los Angeles, PLH has a proven track record to provide safe, quality and cost effective fueling services to airlines.
Week in Review News Items
Labor Developments
Organized labor appears to be gaining the upper hand in the skies and on rails, as labor and business battle for influence under the Obama administration. The National Mediation Board wants to make it easier for thousands of airline and railway workers to unionize under the Railway Labor Act by seeking to junk a 75-year-old election rule, according to a proposal published Monday in the Federal Register. The Association of Flight Attendants-CWA union has withdrawn its bid to seek a union election for more than 20,000 workers at Delta Air Lines, citing the proposed U.S. rule change that it said would result in a fairer balloting process. Pilots at Southwest Airlines overwhelmingly have approved a five-year agreement with the Dallas-based carrier, five months after rejecting an earlier offer. British Airways' cabin crew met this week at Sandown Park Racecourse in Surrey to discuss possible strike action. The meeting was called by Unite, the union which represents the majority of BA's 14,000 cabin crew. And five years after retiring from Japan Airlines, former pilot Tsutomu Watanabe is fighting to protect the pension he was promised but that the airline can no longer afford to pay.
Regulatory & Safety
Two safety critical issues arose this week, in reports about a Qantas 767 descending too low with its wheels up as it approached Sydney last Monday, and about the informal relationship between Qantas and CASA and shoddy foreign maintenance. They raise again the question as to whether the public administration of air safety in Australia is going to be reformed promptly, or after a major crash? The Cityflyer incident , which occurred on a Melbourne-Sydney 767 appears to be unprecedented in a modern jet airliner in terms of triggering a Ground Proximity Warning System alert telling the pilots, who have been stood down, that they were flying the jet too close to the ground without the wheels down. A federal study of the increase in the mandatory retirement age for commercial pilots to 65 has concluded there is too little information to determine the safety impact of that decision. Passengers' growing appetite for electronic gadgets and WiFi access is creating problems for airlines eager to sate that appetite. The challenge lies in enforcing myriad company policies and federal laws covering wireless communications.
Airline Industry Finances
The world's leading airlines were able to raise USD$8 billion in new cash from capital markets in the past two months, but their full-year outlook remains worrisome, IATA said on Tuesday. In its latest industry snapshot, the IATA said it still expected airlines to lose USD$11 billion on a net basis in 2009 and warned that with jet fuel prices on the rise, cash flows would be under pressure. Most of the largest U.S. airlines have increased a surcharge for travel on the busiest travel days to $20 each way, up from $10. The surcharges apply to a large number of flights within the U.S. on more than a dozen peak days around holidays including Thanksgiving, Christmas and New Year's. British Airways has reported a loss before tax of £292m for the six months to the end of September, as business class passenger numbers continue to drop. It is the first time BA has posted a loss in the first half of its financial year, reports the BBC.
Miscellaneous
Continental Airlines is in the throes of major changes? It has just joined Star Alliance from SkyTeam and in January a new ceo Jeff Smisek takes over?Continental hasn't ruled out a merger with United Airlines and would again pursue a deal to become the world's largest carrier if the current No. 1, Delta Air Lines, proves a formidable competitor, Continental President Jeff Smisek said Tuesday?Irish budget airline Ryanair sent a fresh warning to Boeing over a large order, saying it could curb its once unstoppable growth as limits emerge in its quest for cutting costs.
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Edited By Business Travel Coalition
Airline Division News, Week Ending November 13, 2009
November 13, 2009
Airline Division News Items
Republic To Move Frontier’s Teamster Mechanics from Denver to Milwaukee
Frontier's parent company, Republic Airways Holdings, announced Tuesday that about 200 mechanics now based in Denver and some of the 118 employees of the airline's reservation center in Las Cruces, N.M., will be moved to Milwaukee. Indianapolis-based Republic has been working to consolidate operations since acquiring Frontier on Oct. 1 and Milwaukee-based Midwest Airlines on July 31.
Republic will be eligible to receive up to $27 million in Milwaukee and Wisconsin tax credits through the end of 2021 based on its promise to keep more than 700 existing jobs and add 800 full-time positions - half of which will involve relocations of Midwest and Frontier workers.
Denver tried to keep the mechanics. Included in the joint Colorado-Denver package were cash incentives, job-training incentives, forgiveness of some of Frontier's property taxes owed to the city from the airline's bankruptcy, and offsets for Denver's 3.62 percent sales tax on parts brought in to repair aircraft.
