UAL/CAL “On Track” for Single Certificate, will operate with separate CBA’s
In a quarterly conference call held this week, UAL CEO Jeff Smisek addressed the issues surrounding the continuing integration process of United and Continental Airlines. Commenting on the desire to have achieved combined working agreements for the unionized groups at both airlines; Smisek stated that his goal of achieving the combined agreements by the end of this year was an aggressive goal but he believes now is unachievable for a number of reasons.
During the question and answer portion of the call he commented that “the discussions with our various work groups have nothing to do with a single operating certificate….and we are on track to achieving a single operating certificate by the end of this year.” Once the FAA issues the single operating certificate, United Air Lines, Inc. and Continental Airlines Inc. will operate as one carrier, not two separate carriers, but they will have to honor the terms of the two separate mechanics/technicians collective bargaining agreements until the two contracts are amalgamated.
Week In Review Industry News
About 4,000 FAA employees are now furloughed without pay, according to the FAA, as the Senate on Friday failed to approve a controversial House-passed extension of taxes that help fund the FAA…Germany-based forwarding and logistics giant DB Schenker said it would ground its domestic US overnight air operation — the BAX Network over the next several weeks…Unions representing American Airlines workers cheered the company’s vision for upgrading its aircraft fleet and called on the company’s management to make a similar investment in its employees.
As long as they each sell of a small number of landing rights at each airport, the DOT will allow USAirways and Delta to swap slots at Washington National and LaGuardia airports…Despite higher fuel costs, USAirways posted a $92 million dollar profit for the second quarter…Republic Holdings CEO Brian Bedford told the Denver Business Journal that, "We're going to finish the restructuring effort and then we're going to focus on running the business."