Airline Division Week in Review — June 9, 2018

Atlas Air, Southern Air and ABX Crew Members to Picket White House 
Atlas Air, Southern Air and ABX pilots; members of APA Local 1224 who are flying for Amazon, DHL and other customers will picket the White House to bring maximum visibility to the fight for a new CBA. Picketing will take place on Monday, June 11th.  

AGENDA – Monday, June 11, 2018
Below is a preliminary schedule of events for the day of picketing:

• 9:00 a.m. — Bus departs from the Hampton Inn & Suites Washington-Dulles International Airport, 22700 Holiday Park Drive, Sterling, Virginia 20166
• 10:00 a.m. – 2:00 p.m. — Picketing on Lafayette Square in front of the White House, Lafayette Square (Pennsylvania Ave NW & 16th Street Northwest), Washington, D.C.
• 2:00 p.m. — Bus departs picket location / returns members to the Washington-Dulles International Airport and the hotel.

Airline Industry News

Governmental and Regulatory
Forwarders take to dedicated freighter ops, but could trade issues get in the way? 

Airlines, Industry and Labor
Natilus, the cargo drone startup, has completed the latest phase of taxi tests on water for a 30-foot-long prototype of its planned, large-scale unmanned cargo aircraft.

Swiss-based carrier Panalpina added Querétaro International Airport (QRO) to its United States-Mexico network, which it calls the “speedy loop,” connecting Mexico City and Guadalajara with the airline’s airfreight gateway in Huntsville, Alabama.

Tariffs may bring a premature end to the cargo boom.

Airline Division Week in Review — May 30, 2018

Airline Division and Allegiant Air Dispatchers Reach a 5 Year Agreement with Airline

The International Brotherhood of Teamsters Airline Division and Teamsters Local 986 have reached a tentative agreement with Allegiant Air on a five-year contract for approximately 34 flight dispatchers at the company.

“Congratulations to everyone who worked to reach an agreement that is amenable to both the company and its flight dispatchers,” said Capt. David Bourne, Teamsters Airline Division Director. “This is a very important agreement that we believe will assist the company in its quest to become an industry powerhouse.”

The tentative agreement comes shortly after an election in which the company’s mechanics voted to join the Teamsters. A contract ratification vote for the flight dispatchers is anticipated before the end of July.

“This contract includes significant improvements in job security, benefits and compensation,” said Chris Griswold, Local 986 Secretary-Treasurer. “I’m pleased that we were able to work with the company and our membership to reach a contract that reflects the dedication and professionalism embodied by the flight dispatchers at Allegiant Air.”

Teamster Pilots at Flexjet Speak Up

Teamsters Local 1108 Business Agent and Flexjet pilot Laddie Hostalek speaks up in support of Flexjet pilots in an interview with Kevin Mitchell, Chairman of the Business Travel Coalition.

Topics include management’s decertification strategy, collective bargaining in a tight labor market, the role of third-party anti-union fringe groups, a Flexjet manager’s comparison of pilot unionism to cancer, and more.

Click here to listen to the interview.

Airline Industry News

Governmental and Regulatory

Members of the US House Committee on Appropriations have attached a host of amendments to the FY 2019 Transportation, Housing and Urban Development Funding Bill, before sending it to the full House for an expected vote in upcoming weeks.

Senate Aerospace Caucus co-chairs Mark Warner (D–Virginia) and Jerry Moran (R–Kansas) on May 24introduced a bipartisan bill to advance research and development in the aeronautics industry.

Airlines, Industry and Labor

UPS has opened a package sorting and delivery facility at London Gateway Logistics Park. The facility will be able to sort 28,000 packages per hour and can be expanded.

JetSuite, a private charter service backed by JetBlue Airways, will order up to 100 hybrid-to-electric planes from start-up manufacturer Zunum Aero, which also counts JetBlue as an investor. "The aim is to improve the experience of flights under 1,000 miles, with shorter trips through the airport and cheaper-to-operate flights," said Bonny Simi, president of JetBlue Technology Ventures.

UPS has launched full container load service between Hong Kong and Duisburg, Germany. "By launching this new rail freight connection, UPS is committed to helping our customers in both Europe and Hong Kong grow their businesses and reach new markets." said UPS Europe executive Mike Harrell.

Atlas Air has announced the addition of Jane Lute and Sheila Stamps to its board of directors. "Ms. Lute's in-depth knowledge of cybersecurity and information technology and Ms. Stamp's diversity of strategic and financial experience make them welcome and highly qualified additions to our board of directors," said Robert Agnew, Atlas Air Worldwide's board chairman.

The fallout from last year’s air freight capacity crunch is still playing out, with shippers and forwarders on the hunt for charter flights and alternative shipping strategies.

Mexican civil aviation authorities are conducting a special inspection of the charter operator at the center of the May 18 accident in Havana, and have suspended the company's operation until further notice—the third such action in eight years against the carrier.

Pre-tax earnings for US airlines fell 27% —down approximately $700 million year-over-year—in the first quarter of 2018, as fuel, labor, airport and aircraft expenses outpaced revenues, according to an industry overview by Airlines for America (A4A) released May 23.