Although the city wanted to keep the Frontier jobs, the mayor said "there would be bloodshed in the streets" if the city suffered more cuts while simultaneously offering tax incentives to a business.
Gov. Bill Ritter said in a release that the state and city offered a competitive package to keep as many jobs as possible.
"While we respect Republic's business decision, it's still disappointing," Ritter said. "But we shouldn't lose sight of the fact that Frontier Airlines remains Colorado's homegrown, low-fare airline and is helping to keep our economy strong."
Matthew Fazakas, president of Teamsters Local 961, which represents about 275 mechanics, was angered by what he called a failure of Colorado and Denver leaders to step up.
Republic's Bedford said the moves, which will be completed by mid-2010, "will help us to further lower the costs of operating our branded business, better positioning us to compete over the long term."
Denver will remain the site of reservation, marketing, flight-crew and administrative jobs, said Republic spokesman Carlo Bertolini. "Denver will have the largest employment base of Republic Airways," Bertolini said. "Denver is a major hub of our network. By no means are we exiting Denver."
No deadline has been set for relocation decisions. Workers who decide to relocate will receive moving aid. Those who don't want to move may apply for open company positions or be eligible for severance.
DOT Forum Thursday Looks to 'Fix' Airline Industry
Transportation Secretary Ray LaHood held a closed-door meeting Thursday that he hopes will be the first step towards "fixing" the airline industry. The invitation to aviation stakeholders was not open to the public, or the press.
The Obama administration reached out to the nation's airlines and their unions and other industry groups for solutions on how to restore health to the ailing industry, which is losing billions of dollars, shedding jobs and blamed for using a business model critics say undermines safety.
"U.S. aviation is facing severe economic uncertainty, and an open and frank conversation will help begin a continuing dialogue about the industry's future," Transportation Department spokeswoman Sasha Johnson said. This was an initial meeting and the discussions were wide ranging but also general in nature. Secretary LaHood announced the formation of a Federal Advisory Committee on Aviation to develop a roadmap for the future of the industry. He asked participants for additional feedback about the composition and direction of the Advisory Committee, which will be formed in the weeks ahead. The IBT intends to be an active participant in this process.
Airlines are offering the fewest seats to passengers, measured by available seats and distance traveled, in more than a decade. They have shed more than 158,000 full-time jobs since employment peaked in 2001 and lost an estimated $33 billion over the past decade. Thirteen airlines have filed for bankruptcy in the past two years.
The deregulation of airlines in 1978 has helped lower air fares for consumers. But other trends have raised concerns about whether airlines are offsetting low fares at the expense of safety and service quality.
A report last year by a government watchdog said nine large U.S. airlines farm out 70 percent of major maintenance. Overseas repair shops handled one-quarter of the work, challenging the ability of U.S. inspectors to determine whether it is done properly, the report said.
United Promoting Employee Participation in Capt Jason Dahl Scholarship Fund
United just recently authorized employees to donate to The Capt Jason Dahl Scholarship through the United Charity Giving Program. The Captain Jason Dahl Scholarship Fund is a 501(c) 3 Non-Profit Corporation, FEIN # 68-0519470, established to provide scholarships for qualified students who wish to attend accredited commercial flight training schools in the United States. Captain Dahl himself received a $2,000 scholarship toward his flight school tuition at San Jose State University in California, after completing and winning an essay contest with the subject entitled, “Why I Want to Fly.”
As Captain of United Flight 93 on September 11, 2001, Jason was among the first to give his life in a vain attempt to protect the passengers and crew of his ship. We have no doubt Jason would willingly serve again, because he was that kind of pilot, father and man. The Captain Jason Dahl Scholarship Fund was established the day after the national tragedy, and grew to a respectable sum within the first few months, thanks to the outpouring of support from family, friends, and other generous Americans. Awards are granted from annual proceeds generated by the Fund.
The Fund’s six-person board, whose membership includes his widow, Sandra Dahl, and friends UAL Captain’s Dave Dosch, Tom Bush, Steve Jacques, and Denny Flanagan, determine the annual scholarship awards. Currently two $5,000 aviation scholarships are awarded annually. With your participation we will be able to increase the number of recipient’s nationwide. All United employees can now join in the fundraising effort during OPEN ENROLLMENT.
