Airline Division News Items
Teamsters Visit Senator Jay Rockefeller on Aviation Issues
On Tuesday March 24, General President James Hoffa, Ken Hall, Director, Parcel and Small Package Division, and Capt. David Bourne, Airline Division Director, paid a visit to Sen. Rockefeller (D-WV) Chairman of the Senate Committee on Commerce, Science, and Transportation to discuss important aviation issues. One issue was the Express Carrier language in the FAA bill that passed the House. This language would make it easier for unions like the International Brotherhood of Teamsters to organize FedEx employees. The second major issue was legislation to ensure the same level of safety regulation for airline maintenance in foreign repair stations as exists domestically and a moratorium on foreign outsourcing pending the issuance of new regulations.
Fourteen Meetings Held with Aids to Senators and Congressmen
On Thursday March 26, a series of meeting were held throughout the day with legislative assistants to a number of Senators and Congressmen to seek support for Teamster aviation issues. Teamster representatives including mechanics were seeking cosponsors for the outsourcing bill Congressman Filner has agreed to sponsor. (The full language of the bill is attached.) The Express Carrier language in the House version of the FAA reauthorization bill was also promoted at the meetings.
Teamsters Seek Release to Strike Amerijet
David Bourne has asked the National Mediation Board to release the Airline Division from mediation with Amerijet International, Inc. and to push for binding arbitration in an effort to reach a collective bargaining agreement. If the NMB releases the parties from binding arbitration, and if either of the parties refuses to accept binding arbitration, then unless President Obama intervenes, they will be free to engage in self help at the conclusion of a 30 day cooling off period. Typically self help includes strikes and lockouts. The Teamsters have been attempting to reach an agreement for almost five years and stated that the parties are at an impasse after Amerijet announced that it was unilaterally cutting employee wages by 10 percent and eliminating 401(K) matches.
Airline Division Takes Over Control of CapeAir Negotiations
David Bourne sent a letter to the crewmembers of CapeAir informing them that the responsibility for their contract negotiations was being moved from Local 747 directly to the Airline Division in Washington.
He said the Division has already begun working directly with Cape Airpilots' officers and negotiating committee to insure they get the best possible representation to secure a solid contract. Staff have been dispatched from the International in Washington, DC to meet with the pilots in Hyannis, Massachusettsand will go to San Juan and St. Thomasnext week.
World Airways Have Started Section 6 Negotiations
World Airways had its first negotiation session on a new contract last week. International Representative Scott Hegland, and IBT attorney Nick Manicone are assisting in the negotiations. The second session is scheduled for the week of April 13.
The Professional Air Traffic Controllers Organization (PATCO) Sign on New Locations
PATCO, which has an alliance with the International Brotherhood of Teamsters, has signed on controllers from Tyler, Texas. Other recent PATCO groups include Donaldson, S. C., Opa Locka, FL, and Pompano, FL.
Week in Review News Items
Labor Developments
FedEx could cancel contracts for $6.7 billion in American-made planes if Congress makes it easier for unions to organize the delivery giant's workers. The Memphis-based delivery company disclosed that future commitments to buy Boeing 777s are contingent on FedEx Express' continued coverage by the Railway Labor Act. Southwest Airlines has signed a tentative contract with its flight attendants that will boost pay and benefits, the third major union deal the airline has reached in recent months. The flight attendants union at Northwest Airlines plans to file for an election this summer to seek representation of flight attendants at Delta Air Lines as the two carriers merge. And when it comes to corporate greed, union leaders at American Airlines say "AMR" sounds a lot like "AIG." Labor officials are criticizing executives with American Airlines parent AMR Corp., comparing a slate of upcoming executive bonuses to payouts distributed by the bailed-out insurance giant American International Group.
Safety & Regulations
A FedEx Express cargo plane burst into flames as it landed Monday morning at NaritaInternational Airport outside Tokyo; the pilot and co-pilot were killed. FAA will begin an extensive audit, called an Air Carrier Evaluation Process, at American Airlines on April 1. The review stems from last year's inspection lapses at American, Southwest and other airlines. Separately, American and its pilots union agreed Thursday to re-establish an air-safety program that regulators consider critical for preventing accidents. The federal inquiry into February's deadly Buffalo commuter plane crash is looking closely at pilot performance, with investigators delving more deeply into the training and oversight provided by Manassas-based Colgan Air.
International Developments
US and overseas airlines asked the Obama administration to oppose an effort in Congress they said would threaten the global aviation alliances that allow relief from antitrust law to coordinate schedules and fares, particularly on transatlantic routes. US President Barack Obama's administration has not formed a position on the inclusion of US airlines in the EU's emissions trading scheme, State Dept. Deputy Assistant Secretary for Transportation Affairs John Byerly said this week. It is just under a year ago that the Open Skies agreement between the US and the EU came into force. Much was expected of this deal, including lower fares, a wider choice for passengers at Heathrow and grand economic benefits
Airline Demand: The Bad News
Losses for the world's airline industry, grappling with its deepest crisis in 60 years, will total nearly $5 billion this year as the economic slowdown continues to shrink passenger and freight traffic, the International Air Transport Association said Tuesday. Yield growth among the US carriers peaked around August/September last year, but dropped off sharply after the summer peak. Domestic yields started to fall year-on-year in Nov-2008, while Atlantic and Pacific yield growth entered negative territory the following month. Atlantic yields turned deeply negative last month, plunging 10.7% year-on-year, following a 7.5% reduction in Jan-2009. Pacific yields fell 2.9% last month, following a 1.4% reduction in Jan-2009 and are expected to continue to ease as more capacity enters key markets to China and Australia in coming months.
Airline Demand: The Good News
Despite all the grim economic news, the American airline industry remains cautiously optimistic it will make it through 2009 without a bailout or major bankruptcies. A few carriers may even make a profit, if only a small one. The reason: Most major airlines have been in economic-crisis mode almost nonstop since 9/11, which has forced them to become leaner, more efficient operations and thus, more resilient during this downturn. US Airways expects to generate $400-$500 million this year in ancillary revenue, according to President Scott Kirby. Frontier Airlines Holdings, which is operating under bankruptcy protection, posted a $3.2 million net loss and a $1.5 million operating profit in February, numbers it said bode well for its effort to secure financing to exit Chapter 11. And significantly, Continental Airlines' Larry Kellner says he grudgingly approved first-bag fees and thinks airline re-regulation should be considered.