Main News March 4

Airline employee numbers increase from 2013 to 2014

According to the US Bureau of Transportation’s Statistics, US scheduled passenger airlines employed 1.4% more workers in December 2014 than in December 2013. The number of full-time employees, at 386,219, was precisely 5,410 more than the previous December, and December also marked the thirteenth consecutive month that full-time equivalent (FTE) employment for US scheduled passenger airlines was higher than the same month of the previous year.

Included in the statistics are network airlines, low cost, regional and other carriers. Alaska Airlines, Delta Air Lines, American Airlines and US Airways saw an increase in FTEs from December 2013 while United Airlines saw a reduction.

The six low cost carriers, namely Allegiant Airlines, Spirit, JetBlue, Frontier, Southwest and Virgin America, all reported increases, employing 4.4% more FTEs in December 2014 than in December 2013.

The 13 regional carriers reported 0.2% fewer FTEs in December 2014 than in December 2013. Seven regional airlines – PSA Airlines, Shuttle America, Mesa Airlines, Republic Airlines, Compass Airlines, Horizon Air and GoJet Airlines – reported increased employment levels.

WestJet Cargo voted number one in Canada

WestJet Cargo was named Best Air Cargo Provider 2014 at the first annual Cargo Logistics Canada Awards of Excellence, which was hosted in Vancouver. Canadian supply chain companies voted online to select the top providers in 11 different categories.

Stephen Platt, WestJet’s Director, Cargo Operations and Sales, said of the victory: “We are very proud to win this prestigious award. It is particularly satisfying that the award is voted on by members of the logistics community in which we work. To receive this type of recognition from our partners and peers tells us we’re providing our guests with a great experience for their cargo needs.”

In the last two years, WestJet Cargo has expanded its network by over 70% and now services more than 40 cities in Canada, the US, Mexico, the Caribbean and Europe. In addition, the company has cargo interline relationships with more than 15 carriers worldwide, carrying everything from family pets to fresh produce and seafood to every continent in the world.

New lounge at San Diego International airport

San Diego International airport has opened Airspace Lounge, purported to be the airport’s first and only common-use lounge.

On February 25, a ribbon-cutting ceremony marked the opening of the lounge in Terminal 2 East, which has panoramic views of the airfield, comfortable seating areas, a full food and bar menu and even showering facilities.

According to officials, Airspace Lounge is operated by Swissport and is open to all airport passengers… for a fee. Unless, of course, you are the proud owner of an American Express Platinum or Centurion card, in which case you are entitled to complimentary access to the lounge.

Atlanta airport tightens employee security

Following the recent gun-smuggling scandal at Atlanta’s Hartsfield-Jackson International by a Delta Air Lines handler, the airport has implemented a screening procedure, which will check employee bags before permitting access to secure areas or closing access doors to the airfield.

Prior to the newly-introduced measures, the airport’s 70 access points for employees, including baggage handlers and ramp workers, only required them to swipe their badges to gain entry and workers were not subject to bag or body checks when going to work. Now, however, private security guards are checking their bags and personal belongings before allowing them to enter the main terminal through a security door.

Delta employees have confirmed that to access the ramp, they now have to enter an security code to open one door and then swipe their badges to open a second.

Airport spokesman, Reese McCranie, said that the airport had plans to reduce the number of employee access points from about 70 to 10. Additionally, secure area access has been revoked for about 4,400 employees working for various companies at the airport, who will now have to go through Transportation Security Administration screening to access these areas.

Main News February 20

WASP sells to Tronair

WASP has announced the sale of its commercial towbar and tailstand product line to Tronair. Of the business deal, Harley Kaplan, President and CEO of Tronair, said: “The addition of the WASP commercial towbar product line further strengthens Tronair’s growing position in the commercial GSE market and will be a tremendous value add to our customers.”

WASP’s President and CEO, Dane Anderson, commented: “It’s a win-win situation. Tronair can diversify its offerings with additional, specialized GSE for its customers around the world, while we at WASP can fully concentrate on the large format GSE products that our customers rely on us for in their daily operations.”

