Main News July 25

IAM in staff agreement ratification at US Airways

Three workgroups at US Airways, which are represented by the International Association of Machinists, have ratified three collective bargaining agreements that in total cover more than 11,000 employees. The agreements will remain in effect for US Airways’ employees until a joint collective bargaining agreement (extending to the 30,000 employees of the new American Airlines) has been reached.

Doug Parker, Chairman and CEO of American Airlines, expressed his pleasure in reaching the agreements. He added that these agreements would allow the company to focus on the next steps for the airlines’ fuller integration, and in so doing, would pave the way for bringing the two employee groups together.

Whilst it has been a long haul for the two airlines to get this far, other staff negotiations and agreements are in place, or at least are in the pipeline.

Delta hoping to profit from domestic crude

Monroe Energy, one of Delta Air Lines’ subsidiaries, has signed into a five-year agreement with Bridger (a midstream energy company), to supply 65,000 barrels of domestic crude oil daily to its refinery in Pennsylvania.
This agreement, which will supply about a third of the crude oil that is refined every day at the facility, is a significant step forward in Delta’s strategy to manage its jet fuel expenditure. This cheaper domestic crude oil from the Bakken fields in North Dakota will replace the more expensive crude that historically has been imported to the refinery.


Newark Liberty wages still undecided

According to sources, the matter of workers’ wages at Newark Liberty International could be resolved in the near future.

United Airlines, the airport’s primary carrier, has said that it still questions whether the agency has the legal power to impose a wage hike. But the airline has also said that its vendors may be contractually bound to comply with the order.

The Port Authority in January ordered wage increases of US$1 an hour after July 31 for workers who were making less than US$9 per hour; this category included baggage handlers and cabin cleaners. The agency also said that workers could be earning US$10.10 an hour by February 2015 and might see subsequent increases tied to the Consumer Price Index.

Improved service for Calgary

Cathay Pacific Airways has said that it will be enhancing its freighter services in Canada with the introduction of a twice-a-week scheduled service to Calgary: this is set to get underway in October this year. The Calgary service is to be operated with Boeing 747-8 freighters, which will be transporting machinery and perishables from Calgary to Hong Kong.

Job cuts at Buffalo create uncertainty

United Airlines has said that it will be outsourcing jobs at Buffalo Niagara International airport to a vendor. This cost-cutting move is likely to affect upwards of 70 employees and comes in the wake of the carrier posting a loss of US$609m in the first quarter of this year.

The action isn’t in isolation, though: United is going through the same process at a dozen US airports in all. The change will take effect in October this year, and will involve a range of employees such as baggage handlers and ticket and gate agents.

The impending outsourcing will create a degree of uncertainty for United employees at the airport. The vendor (PrimeFlight Aviation Services) will make the staffing choices and it is expected that those signed up will be on a lower salary level than at present.

On the plus side, all senior staff have been offered jobs, albeit not necessarily at the same station. Workers could well find posts at other United bases, such as Denver, Honolulu, Phoenix and Dulles, where staff are actively being sought. It is understood that severance packages are also available.

Main News July 11

Alliance partners boosting lounge at LA

The Tom Bradley terminal at Los Angeles International now has a new and improved Business and First Class lounge.

Qantas, along with oneworld alliance partners Cathay Pacific and British Airways, has unveiled the new premium class lounge, which is complete with showers, a bar serving specialty cocktails and coffees, and a taco stand.

Business, First Class passengers and certain frequent fliers with status will have a wide choice of seating areas, some social, some quiet for business purposes. A highlight is the communal fireplace, with ample seating surrounding it.

For now, the lounge is about 11,000 square feet. When it is completed early next year, it will be around 40,000 square feet in all, and will be able to accommodate up to 600 people.

Raising the bar – at last

A comprehensive wage and benefits proposal from the Port of Seattle Commission would raise minimum wages for thousands of airport workers to US$13 by January 1, 2017.

The proposal, unveiled at a recent port meeting at Seattle-Tacoma International, includes provision for airport worker benefits and vacations, as well as training for additional advancement.

The port’s re-examination of wages and benefits was spurred in part by City of SeaTac’s voter approval of a US$15 minimum wage late last year. However, the court ruled that the municipal minimum wage boost did not apply to the 14,000 staff then on low wages at the airport.

Luggage to go

Despite all the media coverage about charges for bags and the increasing cost of ancillary services on today’s carriers, travelers, it appears, are still quite happy to shell out for the luxury of taking their luggage with them.

These, at least, are the findings from surveys conducted by The GO Group, an international ground transportation service provider, and GO Airport Express, a GO member and Chicago-based ground transportation company serving O’Hare International and Midway airports.

More than 917 travelers were polled in this year’s survey on luggage preferences. The survey records that 32% of respondents said that they prefer to check in their luggage whilst 21% said that they prefer to carry on bags, with 26% admitting that they both check in and carry on bags. Some 27% admitted that their decision depended on the situation, such as the length of their trip and the number of bags they were carrying.

This compares with a 2013 poll of 570 travelers, in which 28% said that they checked their bags. Just 19% said that they always carry on bags whilst 23% said that they did both. In 2013 30% cited that it depended on the situation.

According to the Bureau of Transportation Statistics, passenger airlines collected US$797m in baggage fees, or 1.6% of total operating revenues, in 2013.

Lounge joint venture

At the start of the month American Airlines and Iberia announced the joint operation of their new Admirals Club/Iberia VIP Lounge at Ezeiza International airport in Buenos Aires. American had originally opened the Admirals Club at Ezeiza International back in 1991. However, in order to further enhance the travel experience for its customers, American has decided to team up with Iberia to build the new joint lounge in Terminal B on the upper level. The new VIP lounge is conveniently close to the boarding gates for Iberia flights.

In Brief

Global Ground Support has renewed the lease for its 112,000 square foot manufacturing facility in Olathe. In addition, the de-icer specialist expects to add 25 new jobs over the next five years.