This year as we again enjoy the start of the summer season with family gatherings, cookouts and events and never ending commercial appeals; we ask that you join us and remember that this weekend is not for the joys these may bring. Memorial Day is our day…indeed our responsibility to recall and remember those who gave their lives in battles on distant shores to defend our nation. Many lie in marked graves and many lie in unknown fields. 

Please join us as we take a moment to remember those men and women who gave so much for us. For those who may have been family; speak their names aloud so they will never be forgotten. 

In remembrance of the fallen, the offices of the Airline Division will be CLOSED on Monday, May 28th. We will reopen for regular business on Tuesday, May 29th.

Airline Division Week in Review — April 27, 2018

Teamster Pilots File For Mediation at Flexjet, Flight Options

On Wednesday, the International Brotherhood of Teamsters Airline Division filed for mediation with the National Mediation Board (NMB) following six months of negotiations with management over a new collective bargaining agreement for Flexjet and Flight Options pilots.

Flexjet and Flight Options are luxury business jet carriers that serve wealthy individuals and large corporations and operate under the umbrella of aviation parent company One Sky Flight, LLC.

The combined Flexjet and Flight Options pilot groups are working under a single labor contract that was awarded by an arbitrator on October 10, 2017 to address the merger of the two carriers. The parties are currently negotiating over changes to that interim contract. The union is seeking pay increases, benefit improvements and more favorable work rules for pilots.

"In order for Flexjet and Flight Options to retain and recruit high-quality pilots in a tight labor market, we need a collective bargaining agreement that recognizes and rewards the hard work and dedication of our flight crews," said Capt. Efrem Vojta, President of Teamsters Local 1108. "We filed for mediation because we believe the involvement of the National Mediation Board will help us reach an agreement that works for the benefit of pilots, the carrier and customers."

In March, union negotiators proposed a framework for reaching a new labor agreement within nine months. That proposal included non-adversarial bargaining and a joint effort to identify industry-leading pay, benefits and scheduling provisions at other carriers for possible inclusion in a new contract. Management rejected the union's proposal. Hiding behind constant propaganda blaming the IBT for lack of progress, management has sponsored a decertification campaign among anti-union Flexjet pilots who have applied to the National Mediation Board (“NMB”) for a representational election.

"The Airline Division and Local 1108 want to secure a strong contract for our members to vote on without any delays or distractions," said Capt. David Bourne, Director of the Teamsters Airline Division. "By filing for mediation, we are once again demonstrating our commitment to the One Sky pilots—many of whom have other employment options due to the pilot shortage—as well as to the success of the carrier, which needs an industry-leading labor agreement in order to attract the pilots it will take to dominate the unique market it serves."

Airline Division Joins Other Unions and Groups to Blast Drone Cargo Aircraft Study

The International Brotherhood of Teamsters Airline Division joined with the cargo pilots of Air Line Pilots Association, Int’l, the Independent Pilots Association to vehemently oppose a proposal to begin studies that could lead to single pilot drone operated cargo aircraft in the skies over America.

The groups issued the following statement concerning the FAA Reauthorization Act of 2018 (H.R. 4) introduced in the U.S. House of Representatives on Friday:

“While we applaud Members of Congress on their efforts regarding the release of the FAA Reauthorization Act of 2018, we are deeply concerned with the language contained in Section 744 - a provision that would introduce significant aviation safety and security risks for cargo aircraft. Specifically, this provision establishes a research and development program in support of single-piloted cargo aircraft assisted with remote piloting and computer piloting.

“The professional cargo pilots of our collective airlines strongly oppose Section 744 and implore Congress to reject this provision without delay. By endorsing language that promotes single-operator commercial cargo aircraft, Congress will undermine years of safety and security measures currently in place and put lives at risk.

“The desire by some in the industry to pursue single-piloted or autonomously piloted cargo aircraft seriously places the American public and the flight crews of these aircraft in a tenuous position. For many years, aviation has been the safest form of transportation in the United States. This is by no means an accident; it is the result of a strong regulatory framework built over time, paired with an ongoing airline system safety culture that is one of the most ambitious in our nation’s history. Attempts to roll back safety regulations in such a way are counterproductive, and unacceptable to the common good. With the increasing frequency and severity of reports regarding computer hacking, accidents in current military and civilian drone operations, and mounting reports of autonomous vehicle accidents, we think any serious consideration of this technology is premature at best.”

ABX Crew Members to Picket ATSG Shareholder Meeting

Pilots of ABX, owned by ATSG will conduct informational picketing Thursday, May 10, outside of the ATSG Shareholder meeting in Cincinnati, Ohio. In a show of unity and resolve to achieve a fair contract, they will be joined by fellow member pilots of Local 1224.  The evening prior to the picketing event, they will also be hosting a crew gathering at the Holiday Inn CVG.  All pilots are welcome to join them for the crew gathering, even if they are unable to join the show of solidarity on the picket line.

If you plan to attend, please RSVP as soon as possible to give them an estimate of participation.  Maximum turnout is encouraged.  Click the following link to confirm your participation:  https://www.surveymonkey.com/r/DVBYMJ8

Action Alert: Write Congress to Oppose Section 744 of HR 4

Teamsters Local 1224 is an active member in the Coalition of Airline Pilots Associations (CAPA), a trade organization which addresses safety, security, legislative and regulatory issues affecting the aviation industry. CAPA represents more than 30,000 pilots from Teamsters Local 1224 & 357, American Airlines and UPS. 