All major commercial aircraft types, from single aisle aircraft, like the Airbus A320 and Boeing 737 family, to a range of widebody aircraft, including the Airbus A330 and Boeing 767, 777 and 787 models, are supported by the commercial towbar and tailstand product line.

Xceding expectations

GSE finance and asset management company Xced Aviation Services, a subsidiary of Sasser Holdings, has finalized a major GSE lease contract with an industry-leading ground services provider as well as a top domestic airline operating out of Dulles International airport.

Of the agreement, William Long, President of Xced Aviation, said: “This deal is one of the first of its kind and our biggest contract since the firm opened its doors in May 2014. It is also an important example of the industry accepting what we are doing. For us to land such a contract so soon validates that we are offering a competitive service product that is not currently being provided to the market.”

The equipment package Xced Aviation will provide includes a combination of new and used ground support equipment in excess of 600 pieces, for the ground services provider to use in servicing the aforementioned airline. The sale also anticipates Xced supplying used GSE to the ground handler on a short-term basis, while the new equipment is delivered over a two month period, to ensure the seamless integration of service under the new contract.

Swissport Canada and Canada Council of Teamsters renew agreement

The Canada Council of Teamsters has renewed its collective agreement with Swissport Canada Handling Inc., who provide ground and cargo handling services from a unit at Dorval and Mirabel airports in Montreal.

With the help of the Labour Program’s Federal Mediation and Conciliation Service – which provides dispute resolution and prevention assistance to trade unions and employers – the terms of the renewed contract were agreed. The Canada Council of Teamsters was the bargaining agent for the unit at Swissport Canada Handling Inc., made up of 281 groomers, ramp and ground handlers, and mechanics and communications co-ordinators working at the international airports in Montreal.

Dr Kellie Leitch, Minister of Labour and Minister of Status of Women, congratulated both companies on the partnership, saying: “I applaud Swissport Canada Handling Inc. and the Canada Council of Teamsters for working together and finding a solution that will benefit everyone. The best solution is always the one that the parties reach themselves.”

Main News February 16

Hawaiian Airlines most on-time US carrier for 11 years running

Since 2004 Hawaiian Airlines has held the nationwide top spot for punctuality amongst US carriers – a winning streak that has now lasted for 11 consecutive years.

The airline, which is incidentally the largest and longest-serving in Hawaii, averaged a 91.9% on-time performance rating for the whole of last year, and ranked top in 11 of the 12 months, surpassing the industry average for 2014 by 15.7%. The only month it did not come top was December, when it landed second place with an 87.9% on-time performance rating. However for this month it is also ranked second for fewest flights cancelled at 0.3% – only 21 cancellations out of 6,426 flights.

Mark Dunkerley, Hawaiian Airlines President and Chief Executive Officer, said: “That we have been better at this than our competitors for 11 years in a row is a testament to the passion and commitment to the customer of Hawaiian Airlines’ more than 5,000 employees.”

During the fourth quarter of 2014, not one of the Hawaiian Airlines’ almost 2.5m passengers was involuntarily denied boarding, earning it first place nationally for the least number of “bumped” passengers during this period.

Winnipeg becomes first airport in Canada to receive LEED certification

Winnipeg’s Richardson International has become the first airport terminal in Canada to achieve the Leadership in Energy and Environmental Design certification. The LEED certificate signifies sustainable excellence for green buildings and the Winnipeg terminal achieved a silver rating, exceeding initial expectations.

Barry Rempel, CEO of Winnipeg Airports Authority, said of the achievement: “Attaining external validation of our commitment to the principles of sustainable development is truly exciting… our teams delivered a beautiful, functional facility that minimized its carbon footprint.”

LEED strategies utilized in the 51,500 square metre terminal’s design include daylight optimization to flaunt a continual view of the landscape and sensors that activate electric lighting only when necessary. The building is heated and cooled by circulating warm or cool water in tubing beneath the floor and the windows and roof are significantly more energy efficient thanks to superior insulation, which also prevents fuel emissions entering the building. Local and recyclable products and materials were used as much as possible to minimize energy used in transportation.