Atlas Air Worldwide Holdings (AAWW) Pilots Negotiations Continuing
Negotiations were held in Washington on November 3 thru 6., with the last day devoted to scope issues. Proposals and counter-proposals were exchanged on seven different sections. No TAs were achieved. The company did not have a formal response to the union’s scope proposal and they wanted to put off further discussion to the end of negotiations. However, the company had agreed to negotiate scope in parallel with other items and the union will insist that scope negotiations continue. The next bargaining session will be in Washington on November 23 thru 25, with scope discussions on the 23rd.
Week in Review News Items
Labor Developments
DOT Secretary LaHood called a closed-door meeting Thursday at the behest of airline unions that he hopes will be the first step towards "fixing" the airline industry. While the media was shut out of the meeting, the Business Travel Coalition (BTC) released prepared remarks from its presentation at the forum. "If cheap intercity mass air transportation was the only objective advocates of deregulation sought to achieve, then success has been realized," the organization said. "The American people deserve a little respect for their ability to handle the truth and make rational choices," BTC said. They called for a debate over air transportation public policy objectives, "even if it's 30-some years overdue."
Regulatory & Safety
Police arrested a United Airlines pilot Monday who flunked a breathalyzer test at London Heathrow minutes before his Boeing 767 jet was to take off for Chicago. His arrest is the latest in a recent spate of pilot mishaps that has some aviation observers questioning whether the physical stresses of flying, combined with personal financial pressures, are beginning to take a toll on the profession. Kevin Mitchell, chairman of the Business Travel Coalition, says the series of incidents involving pilots is not random. "We have begun a long slide in terms of professionalism in the industry," he said. "This industry and its workers have been pushed to the limits, and I think they are a little ragged at the edges. "You have an industry of professional pilots whose pay had been cut, their work hours extended and their pensions slashed in many cases," he said. "They are demoralized. They tell their kids not to come into the profession."
Airline Industry Finances & Structure
Japan Airlines said Friday it racked up a $1.5 billion loss and was seeking government help to fend off creditors as the beleaguered carrier struggles to recover from the travel industry's deepest slump in years. American and Delta each continue to express a strong interest in financially troubled Japan Airlines, which reportedly is negotiating a ¥100 billion ($1.1 billion) short-term bridge loan with the Development Bank of Japan to fortify its cash position as it develops a longer-term restructuring plan. British Airways and Spain's Iberia announced on Thursday a preliminary agreement for a $7 billion merger to create the world's third-largest airline by revenue. For months, the rumor has circulated that US Airways might merge with American. And low-cost airlines have grown rapidly in the past 10 years at the expense of United and other traditional mainline carriers.
Airline Ancillary Revenue
United, a leader in generating ancillary revenue is marshalling its resources to come up with even more fees and better ways to package and market them. Looking for new ancillary revenue streams is vital to the airline, CEO Glenn Tilton said. Two leading travel organisations have joined forces to try and build industry standards on "unbundling." The UK and Ireland Institute of Travel and Meetings and the Business Travel Coalition are setting up an international Industry Solutions Group. This will aim to "develop and build consensus around standards and policies for airline product unbundling.”
Miscellaneous
The American Civil Liberties Union has dropped its lawsuit against the TSA after it revised its policy on searching travelers, telling screeners they can only investigate transportation-related issues, barring them from seeking evidence of crimes unrelated to air safety?thirty-five senators have signed on to a letter calling for the passage of a long-term FAA funding bill before the end of the year?uplift sells better than unpleasant facts, which is why William Langewiesche’s new book, “Fly by Wire,” has been published with an upbeat subtitle: “The Geese, the Glide, the Miracle on the Hudson.”
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Edited By Business Travel Coalition
Airline Division News, Week Ending October 30, 2009
October 30, 2009
Airline Division News Items
United Mechanics Win Bid to Keep Maintenance Jobs at SFO
United Airlines says 60 jobs at San Francisco International Airport have been saved because its
local maintenance base came in with the best bid to upgrade the first class and business class
cabins in 32 of its Boeing 777 aircraft. The local operation, which employs about 2,700 maintenance workers and engineers, beat out third party contractors that would have taken the work elsewhere, a United spokeswoman said. United now employs about 6,000 maintenance workers systemwide, down from about 16,000 prior to the September 11 attacks that sent the airline industry into a tailspin. The San Francisco operation, which is the airline's headquarters for maintenance, employed about 9,000 people at its pre-9/11 peak -- and is fighting to hang on to every possible job.