The Coalition of Airline Pilots Associations (CAPA) is calling on Congress to oppose Section 744 of the FAA Reauthorization Bill (H.R. 4).  

Congress is now debating legislation to renew funding for the Federal Aviation Administration. The recent version of the FAA reauthorization bill (H.R. 4) currently in the House of Representatives includes language (Section 744) that is deeply concerning; it will undermine safety for our fellow pilots and the traveling public. 

Section 744 directs a study by NASA on "single-piloted commercial cargo aircraft."  This provision will impact the safety for our national airspace system, and undo decades of effort by Congress and regulators to enhance commercial airline safety. 

Technology has its place on the flight deck, however, it will never fully replace a coordinated crew that rely on human skill drawing upon years of experience flying aircraft in all types of weather over vastly different topography.  As demonstrated during last week's event involving Southwest Airlines flight 1380, and the subsequent emergency landing in Philadelphia, "the most important safety equipment onboard any commercial passenger or cargo aircraft is a well-trained, experienced professional aircrew.” 

Attempting to omit a member of the flight crew could have potentially led to a vastly different outcome.  Moreover, this legislation is an attempt by industry to undermine our profession and relegate our skills as professional airmen/airwomen as antiquated and unnecessary. 

Nothing about the current state of this technology or our experiences with remotely-piloted aircraft, indicates a mature system that is ready for introduction into our national airspace system, or widely embraced by the American public. 

Write Congress Today! 

Your participation in this letter writing campaign is extremely important.

Ask Congress to oppose this language - a single-pilot in the cockpit is not safe commercial airline operations - and vote against Sec. 744 in H.R. 4

CLICK HERE to take action or copy/paste the following URL into your web browser: http://cqrcengage.com/capapilots/app/onestep-write-a-letter?8&engagementId=466793

Airline Division Attends STEM

International Representative Chris Moore and Deputy Division Director Allynn Allen manning the Airline Division Booth at STEM

On April 6th, Airline Division Deputy Director Allynn Allen, International Representatives Chris Moore, and Bob Fisher, along with Joyce Fisher, manned a booth at Washington D.C. STEM (Science, Technology, Engineering and Math) Festival.

The largest festival of its kind in the U.S.; DC STEM featured over 3,000 hands-on exhibits from the world's leading scientific and engineering societies, universities, government agencies, high-tech corporations and STEM organizations.

On Saturday and Sunday, a representative from United Airlines Talent Recruitment Office  joined with the Airline Division in this effort to educate students on future roles in aviation.

The Festival was held in the Washington D.C. Convention Center with the expected attendance of over 350,000 students. The Airline Division booth attracted much attention with students having an opportunity to fly a drone simulation and talk about the various aircraft parts displayed, courtesy of the UAL Dulles Tech Ops department, who graciously loaned the items to the Airline Division for the festival.

Airline Division attends Aviation Week MRO Conference

Once again this year, the Airline Division attended and participated in the Aviation Week MRO (Maintenance, Repair and Overhaul) conference in Orlando, Florida. Designed to highlight the MRO industry; the Airline Division was represented by National Coordinator for Technicians and Related, Vincent (Vinnie) Graziano and Division Director David Bourne.

A building theme at these annual events is the looming technician shortage. North America is forecast to have a shortage of over 9000 mechanics by 2022. MRO’s are concerned with the wage rates paid as yield is continuing to be squeezed. Look for further consolidation in the MRO industry as wage rates increase, with the possibility of several of these companies going out of business. The trend continues to be work is being repatriated to the United States as the economics of overseas outsourcing becomes less advantageous to the airlines. All of these factors make for a favorable environment for negotiating technician contracts for the foreseeable future.

Airline Division attends Aviation Week MRO Conference

The winning team at this years MRO Competition, from UAL (CLE)

Once again this year, the Airline Division attended and participated in the Aviation Week MRO (Maintenance, Repair and Overhaul) conference in Orlando, Florida. Designed to highlight the MRO industry; the Airline Division was represented by National Coordinator for Technicians and Related, Vincent (Vinnie) Graziano and Division Director David Bourne.

A building theme at these annual events is the looming technician shortage. North America is forecast to have a shortage of over 9000 mechanics by 2022. MRO’s are concerned with the wage rates paid as yield is continuing to be squeezed. Look for further consolidation in the MRO industry as wage rates increase, with the possibility of several of these companies going out of business. The trend continues to be work is being repatriated to the United States as the economics of overseas outsourcing becomes less advantageous to the airlines. All of these factors make for a favorable environment for negotiating technician contracts for the foreseeable future.

Airline Division and TAMC Sponsor Skills Competition at MRO Conference

The Airline Division and TAMC were sponsors of the Aerospace Maintenance Skills Competition again this year at the MRO Conference.  With a much larger presence than last year, the Teamsters visibility and reputation for excellence continue to grow throughout the industry. Sixty six teams from around the world and from all sectors of the industry competing in 28 events. There were six teams comprised of Teamster represented mechanics from UPS, Horizon, UAL (HOU), UAL (MCO), UAL (CLE) and in a first; a Teamster represented all female team called “Chix-Fix,” made up of UAL female mechanics from around the system. 

