Airline Division News Items
NMB Releases Amerijet into a 30-day Cooling Off period
The National Mediation Board notified Amerijet that they have been released into a 30-day cooling off period after which self-help could potentially begin. Self-help can include a strike against the carrier. The 30 day period is up at 4 p.m. on August 27, 2009. Amerijet pilots have been trying to get a contract since early 2006. The parties have been through NMB mediation to no avail. In fact the carrier unilaterally cut pilot pay by 10 percent. Given this history, the Teamsters Airline Division sought to be released to pursue self help measures.
Southwest Airlines Announces It is Interested in Bidding for Frontier
Southwest submitted a nonbinding bid for Frontier of $113.6 million. Frontier will be sold at auction in bankruptcy court in August. Southwest said it is prepared to increase its offer if necessary. Southwest's offer of $113.6 was the minimum necessary to qualify for the auction given Republic Airways Holdings' $108.8 earlier offer that set in motion the auction process. Southwest must make a binding bid by August 10. In the meantime, Southwest will have the opportunity to take a closer look at Frontier's books and contracts.
Southwest said it would operate Frontier as a wholly owned subsidiary for a period of time with its Airbus equipment and personnel and the Frontier brand. Over time Frontier employees would be hired into Southwest to support its fleet growth and expanded operations. The Airbus fleet would be retired and Southwest would acquire more 737s.
Republic had also earlier announced it will buy Midwest Airlines. That transaction is scheduled to take place whatever happens to the Frontier purchase.
UPS Mechanics Negotiating in Minneapolis/St. Paul This Week
United Parcel Service and its mechanics and related employees continued negotiations under a NMB mediator this week. Several sections of a new contract were tentatively agreed to but more remains to be done.
Teamsters Airline Division Working to Secure a Pension Plan for United Mechanics
Chief negotiator Clacy Griswold held a meeting of the negotiating committee's Pension Sub-Committee in Denver this week. The Pension Sub-Committee is composed of Clacy Griswold-Union Chair, Ed Gleason-IBT Legal, Peter Finn-Communications, Kevin Giegoldt-ORD, Dion Cornelious-LAX, Larry Calhoun-East Coast Line, Jock Creach-West Coast Line, Bob Fisher-IAD, Rick Olson-DEN, Joe Schwirian-SFO.
Atlas Air World Wide (AAWW) Pilots in Negotiations
Negotiations on a new contract took place in Purchase NY from the July 21 through the 24. A number of union proposals were delivered during the week. Good progress was made on five sections. The IBT AAWW Negotiating Committee will meet in Washington, DC on August 4 and 5 to prepare for the next bargaining sessions. A Scope Subcommittee will meet with the company on August 6 in Washington, DC. The next regular bargaining session will be in Chicago , August 10 through 12.
Week in Review News Items
Labor Developments
Talks between BA and the union representing its cabin crew have been suspended after failure to agree. The Unite union which represents 28,000 workers at the airline, registered a failure to agree after a fortnight of negotiations with BA at the UK arbitration service ACAS. The failure of the talks brings a summer strike at the carrier closer. The Association of Flight Attendants-CWA union moved Monday to seek a representation election at Delta Air Lines which acquired Northwest Airlines last year.
Safety and Oversight
An Air France flight from Rome to Paris
earlier this month briefly lost its speed readings due to faulty sensors in the latest safety scare involving speed sensors. The European Aviation Safety Agency plans to recommend a ban on the type of speed sensor installed on the Air France Airbus jet which crashed in the Atlanticlast month. Airbus moved to urge airlines on Friday to replace air speed probes on its A330 and A340 jets with models made by U.S.firm Goodrich. Meanwhile, the U.S. Congress is taking steps to toughen regulations on pilot training, qualifications and hours in response to accidents involving regional airlines. However, FAA Administrator Randy Babbitt says the bill "is not necessary" because the agency has already taken sufficient steps to address the issues raised by the crashes.
Airline Industry Financial Developments
Airlines carried 16.5% less cargo and 7.2% fewer people in June than the same month a year ago, with no sign yet of the global recession lifting. The International Air Transport Association said it could take years for air freight — a leading indicator of the health of world trade — to return to 2008 levels. British Airways reported its first ever operating loss for the early summer months on Friday as its most lucrative long-haul business passengers travel less and trade down to cheaper tickets. Irish budget airline Ryanair cut full year profit forecasts to the lower end of its range on Monday due to falling yields. Lower oil prices boosted the broad U.S. airline sector and major airlines stood out after an analyst noted their share prices were likely to outperform those of discount carriers.
Miscellaneous
Southwest Airlines on Thursday jumped into a bankruptcy-court auction for Frontier Airlines potentially thwarting a rival bid with a $113.6 million offer for the smaller carrier?American announced that checking the first bag( usatoday.com/travel/flights/2009-07-27-aa-bag-fee_N.htm?csp=34)will cost $20, up from $15, and a second bag will cost $30, up from $25?The Seattle Times' aerospace reporter Dominic Gates has just published some additional revelations concerning what Boeing insists is the tiny side-of-body (a.k.a wing failure) issue with the plastic fantastic 787 Dreamliner?The Senate Commerce Committee last week approved the FAA reauthorization bill containing the bipartisan Boxer-Snowe Airline Passengers Bill of Rights which, among other protections, allows passengers the option to return to the terminal after sitting on the tarmac for three hours.
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