Winnipeg International claims to be located at the geographic centre of North America and handles over 3.67m passengers annually. With round-the-clock operations it also says that it is the leading dedicated freighter airport in Canada as measured by the number of flights.

The airport notes it is one of only 17 terminals in North America, and 24 worldwide, to have received LEED certification for new construction projects.

In 2011, the Montreal head office of Air Transat became the first building in Canada to be awarded LEED platinum certification in the existing buildings category.

Airfreight recovery imminent?

According to the International Transport Forum, airfreight tonnage has recovered to its pre-crisis level in the US and European Union – possibly indicating a wider global economic recovery.

ITF says, consistent with its quarterly figures to the end of November 2014, that this is the first time an upsurge like this has happened since the second quarter of 2012. For some four years, the quarterly ITF index has not been encouraging.

ITF also states that sea traffic is also recovering well, but significantly lagging behind the air cargo industry and that it is still 1% below its pre-crisis levels.

Pay protests at JFK

A one-day strike has ensued by Aviation Safeguards employees at John F Kennedy airport in New York. A picket line was set up outside the British Airways terminal by a few dozen baggage handlers protesting unfair labor practices, according to spokeswoman Amity Paye. Paye went on to say that about 30 members of staff walked out at 6am on February 12, one of four shifts of about 100 workers joining the picket line throughout the day. Reportedly no flights were disrupted.

Paye said the baggage handlers are fighting for higher wages, benefits and the right to unionize.

 

Hartsfield-Jackson International plans recycling facility

Proposals have been made for the construction of a large recycling facility in the city of Atlanta to deal with the waste generated at Hartsfield-Jackson International airport, estimated at 25,000 tonnes a year. The Atlanta airport handles over 96m passengers annually, making it the world’s busiest airport; yet a study found that only 5% of the waste stream from the airport’s passenger terminals and seven concourses was recycled in 2012. The city is now looking to avoid landfill use and recycle or compost at least 90% of its waste by January 2020. A 30 acre site has been selected and a tender has been allotted for the development and operation of the facility, which is hoped to be up and running by March 2017 and known as the Green Acres ATL Energy Park.

The aforementioned 2013 study indicated that around 80% of the current waste from the passenger complex consists of materials that could be recycled or composted, with 29% made up of food waste and 32% of compostable paper. In addition to food and paper, the new facility must be capable of handling 175,000 gallons of cooking oil and 50,000 gallons of grease trap fluids every year. Potential developments are already under consideration, including an education centre, a waste-to-fuel facility and local food production.

Airport workers request minimum standards

Airport workers, backed by a labor union, plan to ask the Port of Portland to implement a set of minimum standards to address their concerns over low wages, high turnover, understaffing, safety and equipment problems.

The Service Employees International Union (SEIU Local 49) released a paper with findings from a survey of 148 workers employed by subcontractors at Portland International, including fuelers, cabin cleaners, baggage handlers, ramp agents, ticket agents, wheelchair attendants and skycaps. Of those surveyed, 64.6% felt that they did not have enough staff to do their jobs well, 68% felt at risk of repetitive strain injuries and 67% reported that their equipment was in poor condition or insufficient.

Airport workers planned to attend the Port of Portland Commission’s review of a workplace initiatives document and in order to call attention to the importance of adopting a set of minimum standards at the airport. Minimum regulations need to be established as the survey found persistent poverty because of low wages, with many subcontracted workers relying on public assistance programs to afford the bare essentials, such as food, shelter and healthcare.

Main News February 11

Cargo record at Port of New York and New Jersey

The Port Authority of New York and New Jersey has announced that it has beaten its previous annual cargo record from 2012 by 4.1%, handling a total of 3.3m cargo containers in 2014. This marks an increase of 5.4% from 2013 figures, in addition to breaking the previously established 2012 record. Subsequently the port maintains its position as the busiest on the East Coast, accounting for nearly 30% of the total market share.

