April 2, 2010 Newsletter

Flight Options Pilots Ratify First Labor Agreement

International Brotherhood of Teamsters, Airline Division, Local 1108 and Flight Options, LLC, the Cleveland-based provider of luxury business jet fractional ownership and jet card programs, announced that pilots have ratified a first labor agreement on March 31, 2010. 

“This was a significant milestone for Flight Options.  Since our inception, our flight crews have been the cornerstone of our operation,” stated Kenn Ricci, Chairman of Flight Options. “The new agreement further solidifies Flight Options’ position as a premier employer of pilots and ensures the long term success of our company.”  

“The new contract with Flight Options is the basis for a strong labor-management partnership between the Teamsters and Flight Options, LLC,” said Captain David Bourne, Teamsters Airline Division Director.  “A first contract that works for pilots and their families, as well as management and Flight Options customers, is a great achievement for the entire industry.”  

After more than three years of negotiations, the Teamsters reached a tentative agreement with Flight Options, LLC management on January 28, 2010.  Ballots were counted in Cleveland, Ohio on March 31, 2010.  The agreement was ratified by 88 percent of the union’s membership.  

“This contract would not be possible without the collective effort of the entire organization,” said Michael Silvestro, CEO.  “I am particularly proud of the fact that we are able to make a significant financial commitment to our pilots even in this difficult economic environment.”  

The parties will convene in mid-April for an official contract signing ceremony.  The new agreement provides for an immediate salary increase, longevity increases, additional paid time off, job security protections, an expansive basing system, and a grievance and arbitration process.  

“This contract is the product of thousands of hours of work and a joint commitment to the success of our pilots and the company,” said Capt. Mat Slinghoff, President of Teamsters Local 1108.  “The pilots I represent have achieved a milestone and they look forward to playing an active role in the company’s future success.” 

 CAL Labor Unions Meet, Pledge Joint Cooperation

The leadership of Continental’s three main unions, Teamsters Airline Division, I.A.M and ALPA, met this week to discuss concerns each group is facing in their negotiations and how they can work cooperatively to support each other’s goals in contract talks. In a joint letter to their members, signed by each of the leaders, they said:  

“…Today, we came together to discuss our goals, listen to the issues that face each of our respective members and learn about the areas where we can work cooperatively. Among the topics discussed were the cockpit/cabin jumpseats, negotiating progress and timing within each of our groups, management composition at Continental and a new initiative to resolve personnel issues within the union structure and away from management. This meeting was an important step towards what will become a dedicated effort to share information and provide mutual support for each other as unionized employees of Continental Airlines…”  

The groups have agreed to a timetable of regular meetings and communications to their respective memberships as well. “In today’s operating environment of alliances, joint ventures and other new ways of conducting business, it is important for us as labor to form our own coalitions and relationships,” they said.”We will be better positioned to advance our interests, both individually and collectively, by comparing ideas, showing support for fellow work groups and coordinating our efforts…Thus, we hereby pledge our mutual support for the benefit of Continental Airlines employees represented by the Air Line Pilots Association, Int’l (ALPA), the International Association of Machinists and Aerospace Workers (IAM) and the International Brotherhood of Teamsters. We look forward to a productive and rewarding relationship,” they concluded.   

Cape Air Leadership Meets With Caribbean Crews

In a move well timed to escape the waning ravages of this year’s winter season, the leadership of Cape Air was joined by Airline Division representatives John Herron and Traey Liggett as they met late last week with the Caribbean based crews of the carrier; who recently rejoined the union after a re-vote ordered by the NMB.  

Acting President Marilyn Rhude and Secretary Kim Mazzolini met with the crews and their families for two days, answering questions and providing information about the status of the negotiations and the structuring of the leadership and committees. They also spoke about the status of the membership drive, explaining the benefits of membership. “Kim and I were very happy to have a chance to meet with old friends that we had not seen for awhile, as our base structure is so diverse,” said Captain Rhude. “We had a great response and we’re looking forward to getting to our other bases as soon as time allows.”  