The UAL Team (CLE) won the William F. (Bill) O’Brien Award for Aviation Maintenance Excellence Award as winner of the overall competition for the second year in a row.

The Airline Division and TAMC raffled a set of tools that brought many students and military mechanics to our table which allowed us to have great conversations about the Teamsters Airline Division and the TAMC.

Our Facebook page presence also continues to gain attention. The number of followers has more than doubled since last summer. For more information on the TAMC, go to: http://teamsterair.org/tamc or on Facebook: https://www.facebook.com/theaviationmechanicscoalition/

International Representative Chris Moore presents a set of Snap-on tools to the winner of the student raffle at the MRO Convention

UAL “Chix Fix” Team Highlights Skills and Opportunities for Women in Maintenance

This year, the MRO Maintenance competition also highlighted three all female maintenance teams, including one comprised of UAL female mechanics.

The Chix-Fix team is composed of:

DEN Line Technician Janelle Bendt, O’Hare International Airport (ORD), Aircraft Inspector Polly Delaney, (DEN), Aircraft Maintenance Supervisor and Team Coach Dana Eads, Los Angeles International Airport (LAX) Avionics Line, Technician Joanne Mulherin, SFO San Francisco International Airport (SFO) Base, Technician Katrina Oyer, Orlando International Airport (MCO) Aircraft Maintenance, Supervisor and Team Coach Laura Spolar, (SFO), Aircraft Interior Repair Technician Natalie Vo and LAX Line Technician Zoe Wainwright.

UAL "Chix Fix," one of the three all female teams competing at the MRO Competition

Born from an idea at the Women in Aviation International, the team was led by Bonnie Turner, who is the SFO Airframe Repair and Overhaul Managing Director and coached by MCO Supervisor Laura Spolar and DEN Senior Supervisor Dana Eads.

Commenting on the team, Sister Spolar said, “One of the best reasons to field a team of women is to encourage more women to join us in this field. Someday we hope to have enough women technicians in every hub to field an all-local all-women’s team.”

“It’s been a little different for our team, since we don’t always work in the same station,” said LAX Avionics Line Technician Joanne Mulherin about the Chix Fix team. “The guys, on the other hand, are always in the same place. That’s OK with us, though; it just means we have to work harder, and we have been.”

Airline Industry News
Governmental and Regulatory

Volga-Dnepr is to cease providing AN-124 capacity for EU and NATO states under the Strategic Airlift Interim Solution (Salis) contract it shares with Antonov Airlines.

US House Transportation Committee chairman Bill Shuster (R-Pennsylvania) has submitted an amendment to proposed FAA reauthorization legislation that would require a “call to action” review of airline engine safety in the wake of the Southwest Airlines flight 1380 engine failure. The amendment to HR 4, the FAA Reauthorization Act of 2018, calls on FAA to initiate the review process within 90 days of the bill’s enactment.

The FAA and European Aviation Safety Agency (EASA) late April 20 issued emergency airworthiness directives (AD) calling for inspections of fan blades on CFM56-7B engines that power Boeing 737NGs.

Airlines, Industry and Labor

(L to R) International Representative Paul Alves, USMC Veteran and Avionics Technician Joanne Mulherin (SFO-31 years) , Division Director David Bourne, Dana Eads (DEN MX Supervisor and Team Coach) and Deputy Division Director Allynn Allen at the MRO Competition.

Fort Lauderdale-based regional carrier Silver Airways finalized its purchase of San Juan, Puerto Rico-based Seaborne Airlines April 23, creating a combined fleet of 31 aircraft serving Florida, the Bahamas, and the Caribbean. Financial details of the transaction were not released.

International profits are up for UPS however, domestic profits are in a slump.

Michael L. Ducker, president and CEO of FedEx Freight since 2014, will retire on Aug. 15. Ducker joined FedEx Express in 1975, rising through the ranks and taking on the role of chief operating officer of FedEx Express in 2009.

The American Airlines Cadet Academy will train prospective pilots  for 18 months at the carrier's partner flight schools, removing financial roadblocks to encourage more to become professional aviators. Once training is complete, students can interview for a position with the airline's regional carriers Envoy, Piedmont and PSA.

FedEx will give its pilots  a hybrid system of smart glasses and oxygen masks called Smoke Assured Vision Enhanced Display, or SAVED. The system is designed to help with emergency landings by providing pilots with data from the aircraft's instrument panel and external cameras.

Airline Division Week in Review — March 30, 2018

Omni Pilots Ratify New Contract By Large Margin, High Turnout
Today over 95% of Omni International’s pilots voted by an overwhelming margin to ratify their new contract. With 190 of the 198 eligible members voting, 177 members voted in favor of the new agreement.
“I am very happy for the Omni pilots,” said Airline Division Director Captain David Bourne. “This new agreement represents a substantial improvement for the Omni pilots in wages, working conditions and quality of life. I commend their leadership and the leadership of Local 1224 for bringing this outstanding agreement to the membership and for its ratification.”