Another annual record was broken in 2014 by ExpressRail, the port’s ship-to-rail system serving New York and New Jersey marine terminals, which handled 9.3% more cargo containers than in 2013, at a total of 465,405 containers. Once again, the previous annual record was set in 2012, with 433,481 containers handled. The agency has invested more than US$600m in ExpressRail, aiming to improve port efficiency, competitiveness and reduce emissions, and plans to build a new facility in Greenville Yard in Jersey City. Funding for all of the port’s road, rail and security projects is now provided by portwide Cargo Facility Charges.

FedEx changes domain at Illinois

FedEx launched new operations at Central Illinois Regional Airport in Bloomington on February 2, following announcements that it was terminating business at Peoria airport, on the west bank of the Illinois River. Flights will mainly operate to Indianapolis and Memphis from the new location. According to the carrier, the move will allow improvements to its priority overnight service and enable earlier delivery times to the central Illinois customer base, while maintaining its Peoria delivery schedule.

The future of de-icing

Gary Lydiate, Chief Executive of Kilfrost, a major supplier of de-icing and anti-icing chemicals, predicts that within 15 years, a durable fuselage coating will be developed to combat icing in aircraft. This may mean an aircraft need only receive preventative treatment monthly, or potentially even less frequently, during the winter months. If the new concept is approved by industry regulators, Gary believes the sector would be open to a verified alternative to chemical spraying. Commenting on the main constraints of the endeavor, he said: “It’s mainly a technical issue at the moment… trying to make something that’s adhesive to the wing and does not distort the airflow.”

Similar ideas already in operation include liquid-metal “heating blankets” such as those bonded inside the leading edge of Boeing’s 787 Dreamliner’s wings, which are powered electrically and are intended to deter or remove ice. Other “bleed air” designs use hot air from the engines to remove ice, though according to Boeing this is less efficient and creates additional drag and noise during flight. Eventually, the fuselage coating technique could merge with other aircraft designs and be used more extensively on aircraft. Some researchers even speculate that nanotechnologies might be implemented in aircraft design and used to combat ice-related problems by changing the shape of the wing or other flight surface.

Air Canada agreement with IBT

Air Canada’s US-based workforce has reached a provisional agreement with the International Brotherhood of Teamsters, which represents approximately 650 Air Canada airport, cargo and call center employees based in the US. The tentative agreement is subject to verification by union membership. Details of the agreement will not be released prior to ratification and approval by the Air Canada board of directors.

In October last year, Air Canada reached a tentative agreement with the Air Canada Pilots Association, which represents 3,000 Air Canada pilots, on a ten-year labor contract.

Main News February 4

Airline catering employees protest unaffordable healthcare

A union representing some 27,000 airline catering employees has launched a national campaign, involving events in Chicago, Atlanta and Dallas, amongst others, aimed at leading airlines. Recent protests were held in major US cities by employees in the airline catering industry, deploring unaffordable healthcare. Workers claim their healthcare is so extortionate that many are consequently underinsured or uninsured altogether. A petition was delivered to representatives of United, American Airlines and Delta on behalf of nearly 12,000 workers at 31 US airports, who suggest that for just a nickel a ticket the airlines could resolve the issue.

According to a 2014 analysis of nearly 10,000 contracted airline catering workers nationally, over 40% make less than US$10.10 per hour. Such low wages mean workers are unable to pay the premiums of “minimum value plans,” but are also unentitled to purchase more affordable options from health care exchanges. Some employees pay annual premiums for company offered healthcare of over US$1,400 for individuals and US$5,000 for families, in addition to an extra US$5,000 minimum deductible. As a result, many struggle to make ends meet: in the aforementioned survey, 25% of airline catering workers reported receiving some sort of public assistance.

And while all this struggling is going on, the US airline industry is flourishing. American Airlines, for example, reported a record US$1.2bn net profit in the third quarter of 2014. Yet they, along with Delta, United and other airlines, continue to short change their catering staff.

Major jet fuel leak at Honolulu airport

A 43,000 gallon jet fuel spill at the ASIG facility is posing a threat to coastal waters in Honolulu.

The Hawaii State Department of Health, Hazard Evaluation and Emergency Response Office and the US Environmental Protection Agency have been overseeing response efforts since the leak sprung from a 2.8m gallon capacity above ground storage tank, which supplies jet fuel to Honolulu airport.

