Teamsters, World Airways Fail to Reach Concessionary Agreement
After attempts by World Airways to seek a second concessionary agreement within sixteen months, Teamster representatives of the Flight Attendants and Pilots of World Airways announced that bankruptcy discussions with their employer failed to yield an agreement on concessions their carrier was seeking.
Approximately one year ago, Teamsters members sacrificed $75 million in concessions to allow World to emerge from bankruptcy for the first time. Less than nine months after emerging in February 2013, the company again declared bankruptcy in November 2013.
“While the Teamsters remain committed to finding some way forward with the management of World Airways, our members have spoken loud and clear that we cannot make more concessions without assurances that sacrifices will be shared equally among stakeholders and that the sacrifices will be remembered and honored should the company return to profitability,” said Capt. David Bourne, Director of the Teamsters Airline Division. “So far, the company has been unwilling to give us such assurances. Moreover, the company has failed to provide up-to-date information about their business plans, or solid accounting supporting their requests for concessions.”
This round of concessionary negotiations marks the second time Teamsters-represented Pilots and Flight Attendants were asked to cut wages and benefits. No further negotiations are scheduled at this time.
Lawsuit Filed Against Allegiant Air to be heard in Nevada
In response to a motion filed in the U.S. District Court for the Southern District of Florida by the Airline Division of the Teamsters and Local 1224 requested a hearing and Motion for Preliminary Injunction against Allegiant Air Travel, a change of venue was granted this week and the case will now be heard in Nevada. The motion seeks redress against Allegiant Air for violation of the “Status Quo” provisions of the Railway Labor Act.
More information will be forthcoming when dates are announced.
Kalitta Air Mediation Begins
Federal Mediator Jack Kane joined management and the negotiators and legal advisors from Local 1224 in Fort Lauderdale, Florida, as the parties began mediation over the Kalitta Air collective bargaining agreement. Additional dates will be announced as soon as the parties agree on them.
Airline Industry News
Governmental and Regulatory
While primarily weather-driven, new regulations on pilot hours from the Federal Aviation Administration may have contributed to some cancellations during the extreme winter weather events dubbed the "polar vortex," airlines said.
In a January 6th Airworthiness Directive, the FAA is giving Airbus A320-family operators as little as 48 months to weigh elevators or check maintenance records to ensure routine work—including painting—has not added too much weight to the structures. The U.S. agency, following a European Aviation Safety Agency (EASA) mandate issued in October 2012.
The Federal Communications Commission has received hundreds of comments over a plan to lift a ban on in-flight use of cell phones. The majority of comments oppose cell phones on planes, although some people say the airlines should decide the matter.
Airlines, Industry and Labor
Members of the US Airline Pilots Association voted to keep their top leaders after a recall election failed to oust the president and vice president. The executive committee of the union, which represents pilots at the former US Airways, authorized a recall election last month.
Boeing machinists voted to approve an eight-year contract that will keep 777X production in Washington. "Thanks to this vote by our employees, the future of Boeing in the Puget Sound region has never looked brighter," said Raymond Conner, CEO of Boeing Commercial Airplanes, in a statement.
The DC-9 flew into retirement on Monday evening. Delta Air Lines held the final flight for its last DC-9, the oldest aircraft in the fleets of U.S. airlines. The first DC-9 was built in 1965, and it does not have a computer system. "It's a pilot's airplane," said pilot Scott Woolfrey, who flew the last flight from Minnesota to Atlanta.
Airlines are predicted to transport 3.3 billion passengers in 2014, according to the International Air Transport Association. "We are approaching a point where this industry will move half the world’s population from one place to another over the course of a year," IATA director general Tony Tyler said.
Airlines for America, the trade organization for the major U.S. carriers, continues its push for a national airline policy to ensure U.S. carriers remain globally competitive, which includes reform to the airline industry's heavy tax and regulatory burden.