ExpressJet Negotiations Resume  

Negotiations for ExpressJet resumed on March 23rd with a visit from interim CEO Pat Kelly.  The committee received an update on the search for a new CEO and a brief presentation on the company’s current financial status and plan for the year. Discussions continued on Article 18, (Overtime), and the group beginning discussions on Articles 10, (Leaves of Absence) and 14, (Safety and Health); with a tentative agreement on Article 14 achieved at week's end.  

Negotiations are scheduled to resume on April 14th.  

Horizon Mechanics Discussions Continue  

The Teamsters and the company met for continued negotiations at the Embassy Suites, in Portland, Oregon the week of March 23rd. In opening remarks, the company informed the union that they continue to search for an outside vendor to perform Q400 C checks. The search has been narrowed to two vendors; however, the company has not made a final decision to outsource the maintenance. No agreements have been made, and the company will continue to discuss this issue with the IBT.

Week In Review News Items  

Labor Developments  

A strike by British Airways cabin crew entered its third day on Monday, with more walkouts threatened for next month, as separate talks to avert the first national rail strike in 16 years got under way…IBT, which has a membership of about 1.4 million, spent $285,000 lobbying the federal government in the fourth quarter, according to a disclosure report. That's down from $309,000 spent in the third quarter of last year and $373,000 spent in the fourth quarter of 2008.   

Regulatory & Safety  

Qantas Airways was on Thursday investigating an incident in which an Airbus A380 damaged tires on landing in Sydney, showering sparks and scaring passengers…a United Airlines Boeing 777 jet bound for Beijing narrowly missed a small plane in midair shortly after it took off Saturday morning from SFO…thousands of jets landing and taking off in Detroit were assigned dangerous flight paths during at least six months in 2007 despite repeated warnings from air-traffic controllers that the operation violated federal rules…and next week Southwest Airlines changes the way it flies, a major milestone in the push to modernize the nation's air travel system. On April 6, the airline will change out the cockpit software in two-thirds of its fleet; giving pilot’s different instruments and a new look to displays. The radical upgrade will enable Southwest to fly precise satellite-based navigation approaches to airports.  

Airline Industry Finances & Structure

The global economic downturn took 68.6 million scheduled airline passengers out of the USA's skies over the last two years…however, airlines are climbing out of recession with further strong increases for passenger travel and freight in February, industry association IATA said on Tuesday. One sign of recovery was record capacity usage for passenger travel in February; traditionally the weakest month for air travel…American Airlines is turning up the heat in an escalating battle in New York City, the USA's largest air-travel market. American on Wednesday announced 23 new flights, terminal refurbishments at LGA and JFK airports, a joint marketing and advertising partnership with New York's tourism promotion arm and a new flying partnership with JetBlue. The newly emerging regional airline model is gaining more complexity as holding companies that try to build brands start to compete with their regional-capacity purchase partners. That is what is being played out, with as yet unknown consequences, between Delta and Republic…and two of the nation’s busiest airports are again becoming a battleground between airlines and the FAA — and the scene of some unlikely airline pairings. The real issue, again, is whether the FAA or DOT has any legal bearing over domestic competitive matters concerning U.S. airlines.  

Miscellaneous  

New York-area flights make up 12 percent of operations at the 35 largest airports while accounting for almost half the delays, according to the Air Transport Association. All but eight of the most-delayed flights involved regional carriers such as Delta's Comair unit and Continental partner ExpressJet…TSA nominee Maj. Gen. Robert Harding told senators last week that he hoped to quickly transform aviation security by having screeners interact more with airline passengers and moving "closer to an Israeli model." That change will not likely happen any time soon because Harding withdrew Friday as President Obama's nominee for TSA administrator…and the perception persists among many passengers that a commercial airline accident is all or nothing — either disaster is averted or everyone succumbs. And while many aviation professionals have long known that surviving an accident is not only possible but increasingly likely, educating the public remains a serious challenge.