ASIG is under strict orders from EPA to take measures that will stop contamination of further water or shoreline areas. The company’s recovery efforts include pumping the product from trenches and tank monitoring wells and so far approximately 16,000 gallons of fuel has been recovered. Efforts will continue to remove any released product, ensure the spill is contained and prevent an impact on State waters.

The Health Department has said that the spill poses no risk to drinking water, but fuel has spread from the facility through subsurface contamination and is within 150 feet of the harbor.

Jared Blumenfeld, EPA’s regional administrator for the Pacific Southwest, said: “Our action is to make sure the fuel is cleaned up quickly to protect public health and Oahu’s ocean environment. We will be monitoring the work closely, and will investigate the cause of the spill to prevent one from happening again.”

Centurion faces eviction

US-based cargo carrier Centurion faces yet another lawsuit, shortly after returning to action in December 2014.

Aero Miami III, the carrier’s current landlord, is requesting that the airline be evicted from its facility at Miami International airport. In December 2014, Centurion was accused of owing more than US$10m in lease payments to AWAS subsidiary Pegasus Aviation Finance, which sought to repossess five aircraft operated by Centurion and its sister airline, SkyLease. The case was later resolved outside of court, and Centurion retained the aircraft, yet it is believed that Aero Miami filed its suit against Centurion the very same day. Centurion denies any outstanding rent payments on its 800,000 square foot facility, retaliating with counter-accusations that Aero Miami overcharged for services and criticizing US$9m worth of construction defects at the facility. The first hearing in Aero Miami’s eviction case was set for February 3, in Miami-Dade County Circuit Court. Next month, despite the ongoing legal disputes, Centurion has said that it is planning to relaunch its scheduled B747-400F Miami-Amsterdam service, to be operated by SkyLease. Centurion currently operates three MD-11F aircraft, while Sky Lease operates three B747-400ERF and a B747-400F type.

Main News January 30

It pays to work for Alaska Airlines

Alaska Airlines and Horizon Air employees are receiving annual bonuses of more than 9% of their annual pay, equating to more than five weeks’ pay for most workers. The bonus is in addition to the approximate US$1,000 monthly bonuses in 2014, that most employees were awarded for fulfilling on-time, customer satisfaction objectives. The company’s monthly and annual bonuses, which are part of their incentive-based pay program, came to almost US$116m in 2014, the highest in Alaska’s history.

Tammy Young, Alaska Airlines’ Vice President of Human Resources, said: “We’re really excited to reward our employees for all the great work they’ve done this year. This is the sixth year in a row Alaska and Horizon employees have exceeded their payout targets for performance-based pay.”

The annual bonuses are divided up geographically as follows: nearly US$51m (55% of the total) is being paid to nearly 6,000 Alaska and Horizon employees in the Puget Sound area. US$12m is being paid to 2,122 employees in Portland, Oregon, while US$9m will be paid to employees within the state of Alaska.

Bonuses in the company’s performance-based pay plan are achieved by meeting specific company-wide aims established annually by the board of directors, relating to issues of safety, customer satisfaction, cost control and profit. Since launching the program in 2003, Alaska has paid employees US$624m in combined incentive-based pay and monthly bonuses. Alaska Air Group has contributed a further US$620m over the past six years to its benefit pension plans as part of its goal to provide employees with rewarding careers and good retirement benefits.

LAX police union criticize LAPD for luggage-theft raid

In March 2014, Airport Police suspected around two dozen baggage handlers at Los Angeles airport of being involved in a scheme to steal from travellers’ luggage. However, almost a year later, no one has been charged. When the scheme was first uncovered, the LAPD detained 14 people for questioning and arrested six – four on suspicion of receiving stolen property and two on outstanding arrest warrants – but those detained were never successfully linked to any stolen airport property.