Continental Becomes Part of Star Alliance
Continental Airlines on Tuesday joined the Star Alliance, which includes United and 23 other carriers. Continental's migration from the SkyTeam alliance to the Star Alliance is the most significant switch since airline alliances started more than 10 years ago, according to industry observers. Continental estimates its membership in Star will produce $100 million more in revenues than its prior partnership. The Teamsters represent the Continental mechanics and hope to represent Continental’s ramp agents in the near future.
US Airways Announces Plans to Cut 1,000 Workers
Struggling US Airways said Wednesday it will cut some 1,000 jobs next year, shift nearly all of its flying to its three hubs and Washington, and suspend several international routes. The retrenching is aimed at putting its airplanes where the money is its hubs at Philadelphia, Phoenix, and Charlotte, N.C., as well as Washington. US Airways said flying from its hubs has been profitable. The changes announced Wednesday include dropping Colorado Springs, Colo., which it said is too close to Denver to be profitable. It is also trimming Las Vegas flights from 64 departures per day to 36. The carrier is scaling back international flying from Philadelphia. It will suspend flights between there and London Gatwick; Birmingham, England; Milan, Italy; Shannon, Ireland; and Stockholm. It will also formally give up its government permission to fly between Philadelphia and Beijing, which it never used.
The Tempe, Ariz.-based airline said the job cuts will happen in the first half 2010 and will include 600 customer service agents and ramp service workers, 200 pilots, and about 150 flight attendants. The airline will close crew bases in Las Vegas and at LaGuardia airport in New York on Jan. 31, and in Boston on May 2. The Teamsters represent US Airways Customer Service Agents.
Atlas Air Worldwide Holdings (AAWW) Reported Exceptionally Strong Third-quarter Results.
The US-based 747 ACMI and charter specialist said net income in the quarter was up 181% to $14.7 million, as total revenues fell 44.5% to $255.5 million. The jump in net income and fall in revenue both reflect AAWH’s exit from the scheduled service freight market, and the deconsolidation of POLAR AIR CARGO WORLDWIDE from the parent company for financial reporting purposes. Also, AAWH is entering the passenger business, although in a way somewhat different from its cargo operations. As expected, Atlas won a long-term contract from SONAIR (which acts as agent for the US-Africa Energy Association) to operate premium passenger charter service between Houston and Luanda (Angola). Atlas will operate the charter service with two 747-400 passenger aircraft provided by SonAir’s parent company, which are being reconfigured into largely business and executive class configuration.
Contract negotiations with AAWW held on October 19th, 20th, and 21st. in Washington, DC were productive. Tentative Agreements were reached on two sections and considerable progress was made on two other sections. The next regular bargaining session will be on November 3rd, 4th and 5th in Washington, DC and a separate session on Scope will be held on November 6th, also in Washington, DC.
Omni International Pilots Making Good Progress in Negotiating Their First Contract
Local 747 Executive Council negotiators Clark Cameron, Charlie Wallace and Walt Reulbach made progress last week in mediated talks with Omni management towards their first Collective Bargaining Agreement for the crewmembers of Omni Air. They were joined by Local 747 representatives John Herron and Jennifer Petty, and Teamsters Airline Division International Representative Scott Hegland. In a week of talks in Dallas, TX, tentative agreements were reached on two more sections, one of which was the Training Section. Provisions were included to reduce training on holidays, to provide for more rest taking into account travel before and after training, and certain measures to ensure additional training is available if needed.
To date, tentative agreements have been reached on Sections 3 [Dues Check off and Union Security], 4 [Seniority], 5 [Resolution of Disputes], 6 [Supervisory Duty], 12 [Training], 14 [Instructors and Check Airmen], 15 [Physical Examinations], 19 [Expenses], and 22 [Missing Internment, Hostage or Prisoner of War Benefits]. The next round of negotiations is scheduled for November 16-20 in Houston, TX.
Week in Review News Items
Labor Developments
U.S. carriers including Delta will have a harder time blocking union organizing campaigns under a change planned by a federal labor board. The proposal would let workers form unions with majority approval of those voting. United Airlines says 60 jobs at San Francisco International Airport have been saved because its local maintenance base came in with the best bid to upgrade the first class and business class cabins in 32 of its Boeing 777 aircraft. Hawaiian Airlines pilots have announced they believe their contract negotiations with the company have reached an impasse. Up to 14,000 British Airways cabin crew are to vote on whether to take industrial action in a dispute over contracts.
