Airline Division Week In Review for September 30, 2012

Era Ends as Comair Ceases Operations

Faced with the realities of fleet reductions imposed by Delta Airlines as a consequence of their recently amended contract with Delta pilots, Comair Airlines flew their last flight on Saturday.
For years a recognized leader in the commuter industry, later referred to as “regional airlines,” Comair began service with twin engined piston aircraft, later transitioning to turboprops and finally becoming the first operator of jets in the regional industry.

Since the announcement of the impending shutdown; Teamsters Local Union 513, who represents Comair’s flight attendants, has been working to secure severance and other benefits as well as financial and job training assistance for the flight attendants.

Commenting on the shutdown, Local 513 President Elaine Morris said, “We would like to thank the Teamsters for getting industry leading pay and benefits for the Comair Flight Attendant group for the last 10 years. We signed our first contract on July 19, 2002 and the Teamsters have always been there for us, especially during this painful time. It has been a great journey.”

UAL Negotiating Committee Update 

Assisted by the generosity of Local 455, its Principal Officer Steve Vairma, Business Agent John Hennelly and the Local committee; the negotiating committee met for over a two week period beginning on September 20^th and 21^st in Denver, Colorado. The committee spent the two days reviewing and prioritizing each of the articles and proposals suggested by the steering committee.

The committee reconvened September 26^th through the 28^th in Denver and spent the scheduled meeting time going through the three contracts of CO, UA and MCI to look for and identify any and all differences to each of the contracts in an effort to combine them into one.

The fourteen member committee was broken down into seven sub committees, with each committee was assigned a BA to assist with the review and help resolve questions the sub committees identified. Where differences were identified, recommendations were developed and reported to the entire committee. These recommendations will be reviewed when the committee meets in Chicago starting on October 10^th.
The protocol agreement is not yet been completed. A key to that process; the outstanding issues delaying the completion of the protocol agreement; is defining the number of open issues. Once that is done it is expected the protocol will be finalized quickly. The committee is also awaiting dates for official training regarding the NMB expedited bargaining procedures. Dates have been suggested to complete the training and the membership will be notified when the schedule is confirmed.

ExpressJet Discussion continue in Baltimore

Negotiations for ExpressJet this past week brought a tentative agreement on Section 12 - (Field Trips), and continued discussions and exchange of proposals on Section 3 – (Classifications).  While the parties are now closer to agreement on this section of the agreement, fundamental differences remain that must be resolved.
Negotiations are scheduled to resume on October 15^th in Baltimore.

Airline Industry News

Governmental and Regulatory

The failure of a GE engine on a Boeing 747 in China is not related to a similar failure in the U.S. according to the DOT. 

Industry and Labor
Southern Air, an ACMI cargo carrier operating Boeing 747-400’s and Boeing 777’s, has filed for bankruptcy protection…United Parcel Services' proposed deal to acquire TNT, a Dutch package delivery company, may face more opposition as European antitrust regulators consider stepping in.

Ground workers for American Airlines are the latest group to accept the airlines early out program…US Airways flight attendants have rejected a preliminary five-year contract, the airline says.

AMR, parent company of American Airlines, has filed a financial report with bankruptcy court stating a financial loss of $82 million in August…Cargo airlines, including FedEx and United Parcel Services, are facing drops in revenue this year, due to decreased average package weights and softer demand.

American Airlines has informed its pilots union, the Allied Pilots Association, that it will seek a court injunction against the union if its pilots continue to do what the airline calls interfering with operations.