According to the airport police union President, Marshall McClain, the raids took place despite concerns that the taskforce lacked police reports identifying stolen property or victims. He went on to say that one arrest was made following the discovery of several electronic devices at the home of an airport employee, despite no police report identifying the recovered items as stolen. And the suspicious goings-on don’t end there. An Airport Police officer who voiced concerns over the legality of the arrest has since been reassigned from his position as detective, indicating retaliation from his own department. A Los Angeles police chief strongly disputed the union’s claims, saying that prosecutors and a judge approved search warrants prior to the raid, but did acknowledge that the taskforce had been unable to identify specific victims or tie property found during searches to anything stolen from airline passengers. He resolves that the LAPD, “sent a clear message that thievery wasn’t going to be tolerated.”

Union President McClain said that his only motivation was to ensure that officers were not asked to break the law or violate people’s civil rights.

DHL Global Forwarding completes Chicago freight station

Following a year’s construction, DHL’s US$35m freight station located at Chicago O’Hare is open for business. The three-story, 491,000-square-foot facility has become the company’s largest in the US, with a combined office and warehouse capacity big enough for 500 workers.

The facility has been validated by the Customs-Trade Partnership Against Terrorism and is certified by the US Transportation Security Administration as a cargo screening facility. It is expected that, by the second quarter of 2015, the facility will be authorized as meeting federal security handling guidelines by the Transported Asset Protection Association. The two temperature-controlled chambers, plus a 999 square-foot ambient-temperature receiving area, make the facility one of only eight certified Life Sciences Stations in the US, capable of handling pharmaceutical, biotech or medical products. Additionally, the DHL facility is in the process of obtaining a Leadership in Energy and Environmental Design (LEED) certification for energy-efficient buildings, thanks to its various environmentally-friendly aspects, including high-efficiency lighting and the use of materials with low-emitting indoor air contaminants.

Main News January 21

US airport workers protest

On January 15 in New York, amongst other cities, airport workers staged a protest to demand higher wages in one of several protests planned to mark the birthday of civil rights leader Martin Luther King Jr.

About 200 service workers blocked bus and car drivers by sitting down on a street bridge leading to New York’s LaGuardia Airport. The crowd was moved on, however, after only a few minutes, following the threat of arrest by police. Additionally about 100 non-unionized airport workers at Philadelphia Airport marched silently through four terminals to a designated ‘free speech zone’ where they held a rally accusing contractors of disregarding minimum wage rules. Similar protests were planned elsewhere.

Most workers contracted by the three major airports serving New York City that work in cleaning, baggage handling and security (amounting to some 12,000 staff), earn US$9 per hour. The Port Authority of New York & New Jersey, which operates the airports, ruled last year that its contractors must pay at least US$10.10 an hour to most airport workers starting in February 2015, a Port Authority spokeswoman said. A US Representative and New York Democrat, called the economic disparities “a disease” and deplored the immorality of neglecting those that contribute to America’s economic strength.

Frontier to outsource a third of workforce

On January 16, Frontier Airlines announced that it will outsource about 1,300 workers in a move to replace these employees with contract workers. Frontier’s outsourcing will target about 1,160 jobs in Denver and another 140 in Milwaukee, affecting about a third of the carrier’s total workforce. Frontier plans to hire a unit of Swissport International to take over its ground operations at the Denver airport, its biggest hub by far. The airline also plans to outsource the jobs of 140 Milwaukee-based reservations workers to a privately held company based in Nashville. A Frontier spokesman stressed that the decision had nothing to do with the level of work provided by its employees and that those affected by the change would be given priority for interviews if they wished to seek employment with the contractors. He added that it was a “difficult but necessary decision to transition the management of these departments to business partners who specializes in these areas.”

United Airlines reinstates workers

On January 12, United announced they were considering cutting up to 2,000 jobs at 28 airports around the country and hiring a contractor to provide bag-handling and other services currently provided by these employees. This came as part of an effort to ensure its costs are competitive, to increase revenue and improve customer service. United Airlines Senior Vice President of Airport Operations Jon Roitman has since said that it will complete ‘insourcing’ work at nine large airports early summer 2015. Following discussions with leaders of the International Association of Machinists and Aerospace Workers, who represent the affected United employees, the airline plans to bring back other jobs that had been turned over to contractors. Since this announcement, the airline has decided to reinstate 40 previously furloughed ramp employees, after massive baggage-handling issues at Denver International Airport. The 40 recalled workers are among 159 United employees let go as part of budgetary cutbacks. “These recalled full-time workers will help us meet operational needs for spring and summer,” said airline spokesman Charles Hobart. United’s baggage operations were subject to criticism following passenger reports of lost luggage, delayed flights and waits lasting several hours for checked luggage to appear at baggage claim, though these problems are now starting to subside.