Regulatory & Safety
Southwest Airlines Co. has agreed to settle a shareholder lawsuit that grew out of safety violations at the carrier and will pay the investors' lawyers $3.5 million. The Delta pilots who overshot their destination by 150 miles had their licenses revoked after the FAA concluded they flew “carelessly and recklessly.”
Airline Industry Finances
For U.S. airlines, last quarter, small was good. The three smallest of the major carriers – Alaska, JetBlue and AirTran – were the only ones to post profits. The biggest airlines reported the biggest losses. IATA reported that September international passenger traffic rose 0.3% year-over-year while cargo traffic fell 5.4%, but warned that the apparent improvement is "misleading" because yields remain disastrous. Airline confidence about profitability over the next 12 months has turned a corner, according to IATA’s latest Business Confidence Index. But European airline views about the future are far less glowing than their counterparts' in other areas of the world.
Focus On American Airlines
American Airlines says it will close a Kansas City, Mo., maintenance base next September because reduced flying means less need for such facilities. The company told employees about the move in a letter Wednesday. The union representing flight attendants at American is supporting the company's bid to win antitrust immunity and work more closely with British Airways and Iberia. That puts the flight attendants at odds with the pilots' union at American, which opposes immunity. A third union at American, the Transport Workers Association endorsed the antitrust immunity bid in June. And Sir Richard Branson, President of rival airline Virgin Atlantic, said in a letter to President Obama in August: “BA and AA are seeking antitrust immunity because it will enable them to squeeze existing Heathrow-US competitors off key routes. Indeed, the European Commission told British Airways, American and Iberia that they may have to give up take-off and landing slots to press ahead with a transatlantic tie-up.
Miscellaneous
Japan set the stage for a huge bailout of Japan Airlines on Thursday, telling the struggling carrier to turn to a state-backed body for assistance — a move that ruled out a tougher stance by a new left-leaning government in Tokyo against the country’s powerful corporations... awaiting takeoff, seatback grinding your knees, seatmate snoring, babies wailing and you wonder — who's to blame? Well, Count von Zeppelin, it turns out?battery fires in personal electronic devices can be scary?more than half of the 22 battery fires in the cabin of passenger planes since 1999 have been in the last three years?one air safety expert suggested that these devices might be “the last unrestricted fire hazard” people can bring on airplanes?the chairman of the House Homeland Security Committee on Wednesday said health authorities were underprepared for the increase in H1NI cases. Chairman Bennie Thompson (D-Miss.) also said federal agencies would be in bad shape if a mutated strain of H1N1 developed or if the nation faced another public health crisis while dealing with the so-called swine flu?visit Flu News Dashboard
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Edited By Business Travel Coalition
Airline Division News, Week Ending October 23, 2009
October 23, 2009
Airline Division News Items
Teamsters Airline Division Files with the NMB to Represent Continental Fleet Service Employees
On October 16, 2009, the Airline Division filed an application with the NMB to investigate the representation of the more than 7,600 Fleet Service Employees of Continental Airlines. Since this employee group is not currently represented, the application was accompanied by signature cards providing evidence that more than 35 percent of the employees request an election. In addition, the Airline Division requested that the NMB use the voting procedures followed under the NLRA, namely that majority-voter principles be used.
The APA Pickets DOT, and Teamsters Add Their Support
The Allied Pilots Union picketed outside the U.S. Department of Transportation in Washington, D.C., on Wednesday as the American Airlinespilots pushed their opposition to a joint business venture among American Airlines, British Airways and others.
The union had three major points it wanted to make:
1. International airline alliances cause U.S. job outsourcing.
2. International airline alliances are anti-competitive.
3. International airline alliances diminish national interests by circumventing existing restrictions on foreign control and influence over U.S. air carriers.
The American pilots union picked up support from the Teamsters, who issued a statement opposing the alliance as well.
House Approves Airline Safety Bill
The House approved a sweeping airline safety bill that aims to correct the problems brought to light by the Feb. 12 crash of Continental Connection Flight 3407 in Clarence, which claimed 50 lives. By a vote of 409 to 11, lawmakers approved legislation that — if eventually agreed to by the Senate — would dramatically boost the amount of flight time a pilot needs to get hired by a commercial airline. The bill also would make it far easier for airlines to see pilots' flight records before they are hired. In addition, the bill imposes stringent training requirements to make sure pilots know how to operate stall recovery systems and forces airlines to develop fatigue risk management systems for pilots.