Approximately 150 Aircraft Workers at SeaTac Airport Vote to Join Teamsters Local 174
Nearly 150 aircraft fuelers, dispatchers and mechanics employed by Swissport have finally received word that they were successful in their effort to join Teamsters Local 174. The mostly-immigrant workgroup is based at SeaTac airport, and is responsible for fueling all commercial aircraft departing from that airport.
“These individuals perform technically difficult work that has a direct impact on public safety, yet Swissport pays them minimum wage without benefits. Turnover is sky-high as a result,” said Local 174 Secretary-Treasurer Rick Hicks. “For the work they do, these people deserve far better treatment. The customers of Alaska Airlines and all the flying public deserves better. We are proud to see them standing together to tell their employer that they will not be taken advantage of anymore.” 
The fuelers will join their 13 fellow Swissport employees working at the SeaTac fuel farm as members of Teamsters Local 174.
The election victory comes after a difficult organizing campaign spearheaded by Local 174 Director of Organizing Meaza Ogbe.
“We faced numerous challenges, especially language and cultural barriers, but those were ultimately overcome by speaking a language we can all understand: the language of respect,” said Ogbe. “I am so proud of the courage these workers demonstrated in standing up to their employer and not falling prey to their manipulations. They are now in a great position to improve their wages, hours and working conditions, which will improve their entire standard of living.” 
The election results will be certified next week and the union will begin the process of negotiating a first contract by conducting a demands meeting and listening to the employees on what they wish to accomplish. 
“Welcome to our new sisters and brothers to the Teamsters Union, and welcome to a better way of life,” Hicks said. “We are happy to have you in our family.”

Crewmembers Cautioned On The Dangers Of Drinking Some Teas In South America
APA Teamsters Local 1224 Human Factors Coordinator Roy Liggett recently issued a warning to crewmembers operating into South America, regarding the consumption of some commercially available hot teas. In his email, he specifically referenced a tea made from Coca leaves.  He said:
“While this tea is legal and readily available in many of our South American destinations, its consumption (even accidental or unknowing) could have a catastrophic effect on your career.  
While on an overnight in these countries, please be extremely alert to this risk when consuming tea. 
In addition, this exact tea has been seen on our freighters as part of the regular catering.  If you do happen to see this tea, DO NOT consume it, discard it in the trash and immediately file an FCR with included pictures.” 
If you missed the original message, titled “Be Careful What You Eat and Drink”, you can view it by clicking here or copy/paste the following URL into your web browser (https://www.apa1224.org/all_unionnewsresults_mbr.aspx?NewsID=13134).

Butler Watch Company Salutes Russ Leighton As It’s “2017 Pillar of Aviation”
Russ Leighton, Aviation Safety Coordinator for the Teamsters Airline Division is the latest recipient of Butler Watch Company's Pillar of Aviation distinction.  Russ has devoted much of his career to the pursuit of higher safety standards in aviation.  He is focused, committed, and often times selflessly sacrifices personal time in order to complete tasks and responsibilities related to his safety work.
In a press release announcing the award; Corey Butler, President of Butler Watch Company remarked, "We are proud to honor Mr. Leighton with our Pillar of Aviation salute. Russ is driven to develop and expand aviation safety.  He deserves recognition for his commitment to improving procedures and conduct that impact all of us."
A Boeing 767 pilot for ABX and member of Local 1224, Mr. Leighton's influence is felt at numerous airline flight departments through his leadership on several industry Boards. He currently serves as the Director of Safety for the Coalition of Airline Pilots Associations (CAPA) and also serves as the Aviation Safety Coordinator for the International Brotherhood of Teamsters Airline Division. Russ is responsible for training and maintaining Aircraft Accident Go-Teams, which help the NTSB as parties to investigations.  Previously, he worked as an Air Safety Investigator for the NTSB, serving as Investigator-In-Charge on over 50 aircraft accidents.  He serves on FAA Aviation Rulemaking Committees (ARC) on behalf of CAPA, the FAA's Commercial Aviation Safety Team (CAST), and Aviation Safety and Information Sharing Executive Board (ASIAS).  Previously, he served on the Flight/Duty time ARC which defined new regulations for pilot flight time and duty time limits.  The new regulations use fatigue science as a basis for the first time ever and were last updated 50 years ago.
As a memento and gift for Mr. Leighton, Corey Butler presented a Professional Series GMT watch with an inscription that includes Mr. Leighton's name and the words "Pillar of Aviation."

Airline Industry News

Governmental and Regulatory
The Federal Aviation Administration says the number of commercial drones and operators in the US will quadruple over the next four years. FAA data suggest that 300,000 new commercial drone pilots will be needed.
The newly released spending bill for the Federal Aviation Administration includes an authorization extension, giving lawmakers until Oct. 1 to craft a long-term FAA bill.
Airports get a new $1 billion federal grant program, but not a long-sought hike in ticket fees to pay for construction projects, under a broad spending bill released last Wednesday.

Airlines, Industry and Labor
Atlas Air Worldwide has built up its cargo fleet with six secondhand 747-400F aircraft. "We think that was a prudent thing to do, as we think about growing demand over the next couple of years and our ability to service that," Atlas Air CEO William Flynn said.
Brisk hiring by major US airlines has sparked interest among young people  in piloting careers. A pilot shortage has small airlines struggling to find pilots and Boeing predicts that 117,000 new pilots will be needed in the US by 2036.
Cargo shippers are looking to grow their air freight capacity as demand for cargo space, including blocked space agreements, continues to grow. Analysis shows that Atlas Air and ATSG are both benefitting from the boom in air cargo.

