October 6, 2012 Newsletter

Southern Air, Pilots Reach Agreement

Negotiators for the pilots of Southern Air, an ACMI cargo operator whose pilots are represented by Local 1224 of the Airline Division, and management have reached a tentative agreement on a contract as the carrier moves through the bankruptcy process.

The agreement provided work rule improvements, a twelve month early opener, a pay raise at the end of the agreement, and most importantly, no concessions whatsoever. Additionally, with the contract having been negotiated internally by Local 1224 representatives and the negotiating committee, with assistance from Airline Division staff and management, substantial cost savings were realized by the ExCo and Local.

“I applaud the Southern ExCo and Local 1224 on their dedication and focus on protecting their members,” said Airline Division Director Captain David Bourne. “Negotiating in bankruptcy is never easy, however they remained focused on protecting their members and their agreement, while securing provisions and options that will benefit them in the future as the airline emerges from bankruptcy,” he went on to say.

Airline Industry News

Governmental and Regulatory

The U.S. Court of Appeals in New Orleans dismissed American Airlines' lawsuit against the National Mediation Board, citing a lack of jurisdiction over the NMB.

Airline and Industry

Southwest Airlines has reported a 2.1% drop in revenue passenger miles for September over the same month last year.

American Eagle has reached tentative labor agreements with the union representing its mechanics and related workers, and ground-school instructors.

Boeing doubled delivery of 787s in the third quarter, providing 12 aircraft, compared with six in Q2. The company has delivered 26 units of the model, after producing more than 70.

General Electric has added to its safety inspection directive ordered earlier this week by having airlines check the installation of a specific turbine nozzle in addition to checking the turbine itself.

As air traffic is poised to grow 5% annually in the next 20 years, Boeing is hoping to better compete with Airbus for plane orders.

Delta Air Lines and Korean Air are in talks to revamp their decade-old joint marketing alliance into something stronger.

Alaska Air Group reported Wednesday that its Alaska Airlines saw a 5.1% increase in traffic in September.

Delta Air Lines is reporting that its fuel costs have declined due to its new refinery.

American Airlines' parent company, AMR, said Tuesday that it would resume contract negotiations with its pilots this week, and a key factor of that discussion may be the final pilots' vote regarding a union strike.