Airline Division News Items
Airline Division to Develop New Website
The Communications Department of the IBT will develop a new self-contained website for the Airline Division. The site will still be linked to the Teamster.org site, however it will be all new and able to handle "rumor boards", podcasts, video, and blogging boards. This is the next step in the communications evolution of the Airline Division.
Capt. Bourne Met with Congressman Oberstar
Last week Airline Division Director David Bourne met with Congressman James Oberstar, Chairmen of the Transportation and Infrastructure Committee, which oversees air transportation in Congress. A full agenda of issues were discussed including, FAA Reauthorization, outsourcing, anti-trust immunity for airline alliances, and proposed Express Carrier legislation. Congressman Oberstar was told the IBT likes the outsourcing language in the FAA reauthorization bill, but we believe stronger language is needed including a moratorium on new outsourcing. Also, the FAA language gives three years for implementation, which if far too long in the IBT's view. A follow up visit was made to Cong. Oberstar's Chief of Staff, to reiterate the points made with the Congressman.
IBT Met with Congressman Dennis Kucinich
David Bourne visited with Congressman Dennis Kucinich (D-10th District Ohio) to cover Teamster aviation issues. The Congressman was strongly supportive of our issues.
IBT Team Met with CapeAir Pilots
Airline Division staff led by David Bourne met with Cape Air pilots last Thursday and Friday, to go over their issues. The meetings were very productive and a number of issues were fully discussed. We will update readers in the coming weeks.
Horizon Mechanics Attend Debate Between IBT Panelists and AMFA Representatives
The Teamsters Union proved their strength, credibility and power during a public discussion where they openly and honestly debated AMFA in front of Horizon mechanics and related. The debate comes just days after voting began in the Teamsters' organizing campaign. The debate gave Horizon mechanics who are currently represented by AMFA a clear picture of the resources and strength of the Teamsters. The voting will end on April 20, 2009.
Week in Review News Items
Labor Developments
Unions at American Airlines have picketed, worn buttons and rented billboards to protest what they consider unseemly management bonuses. Now they're using an interactive Web site game to skewer their CEO. The Transport Workers Union, which represents mechanics, bag handlers and other ground workers at American, said Thursday it is launching a new campaign to protest stock-based compensation for several hundred management employees later this month.
Safety & Oversight
Atlantic Southeast Airlines, a major regional carrier for Delta Air Lines Inc., said Tuesday it grounded 60 of its 110 50-passenger jets after an internal audit raised safety concerns. The groundings were expected to cause some flight delays for passengers flying ASA. The paperwork audit raised questions about whether the engines on Bombardier CRJ200 jets had been properly inspected according to the guidelines provided by the engines' manufacturer. And the Transportation Department inspector general released results from an investigation this week that said problems with air traffic controllers covering up errors isn't systemic. Congress requested the audit after a preliminary investigation showed Dallas-area controllers shifted blame for their errors to pilots or misclassified them as "non-events." The errors involved instances when planes flew too close to one another.
Oberstar Questions Virgin America's Citizenship
USHouse of Representatives Transportation Committee Chairman James Oberstar (D-Minn.) yesterday urged the Dept. of Transportation to review whether Virgin America still meets the requirements of US airline ownership and control laws, echoing earlier allegations by Alaska Airlines that Virgin America now is wholly owned by the UK's Virgin Group.
Problems at Air Canada
Air Canada, Canada's biggest airline, said its chief executive Montie Brewer resigned, effective April 1. Calin Rovinescu, a former senior executive with the airline, will succeed Brewer, the company said in a statement . Last month, UBS analyst Fadi Chamoun said the airline could be forced to file for bankruptcy protection if it does not secure additional financing and succeed in renegotiating covenants in credit card agreements. The decision to replace the executive, Monte Brewer, with Calin Rovinescu, who earlier led a restructuring operation at the company, has fueled speculation that Air Canada might seek bankruptcy protection for the second time in six years. Air Canada is facing a cash shortfall and increasing competition on crucial routes from its smaller domestic rival, WestJet. It also has pension problems and is facing contract talks with its unions.
Airline Demand
Passenger traffic aboard all airline flights in the United States will drop nearly 9 percent this year due to recession compared with 2008, when they carried 679 million people, the U.S.government said on Tuesday. The FAA estimate, if it proves accurate, would represent the largest decline in annual domestic capacity since the industry was deregulated in 1978. Continental Airlines said on Wednesday that companywide traffic fell 9.7 percent in March from a year earlier as the weak economy constrained demand for travel. On Friday Continental provided further evidence of the collapse in US air travel demand, reporting that March consolidated revenue per ASM plunged an estimated 19.5%-20.5% year-over-year while mainline unit revenue fell 18.5%-19.5%. Airlines' recovery from the current recession will be slower than in previous downturns owing to a substantial debt burden for consumers and businesses that is likely to curtail spending even after economic growth returns, IATA Chief Economist Brian Pearce told reporters this week in Washington.