Airline Division Week in Review — March 10, 2018

Omni Pilots reach Tentative Agreement with 100% pay gains and highest starting salaries in the airline industry
Pilots at charter airline Omni Air International reached a new tentative agreement with the company on February 28th. The agreement includes major increases in pay that make Omni’s starting first officer salaries the highest in the U.S. airline industry. The pilots are represented by the Airline Professionals Association Teamsters Local 1224 and have been in negotiations with the company for almost two and a half years.
The contract addresses longstanding concerns about compensation; many Omni pilots operating under the agreement will see their pay more than double during its four-year term. The contract also includes major increases in issues related to travel, lodging and benefits, a major victory for pilots at Omni.
The Omni contract marks the latest victory for the union, which represents pilots at ten U.S.-based passenger and cargo airlines.
“Our union is committed to raising the bar for the piloting craft,” said Teamsters Local 1224 President Daniel C. Wells. “With the OMNI agreement — the latest in a string of contract victories after Allegiant and Kalitta — we have made these companies a respectable place for pilots to work. We are proud of forcing this evolution in the industry. The contract with Omni is the latest hard-fought victory for pilots in our union and throughout the trade. We are proud to be raising standards for America’s professional pilots that support decent, stable jobs for our members and their families, and we are proud to help OMNI attract and retain pilots who will keep the airline safe for its passengers.”
Based in Tulsa, Oklahoma, Omni is the nation’s largest all-passenger charter airline. The company operates domestic and international flights for corporations, sports teams, government agencies, and the U.S. armed forces, among others.
“A win for pilots is a win for Omni,” said Eric Wainscott, Omni Pilots Executive Council Chairman. “With precedent-setting pay and benefits for Omni pilots, we can attract and keep our best pilots – ensuring that our passengers arrive safely and comfortably at their destinations.”
Omni pilots are expected to vote on the proposed agreement at the end of March. Additional details of the agreement will first be disclosed to and discussed with the 250 Omni pilots who are based across the country.

Allegiant Mechanics and Related join Pilots and Dispatchers as Teamsters
The mechanics and related classifications at Allegiant Air voted overwhelmingly for the International Brotherhood of Teamsters to become their collective bargaining representatives in an election with the National Mediation Board (NMB). The final vote count comes after a petition for representation was filed on December 13, 2017.
“Congratulations to all of our mechanics who voted to stand united so they can negotiate for better wages, benefits and safety standards under a Teamster contract,” said Capt. David Bourne, Director of the Teamsters Airline Division. “We’re excited to begin the negotiations process at Allegiant Air.”
Allegiant Air employs about 400 mechanics and related technicians, primarily in Las Vegas and in Sanford, Fla., but also in 10 other stations throughout the country. The Teamsters already represent pilots and flight dispatchers employed by Allegiant Air.
Colin Coffman has been working for Allegiant Air at Phoenix-Mesa Gateway Airport for three years. He served on the organizing committee during the campaign to bring mechanics into the Teamsters Union.
“Before I worked at Allegiant, I was a Teamster for 19 years at UPS Air Cargo,” Coffman said. “They were a powerful voice for us. The solidarity was there, and it seemed like it was a family. I think workers here need that solidarity; we need that strength.”

Republic Pilots see substantial improvements in wages and benefits with new contract extension
Republic Airline pilots who are members of Teamsters Local 357 have ratified a contract extension of their 2015 collective bargaining agreement.
The extension includes immediate pay raises retroactive to January 1, 2018. Additional raises over the next 23 months provide for a total wage increase of 14 to 28 percent, dependent upon length of service. In addition to the wage increase, improvements were made to vacation accruals and company retirement contributions.
The agreement was reached well ahead of an October 2018 amendable date. The new amendable date is January 1, 2021.
“We’re pleased to have negotiated an extension that values the service Teamster pilots at Republic provide. Reaching an agreement well ahead of the original amendable date is consistent with the goal of shortened but more frequent negotiating cycles. The union leadership feels that incremental improvements have a more immediate effect, and also have the benefit that the aggregate increase will be larger than a single comprehensive agreement achieved over the same time period. This extension was ratified by 51 percent of those voting, with 85 percent participation. Those numbers suggest that this new approach will have to be proven successful to the membership through continuous improvements in the future,” said Josh LeBlanc, President of Local 357.
Teamsters Local 357, based in Plainfield, Indiana, represents over 2,000 pilots flying for Republic.

Airline Industry News
Governmental and Regulatory
Doug Parker, CEO of American Airlines, expressed disappointment that Congress had failed to provide meaningful reforms to the nation's air traffic control system. "The status quo doesn't work," he said. "If our government wants to hold onto [ATC] and be in charge of this commercial process, we need to make it work."