Air Tran Mechanics Have Ratified New Contract
Air Tran Airways, a subsidiary of AirTran Holdings Inc (NYSE:AAI), and the International Brotherhood of Teamsters, Local 528, announced on Wednesday the membership ratification of a new 40-month collective bargaining agreement. The agreement covers around 400 AirTran Airways mechanics and inspectors based in Atlanta, Orlando, Baltimore/Washington, Boston, Dallas/Fort Worth, Fort Lauderdale and Milwaukee. Features of the new agreement include improved wages, benefits and working conditions. The agreement became effective as of 1 October 2009, the amendable date of the previous four-year agreement.
Continental Mechanics Will Resume Negotiations With the Company
After more than a month’s hiatus, Continental mechanics and the company will resume negotiations on November 9 and 10 in Houston.
Week in Review News Items
Aircraft Maintenance Outsourcing
Shortly before sunrise on Jan. 23, 2009, passengers on US Airways Flight 518, who were flying from Omaha to Phoenix, were startled by a terrifying shriek. The pressure seal around the main cabin door was failing. The plane diverted to Denver. Everybody was safe. Now imagine you're a pilot and you're flying a Boeing 737 filled with more than 100 passengers. Suddenly, the gauges show that Engine No. 2 is in trouble, so you shut it off and start flying the plane on the other engine alone. That's a troubling enough scenario. But what if it's worse than that: What if it turns out that a mechanic mixed up the wires in the cockpit— so your gauges are reversed and you actually turned off the one good engine? As more and more major U.S. airlines shift their repair and maintenance work to outside firms — often in foreign countries — American Airlines is taking a different approach. Instead of outsourcing its airplane maintenance to Mexico and South America, American is sticking with its own crew of 6,000 mechanics based in Tulsa, Okla., to service its fleet.
Regulatory & Safety
NTSB says that it, along with FAA, will investigate how a Delta Air Lines wide-body jet landed on a taxiway in Atlanta instead of a runway on Monday morning. A Northwest Airlines flight from San Diego, California, overshot the Minneapolis, Minnesota, airport by about 150 miles Wednesday evening, and federal investigators are looking into whether the pilots had become distracted, as they claimed, or perhaps fell asleep. Safety investigators have sent government agencies a wake-up call about sleep apnea, a disorder that's showing up in a wide range of transportation accidents.
Airline Industry Finances
Flights were quite full in September and the suspected reason was confirmed by ATA: It took lots of cheap tickets to get people onto airplanes. The average price travelers paid to fly one mile in September was 16.6% lower than a year ago on domestic flights. The U.S. travel industry appears to have survived the recession but has yet to recover from it, earnings results reported from the third-quarter indicate. Delta and US Airways reported losses for the quarter on Thursday, but they said they saw signs that travel is beginning to pick up. Demand, measured against last year, improved in each month in the third quarter, and is up again so far in October. US Airways said advance bookings for flights in the fourth quarter were stronger than expected.And what kind of airline offers fares as low as $9, expands during a crippling recession and ignores high-paying business travelers? The nation's most profitable airline: small but nimble Allegiant Air.
Miscellaneous
A U.S. lawyer filed suit against Airbus and many aerospace suppliers on Monday seeking unspecified compensation on behalf of relatives of eight of the 228 passengers who died when an Air France flight crashed off the coast of Brazil in June...it's a little early to consider making any travel plans for the 2016 Olympics in Rio, but travel planners really do need to be aware of just how dangerous Rio and other cities in Brazil are?Japan Airlines Corp., seeking its fourth state bailout since 2001, resumed talks with Delta and American Airlines over a possible capital alliance?the air transport business has undergone a massive transformation, accelerated by the economic malaise of the past 18 months and low cost carriers on a worldwide basis have, so far, survived better than legacy carriers, and have even profited from their demise in many cases.
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Edited By Business Travel Coalition
AirTran Airways Mechanics and Inspectors Ratify New Agreement
October 22, 2009AirTran Airways, a subsidiary of AirTran Holdings Inc (NYSE:AAI), and the International Brotherhood of Teamsters, Local 528, announced on Wednesday the membership ratification of a new 40-month collective bargaining agreement.
Teamsters Out to Organize More Continental Workers
October 17, 2009- 1 of 11
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