Airline Division News Items
Congratulations
After much debate and an extra day before voting, the U.S. House of Representatives passed the FAA Reauthorization bill that contains our Express Carrier Employee Protection amendment intact late yesterday. The bill passed 277 – 136. Yes, it contains the provision that properly classifies us under the appropriate labor laws; certified airline employees under the RLA and all other employees under the NLRA.
We have successfully taken the steps to "right the wrong" of the 1996 FedEx Special Deal in the House of Representatives. This hurdle in the House is now behind us but more lie ahead in the U.S. Senate. We must remain focused and willing to move this bill through the system to the Presidents's desk to regain our true right to freedom of association.
Also, provisions that advance our fight to raise safety standards for foreign repair stations were retained intact, particularly, increases in U.S.inspections to two per year; and a requirement to include drug and alcohol testing. We wish to thank all the mechanics that assisted us in some of the 200 visits to Capitol Hill to lobby for maintenance outsourcing changes. The Teamsters have led the way in the fight for outsourcing oversight reform.
Our Latest Foreign Outsourcing Legislative Proposal
The Teamsters has revised our legislative proposal on maintenance outsourcing to foreign repair stations. This current proposal drops the call for a moratorium on new foreign outsourcing, but goes well beyond the provisions included in the just adopted House Bill. Our current proposal is attached.
The Teamsters and the Business Travel Coalition Call for a National Transportation Policy
Following the NTSB hearings on the Colgan Air crash near Buffalolast winter, the IBT and the BTC issued a joint press release and an analysis that called for a "single high regulatory standard for all aviation". Just as aircraft maintenance outsourcing, both in foreign and domestic repair stations should be subject to the same high safety standards, so too should regional and major carriers be on a par when it comes to the effectiveness of safety oversight given their different business models. The press release and analysis are attached.
United Working with the Teamsters Collaborate on the Recall of 107 Mechanics
United announced on Thursday the recall of 107 line mechanics from furlough as part of a continuing commitment to enhance both aircraft reliability and cabin cleanliness/workability for its customers. United credited the Teamsters with helping to make this recall possible. Jim Keenan, senior vice president-United Services said, "The IBT approached us to discuss opportunities to efficiently improve the workability of our aircraft, and we are pleased that collaboratively we were able to work out a way to bring these mechanics back?In this difficult economic environment, we continue to focus on providing our customers with a great service."
Division Director Stresses Communications at the Local Level
Airline Division Director David Bourne wants to emphasize that all airline locals should do all they can to communicate the work being done at the IBT on behalf of airline members. The latest example is the passage of the FAA Reauthorization Bill in the House with several major provisions which the IBT lobbied for for months. These achievements can make a big difference in the lives of the members and should be passed on to members at the local level.
Republic Airlines Has Announced the Acquisition of 100-seat Aircraft
Republic has announced the acquisition of two Embraer-190 100-seat aircraft. The current contract does not a set out a pay schedule for 100-seat aircraft. But, the current contract does set out procedures for establishing pay rates for new aircraft. The parties are to meet within 15 days of a request to meet to negotiate new rates of pay and, if new rates cannot be agreed to, either party may submit the dispute to final and binding interest arbitration.
Atlas Reports Strongest Profit in its History
Atlas Air Worldwide Holdings has reported a first quarter profit of $23.4 million compared to a first quarter loss last year of $5.3 million. The carrier said global air freight remains weak, but "appears to be showing signs of bottoming". With lower capacity in the industry, "any improvement in demand could have an early and meaningful impact on Atlas".
Week in Review News Items
Labor Developments
Major unions representing airline workers May 13 urged senators to include several labor-backed provisions in FAA legislation expected to be drafted by the Senate Commerce, Science, and Transportation Committee. A Teamsters official endorsed a provision in the House committee bill that would amend the Railway Labor Act, which governs labor relations in the airline industry, to eliminate coverage of "express companies," such as FedEx Corp.'s Express division. "Employees at FedEx Express who perform precisely the same work requiring the same skill sets are treated dramatically different under our labor laws and are subject to the [RLA] even though they never touch an airplane," Ken Hall, a Teamsters vice president at-large, said. IBT also endorsed a provision in the House FAA bill that would require FAA to conduct a minimum of two inspections each year of foreign maintenance and repair stations that have been certified to work on U.S.commercial aircraft.
Regional Carrier Issue
Alex Lapointe, a 25-year-old co-pilot for a regional airline, says he routinely lifts off knowing he has gotten less sleep than he needs. And once or twice a week, he says, he sees the captain next to him struggling to stay alert. In response to the regional carrier issue, the IBT Airline Division and the Business Travel Coalition have joined forces in petitioning Congress to adopt a "coherent" national air transportation policy and set a single regulatory standard for all carriers. The current regional airline model comes under fire in the IBT/BTC's joint analysis of the Colgan Air accident in which 50 people died. And while the carriers seek to operate efficiently, the study notes "the model itself ? which appears to be compelling participants to compete themselves inexorably towards the lowest possible cost ? appears incompatible with optimum safety, security and customer service." The IBT/BTC analysis says passengers, whether flying a major or regional, have a right to expect the flights "will be operated by reasonably paid, carefully trained, fully experienced and career-oriented pilots."
Gulfstream International Airlines Inc., a training ground for many U.S. commuter pilots, faces a $1.3 million civil penalty for allegedly falsifying flight-time records, forcing crews to fly more hours than federal safety rules permit and providing substandard aircraft maintenance, according to the Federal Aviation Administration and Congressional investigators. A June 2008 inspection, according to the FAA, revealed that "unapproved automotive air-conditioner compressors" were installed on certain aircraft between September 2006 and May 2008. The airline grounded the affected aircraft and replaced the suspect compressors with approved aviation parts.
Airline Passenger Demand
The number of air passengers travelling business class fell by 19.2% in March compared to the same month in 2008, according to new figures from IATA. British Airways slumped to a record loss, nearly doubled its debt pile and abandoned its dividend, adding the tough conditions made it impossible to give any guidance for the current period. Air France-KLM is applying the brakes hard, as it tries to cut costs quickly to catch up with the sharp decline in its revenues, especially from its lucrative business travellers. The 25% run-up in oil prices over the past month has U.S. airline managers beginning to worry about another big cost jump on top of double-digit drops in demand and revenue.
Airline Customer Service
Airlines are doing a better job of taking care of the passengers they still have, according to a new study. Passenger satisfaction with airline service rose 3.2 percent earlier this year, the first increase in six years, according to a University of Michigan study. And after a nearly a decade of failed efforts to win rights for airline passengers, advocates may finally score some modest gains. Congress is considering three initiatives: requiring the airlines to provide passengers stuck on grounded aircraft with food, water, functioning restrooms and medical treatment (and possibly the option to get off the plane after three hours); establishing a consumer complaints hot line and publishing the phone number on boarding passes; and requiring airlines to disclose a flight's on-time record at the point of purchase.