Airlines, Industry and Labor
United Airlines is considering the Airbus A330-800neo and Boeing New Mid-market Airplane (NMA) among options to replace its fleet of aging Boeing 757s and 767s.
Hawaiian Airlines has ordered 10 Boeing 787-9 "Dreamliner" passenger jets, expected to arrive in 2021. "The Dreamliner combines excellent comfort for our guests with fantastic operational performance, and will allow us to continue modernizing our fleet into the next decade," said Peter Ingram, Hawaiian's president and CEO.
A report from the International Air Transport Association shows that the air cargo market is off to a strong start in 2018, with traffic up 8% year-over-year in January. "We expect demand for air cargo to taper to a more normal 4.5% growth rate for 2018," said Alexandre de Juniac, CEO and director general of IATA.

Airline Division Week in Review — December 24, 2017

Allegiant Mechanics file for Teamster representation
On December 13th, Allegiant Airlines mechanics and related technicians filed a petition for representation by the International Brotherhood of Teamsters with the National Mediation Board (NMB).  

The petition is supported by an overwhelming majority of the eligible workers, more than meeting the 50 percent interest threshold established by the NMB. It is expected to trigger an election to determine the workers’ collective bargaining representative. Under the Railway Labor Act, it will be a secret ballot election.

Allegiant Airlines employs about 350 mechanics and related technicians, primarily in Las Vegas and in Sanford, Florida, but also in 10 other stations throughout the country. The Teamsters already represent pilots and flight dispatchers employed by Allegiant Airlines.  
“We’re expecting the National Mediation Board to set a date for the election sometime in the next two months,” said Capt. David Bourne, Director of the Teamsters Airline Division. “The mechanics at Allegiant Airlines recognize the power that Teamster representation brings to their co-workers as well as mechanics at companies like United Airlines and UPS Air Cargo, and they want in on the action.” 

Teamsters, ExpressJet ERJ Reach Tentative Agreement
The International Brotherhood of Teamsters (IBT) and ExpressJet ERJ have successfully concluded negotiations, resulting in a tentative agreement. The agreement covers approximately 500 mechanics, technicians and tool room attendants that are members of Teamster Locals 19, 210, 781, 783 and 964. 

The IBT negotiating team was comprised of Teamsters Airline Division representatives, representatives from each of the locals and rank and file committee members. It contains significant improvements in wages while maintaining current benefit levels. 
An agreement in principle was reached on December 6. The final contract language agreed upon by the union and ExpressJet ERJ will be put before the membership for a ratification vote beginning on Jan. 4, 2018, and the agreement will become amendable one year after the date of ratification. 

“I am pleased that the ExpressJet ERJ Negotiating Committee was able to reach an agreement with the company that improves standards while also being amenable to all parties involved,” said Captain David Bourne, Director of the Teamsters Airline Division. 

Teamster Mechanics and Related Employees Ratify Agreement with NetJets
NetJets aircraft technicians and related employees ratified a new six-year collective bargaining agreement with the Columbus-based business jet operator. The International Brotherhood of Teamsters, the Teamsters Airline Division and Teamsters Local 284 represent 212 aircraft mechanics, maintenance controllers, stock clerks, aircraft fuelers and aircraft cleaners at the company. 

“After more than six years of negotiations, our members secured a new contract with major improvements, including an immediate 20 percent wage increase, additional pay increases every year of the contract, premium-free health insurance that can’t be cut or reduced, retirement improvements and many other benefits,” said Capt. David Bourne, Teamsters Airline Division Director. “The union and its members stand ready to work with NetJets to help ensure a successful company and the highest standards of air safety now and in the future.” 

More than 94 percent of the members voted on the proposed contract which goes into effect tomorrow. NetJets will pay signing bonuses of up to $30,000 by the end of the month. NetJets workers are also eligible for employer matching contributions if they direct some or all of their bonus into their 401(k) accounts. 

“The new labor agreement was made possible by membership solidarity and the support of unionized NetJets pilots, flight attendants and dispatchers, as well as the hard work and dedication of a long line of Teamsters representatives at every level of our union who pulled out all the stops for these men and women,” said Local 284 President Mark Vandak. “This contract demonstrates what strong unions can accomplish for working people across the United States.” 

The new contract runs through December 2023. NetJets has the right to extend the contract for an additional two years if it provides additional wage increases, hires additional aircraft technicians at its Columbus maintenance facility and satisfies other negotiated requirements. 
OneSky MCBA becomes effective

In a message to OneSky pilots, Executive Council Chairman John Barclay announced that agreement had finally been reached with management on the Merged Collective Bargaining Agreement (“MCBA”). Captain Barclay wrote: 
“We have reached agreement with OneSky management concerning the Merged Collective Bargaining Agreement (“MCBA”). Letters of Agreement between your Union and the Company make the MCBA effective October 10, 2017. Flexjet and Flight Options pilots now have the benefits and protections of a new legally enforceable contract. Negotiations for improvements to that contract will continue pursuant to Section 6 of the Railway Labor Act.  
Your Union representatives are happy to report that Pilot compensation will be adjusted to conform to the MCBA retroactive to October 10, 2017 and reimbursements made no later than the January 15, 2018, including but not limited to overtime payments, bonuses, and an additional year of longevity for Flexjet Pilots who upgraded to Captain.” 

Silver Airways Update
In their year end message to members the Silver Airways ExCo provided the following update on negotiations: 

“The Executive Council wrapped up another session of negotiations with the company last week.  This was our final negotiations session for 2017.  We have made great progress this year.  We currently only have two sections that we have not yet opened (01-Scope and 03-Compensation). 

