August 20, 2010 Newsletter

Atlas Dispatcher Discussions Continue, Progress Reported

Contract discussions for a first contract for the aircraft dispatchers of Atlas Air Worldwide (AAWW), have made progress during the past two weeks. Tentative agreement has been reached on Article 10 (Furlough and Recall), with progress reported in other areas including Article 15 (Grievance, Discipline, and Discharge. Several other articles have been drafted, with some already being discussed, with proposals having crossed the table. These articles we will be focus of meetings scheduled for September, October, and November.

A meeting with the company was held on September 8th to revisit staffing and other open issues, with the company expressing concern over what kind of productivity can be expected from a Dispatcher.  Discussions were held over a survey that would help the company understand the flight planning process more clearly and exactly what is entailed to perform the dispatcher’s job. Further discussions are planned. Additionally, nine additional negotiation dates have been confirmed for the next three months.

The dispatchers are members of Local 210 of the Airline Division. 

UAL Talks Continue

Negotiations continued August 17th, 18th, and 19th at Teamsters Local 856 offices in San Bruno, CA. Over the course of the meetings a new article, Emergency Field Service, was discussed extensively. This article is being constructed uses the current Continental contract language as a model, with modifications to best serve the United membership.

Negotiations are scheduled for the week of August 30th in Chicago.

Week In Review News Items

Labor Developments

As Delta Air Lines workers prepare to vote in massive union representation elections later this year, labor leaders say wins at the company could influence organizing around the Atlanta area and the South. The Teamsters seek to organize about 340 Coca-Cola Enterprises bottling plant workers in the Atlanta area, along with mechanics at Atlanta-based Atlantic Southeast Airlines. Teamsters airline division director David Bourne said he thinks the Delta elections could influence organizing at other airlines and at companies beyond the airline industry. “Just the fact that (workers elsewhere) see unionization working and growing is a positive,” he said.

Shares in U.S. LCCs were all strong this week, with shares in JetBlue, Southwest, Allegiant and AirTran gaining ground. Meanwhile, DOT's Bureau of Transportation Statistics reported that U.S. LCC full-time equivalent employee (FTE) levels in Jun-2010 increased 0.9% year-on-year, with five LCCs reporting year-on-year increases, namely: Frontier Airlines (+10.1%), Allegiant (+10.0%), Virgin America (+8.8%), Spirit (+7.8%) and JetBlue (+4.3%). Southwest and AirTran reported year-on-year FTE reductions.

Legislative & Regulatory 

The NTSB said it is dispatching a team of investigators to assist the government of Colombia with its investigation of Monday’s plane crash on San Andres Island. AIRES flight 8250 originating from Bogota crashed during landing at Gustavo Rojas Pinilla International Airport on the Colombian island of San Andres at around 1.49 a.m. local time on Monday…U.S. government investigators say metal fatigue caused a hole to rip open in the roof of a Southwest Airlines jet as it cruised at 35,000 feet last year.

The U.S. government is close to proposing a substantial fine against American Airlines for alleged maintenance and inspection violations that led to the grounding of hundreds of planes and the cancellation of thousands of flights in 2008…investigators are seeking the identity of a caller whose hijacking threat left a jetliner grounded and passengers wondering why two of their own were escorted off the aircraft by authorities. Police said that a clerk at a business in Alameda, a city across San Francisco Bay from the airport, reported receiving a threat specifically directed at the American Airlines flight.

Airline Industry Finances & Structure

The number of passengers buying premium airline tickets jumped again in June, as economic recovery kept first and business seats filled, IATA said on Monday. But there are signs that growth slowed in the second quarter as economic activity returned to pre-crisis levels…travel on major U.S. airlines fell roughly 1 percent in July with one key measure of revenue growth slowing, according to an industry trade group that also said the sector's finances remain fragile.   

United Airlines’ and Continental Airlines’ stock prices edged higher after announcing plans to hold a special meeting of stockholders on 17-Sep-2010, to vote for the approval of their merger agreement…and while airlines have navigated back to profitability, airports continue to suffer from the effects of the recession, and their struggle to find revenue is increasingly putting them at odds with the carriers they serve.

Miscellaneous

American Airlines is reserving some seats in the first few rows of coach for flyers to purchase at airport kiosks only. The airline is calling the product Express Seats and is pitching it as a benefit for passengers who want to get on and off the plane before the rest of coach…Delta is to increase the number of flights from Heathrow to both Atlanta and Detroit this winter, in addition to adding a third daily flight to New York in September…a battle is brewing in the court of public opinion and in Congress over whether U.S. passengers should be allowed to use cell phones in-flight as many foreign airlines now permit but which critics say is unsafe and annoying. Advocates of in-flight cell phone use hope to overturn bans that they say are outdated, unfair and do nothing to promote safety in the skies…Continental Airlines and United Airlines have unveiled the new combined livery for after their merger is complete. The tie-up will create the world's largest airline, which will be called United.