January 22, 2010 Newsletter

Airline Division Submits Comments on TSA Notice of Proposed Rulemaking, Aircraft Repair Station Security

In comments submitted supporting the proposed regulation to improve data collection and raise security standards at repair stations, the Airline Division has noted that any regulation that allows repair stations to maintain a lower standard of safety and security condones the creation of a "weak link" in the security protocol that could make such stations the focus of efforts to undermine the security of the entire system. "These stations must be required to immediately adopt a standard security program (SSP) and implement measures to protect the security of the aircraft and components maintained at the repair station and the facility," said Division Director Captain David Bourne. "Any repair station that works on any U.S. registered aircraft must be held to the standards established in 14 CFR Part 121 and 49CFR Part 1542 that govern air carriers and airports."

"While we support and agree with proposed regulations on Aircraft Repair Station Security, they fall well short of establishing a single high security and regulatory standard for aircraft maintenance. The Christmas Day attempted bombing of Northwest Airlines Flight 253 was yet another wakeup call that showed how terrorists will go to any length to exploit security weaknesses. The TSA must immediately close the loophole on overseas repair station security," Bourne went on to say.

"Until these potentially dangerous inconsistencies in aircraft security are addressed, the Teamsters will continue to push for the establishment of one high standard for safety and security at all facilities servicing US aircraft worldwide, and for all employees working on those aircraft," Bourne said. The highly trained, certificated US aircraft mechanics whose jobs are increasingly performed by unlicensed mechanics at unsecure overseas facilities, our pilots who fly the planes and the American flying public, deserve no less."

IBT Benefits Department Director Engages UAL on Health & Welfare

The Teamster bargaining team resumed negotiations with United Company on Tuesday, January 19th in Chicago, with a continuation of meetings among various sub-committees assigned to discuss several of the open articles remaining in negotiations. Thursday morning, Airline Division Director David Bourne and Director of the Teamsters Benefits Department John Slatery led a Union contingent that met with United's benefit experts to collect the information necessary to prepare for discussions on the Health and Welfare section of the contract. Chief Negotiator Clacy Griswold, IBT Attorney Ed Gleason, and IBT Economist Norman Weintraub attended for the union and while the meeting did not involve the passing of proposals, it was deemed productive in terms of information sharing and compiling the data necessary to allow the Union to engage in official talks on medical and other benefit issues in future discussions.

Omni Negotiations Continue in Dallas

Omni Air Negotiating Committee Chairman Clark Cameron, Charlie Wallace, and Walt Reulbach, assisted by Business Agent John Herron and Traey Liggett from Local 747, met with Omni's management team in Dallas this week to continue negotiations toward the pilot's first Collective Bargaining Agreement.  Both parties brought their experts to facilitate very in depth presentations and discussions involving Medical/Health benefits as well as 401k plans and features.  The next round of negotiations will be held in the beginning of March.

Atlas Recalls Pilots As Start Date for Specialized Passenger Service Nears

Atlas Air Worldwide has begun a recall of at least ten furloughed pilots as the date approaches for the start of their specialized passenger service, according to Captain Steve Richards, co-Chairman of the WWC Transition Executive Council (TEC) at Local 1224.

"We're very pleased to welcome our furloughed brothers back and look forward to hopefully welcoming back more in the not too distant future," Richards said. "In addition to the 747-400's that have been added to our fleet for this service, it now appears that the company will be retaining a portion of our Classic fleet. Further job security for our crewmembers in the current economy is very positive."

Atlas flight crews, members of Local 1224, will be operating two specially configured 747-400 aircraft in a business configuration on a long term charter contract providing three roundtrip, non-stop flights a week between Houston and Luanda, Angola for the employees of USAEA, which is engaged in long term energy projects in West Africa.

Amerijet Crewmembers Operating Relief Flights to Haiti

Amerijet crewmembers, represented by Local 769 are continuing to operate relief flights to earthquake stricken Haiti. In addition to operating the flights Local 769 is spearheading the collection of relief supplies for the victims, according to Business Agent Daisy Gonzalez. "Since the earthquake, Amerijet crewmembers have not only stepped up with their piloting skills, but their hearts," Gonzalez said. Along with other members of Local 769, they have coordinated the collection of supplies for the victims of the Haitian earthquake, including non perishable foods, clothing, camping and shelter equipment, tents and tarpaulins at the Local 769 Union Hall for distribution.

Anyone in the South Florida area is welcomed and encouraged to drop off donations. The union hall is located at 12365 West Dixie Highway, North Miami, FL 33161. They can be reached at 305-642-6255.

Week In Review News Items

Labor Developments

The Air Line Pilots Association International, in a major financial setback, is about to pay $44 million to settle a lawsuit brought by a group of senior United Airlines pilots…American Airlines and the Association of Professional Flight Attendants didn't work out a deal in their 11 days of "lockdown" negotiations that ended Thursday. But the union won't be asking the National Mediation Board to declare an impasse and start the clock ticking for a possible strike — at least not yet — and a union representing British Airways cabin crew said Monday it will hold a strike vote in a dispute over pay, job security and working conditions.

Aviation Security

President Obama's nominee to head the TSA, Erroll Southers, withdrew his name on Wednesday, saying that Republicans had politicized the appointment–acting on intelligence failures exposed by the attempted bombing of a Detroit-bound airliner on Dec. 25, Prime Minister Gordon Brown announced a major tightening of British aviation security measures on Wednesday, including the creation of a new no-flight list of terrorist suspects similar to one maintained by the U.S — the EU and U.S. agree on the need to strengthen airport security measures but consensus on the use of body scanners at airports is still pending — and in the tense new world of air travel, we're stripped of shoes, told not to take too much shampoo on board, frowned on if we crack a smile. The last thing we expect is a joke from a TSA screener — particularly one this stupid.

Airline Industry Finances & Structure

AMR Corp. started last decade with a huge profit, and that was about the last really good financial news for the parent of American Airlines and American Eagle Airlines. The Fort Worth-based company finished a miserable decade by losing $344 million in the fourth quarter of 2009, $1.47 billion for all of 2009 and $10.37 billion for the decade — in a bit of positive news, Continental finished a tough 2009 with a small fourth-quarter profit, while Southwest earned just enough to report its 37th-consecutive profitable year…and the LCC sector has triggered an ancillary revenue revolution, with airlines worldwide expected to generate $58 billion in ancillaries this year.

Japan Airlines Spotlight

With estimated $10.25bn net liabilities, JAL is believed to be Japan's biggest bankruptcy by a non-financial firm and follows three government bailouts in the past decade. The way is now clear for a brutal reconstruction, cutting staff by a third to 31,000, scaling down operations by 25 per cent to 30 per cent, forcing a Y350bn haircut on the airline's bankers and wiping out existing shareholders. Administration of the 58-year-old flag carrier, privatized in 1987, is likely to last three years — alarmed by the amount of government involvement in JAL's restructuring, the president of All Nippon Airways warned Wednesday that the state-supported revamp scheme could undermine competition in the airline industry — as JAL declares bankruptcy and Delta closes in on a new partnership, the OneWorld alliance and its members are contemplating the wave of change that is hurting them so much — but American will fight hard to hold onto partner JAL and will object vigorously if JAL tries to link up with rival Delta.