While we cannot predict how long negotiations will take, we have made good progress thus far. The upcoming economic sections are often the most contentious and time consuming, but we are prepared, and with your support, should be able to proceed through them at a good pace.” 

TMC Negotiations Update
Mediation for the future Collective Bargaining Agreement (“CBA”) resumed on Tuesday, December 12, 2017, at the International Brotherhood of Teamsters office in Washington D.C. 
The sessions, which are monitored by National Mediation Board (“NMB”) Mediator Jane Allen, began with CEO Scott Wise giving an update on the state of the Company. Mr. Wise stated that recent meetings with the TMC’s lenders had gone well and management was still looking at lease options on additional aircraft, including the possibility of leasing additional Nextants. VP of Operations Chip Schultz gave a pilot recruiting update.  He reported the Company had received 37 applications last week and there were seven new hires in class. However, the Company was still short of reaching management’s goal of 145 pilots by year’s end.  Mr. Schultz stated the Company is trying to reduce attrition to “around” 30% annually. 

Discussions then turned to the issue raised recently by the Union with management regarding upgrade bids and the Seniority Letter of Agreement (“LOA”) that was signed in January 2017. The Union’s position, as stated in the recent email to all pilots, was that management was not in compliance with the terms and spirit of the LOA, since they were not maintaining an extra Captain in the Hawker fleet and had restricted which pilots were eligible to bid open vacancies, based on their current Position.  

Additionally, it was pointed out that the upcoming schedule bid again required Check Airmen and Standards Captains to be in a separate group for bidding next year’s schedule and that it is wrong to penalize pilots who volunteer for these vital leadership roles. The Union stated that a pilot should be able to bid and be awarded schedules according to their overall seniority, just like every other line pilot.  

Management stated they would consider the seniority issues, but that schedule bidding would remain the same for Check Airmen and Standards Captains, because “it works” for them.  
Union negotiators presented the latest counter-proposals for Sections 16, 18 and 20. Following a discussion on the open paragraphs, agreement was reached on all but one of the open items in Section 7; furlough pay remained unresolved.  Management then presented their latest counter-proposal for Section 10—Sick Leave. Although some movement was evident, management held fast to their previous position that only three sick days per year was adequate for TMC pilots; an opinion that union representatives expressed their strong disagreement with. 

After a short caucus and a visit from Airline Division Director Captain David Bourne; bargaining resumed. Agreement was reached on furlough pay, which was the last remaining open item in Section 7. This tentatively agreed (“TA’d”) section will become an important part of the future CBA, since it contains industry-standard protections in the event of any down-sizing. 
Negotiators then presented management with counter-proposals for Section 10 and Section 29—Retirement Plans, which concluded bargaining for this session. 

Before everyone left, Mediator Allen thanked both sides for a productive meeting and reviewed the agenda for next month’s bargaining session, which will be held in Cincinnati OH, January 17th -19th, 2018. 
 
Airline Industry News
American Airlines and its pilots union have reached a pre-holiday tentative settlement agreement on three issues that had long divided them. 
The issues include duty rigs involving pilots who have not been getting paid for all the days they are away from home; seniority restoration for pilots who had not been credited for time they were on furlough – this particularly benefits former TWA pilots – and outstanding grievances regarding pilot scheduling. 

The settlements require approval from the APA board of directors. 
Southwest Airlines announced it will no longer accept smart bags with nonremovable lithium batteries starting Jan. 15. Travelers will be allowed to bring their bags into the cabin with the batteries installed, but must be able to remove the batteries if the bags need to be checked. 
Hawaiian Airlines is looking to buy Island Air's operating certificate, ground-service equipment, furniture and frequent-flier lists for $750,000. "If approved, the sale will allow 'Ohana by Hawaiian to assume oversight of operations. Those operations would include the hiring of pilots, flights attendants, and customer service and maintenance crews," said Hawaiian Airlines spokesman Alex Da Silva. "We believe that assuming the FAA certificate will greatly benefit our guests by improving the efficiency and reliability of 'Ohana by Hawaiian."

Southwest Airlines CEO Gary Kelly said sweeping corporate tax cuts will allow the company to invest in more planes and expand its service. The tax reduction "takes us to a position where we can think about growing faster, and of modernizing our fleet faster," he said.  
Continued strong air freight demand and the resulting lack of capacity has been exacerbated by severe weather across Europe. 

Air freight forwarders have accused some airlines of exploiting the spot market by cancelling scheduled flights and not providing sufficient capacity.
 
 
 
Christmas 2017
 
As we gather with friends and family to celebrate the holiday season, we are thankful not just for the opportunity to be together, we are also grateful and thankful for those who during the holiday season are on the job. From the brothers and sisters keeping our aircraft safe and well maintained, to those who are in faraway places around the world, professionally and safely flying the skies; we of the Airline Division send you our warmest thoughts and best wishes. May we all keep them and their families in our thoughts as well, in anticipation of their safe return home to their loved ones as well.
 
On behalf of the Airline Division, we wish everyone a Merry Christmas. In commemoration of the Christmas holiday, the offices of the Airline Division will be CLOSED on Monday the 25thand Tuesday the 26th. We will reopen for regular business on Wednesday, December 27th.