US partially lifts embargo with Cuba

The Obama administration has eased travel restrictions and opened a wide range of new export opportunities with Cuba, as they begin work on ending the five-decade Cuban embargo in 2015. Although only Congress has the authority to fully end the 54-year embargo, President Barack Obama announced that he would soften the restrictions, saying: “we are ending a policy that was long past its expiration date. When what you’re doing doesn’t work for fifty years, it’s time to try something new.

Following 18 months of secret discussions and the exchange of imprisoned spies, a new co-operative attitude developed between the two countries, meaning that almost any US organization can now offer trips to the location without the previously necessary paperwork and inspections that discouraged expansion of travel to Cuba in the past. The US Chamber of Commerce previously estimated that the embargo cost the US economy US$1.2bn per year in lost sales and exports, while the Cuban government estimated that the embargo cost the island US$685m annually.

Main News January 14

United Considering Outsourcing Some Airport Jobs

In an effort to cut costs by US$2bn a year as per 2013 objectives, United Airlines gave some 2,000 of its workers notice on January 12 that their jobs are on the line. The airline announced that jobs up for review included baggage handlers and gate and customer service agents at 28 airports, from Atlanta to Connecticut, but no firm decisions have been made as yet. In an investor update on January 9, United announced that it expects 2014 unit costs to increase by up to 1.4% year-on-year, not including fuel and other special charges.

“We need to ensure our costs are competitive and we are considering transitioning some of our operations at select airports to an outside vendor,” United spokesman, Luke Punzenberger, said. United has long faced competition from Delta Air Lines and American Air Lines, United Senior Vice President of Operations Jon Roitman said in a letter to affected employees: “our major competitors… have workforce arrangements, including market competitive sourcing, that allow them to operate in these stations at significantly lower costs that are more in line with local markets.”

This is the latest in a series of manoeuvres by the airline to cut costs by cutting labour, with the company having outsourced nearly 500 jobs to outside vendors in 2013 and more than 600 jobs at 12 other US airports in autumn 2014. Subsequently, United reported an increase of 99% in the third quarter of 2014 over the third quarter of 2013, its highest-ever quarterly profit.

Most of the jobs under review are held by workers who were employed before April 2006, whose union contracts prevent them from being laid off. If United decides to proceed with outsourcing, it would have to offer these workers a job elsewhere in the company, although employees could decline, according to a source close to the situation.

Now that United has notified the International Association of Machinists officially of its review, it will enter negotiations with the union to see how it could retain workers within the airline.

Textron acquires Douglas Equipment

Douglas Equipment, a manufacturer of GSE based in Cheltenham, England, will now operate as part of Textron Specialized Vehicles’ companies’ GSE business. Textron Ground Support Equipment UK acquired the Douglas Equipment business from Curtiss-Wright Flow Control UK, a subsidiary of Curtiss-Wright Corporation. The Douglas brand will join the Textron Specialized Vehicles companies’ stable of brands alongside TUG™, E-Z-GO, Cushman, and Bad Boy Buggies. Douglas Equipment is well suited to the Textron Specialized Vehicles group, as its specialization in towbarless and conventional aircraft tractors and runway friction measurement systems complements TUG Technologies’ leadership in baggage and tow tractors, pushbacks, belt loaders, ground power units, air-starts, and mobile HVAC units. Douglas will continue to operate from its UK facilities in Cheltenham and Poyle, UK with its workforce of more than 90 employees intact. Kevin Holleran, president of the Textron Specialized Vehicles group of Textron said: “We are excited to welcome Douglas to the Textron Specialized Vehicles family and to our ground support equipment business. The acquisition of Douglas and its unique brand and products, only a few months after our acquisition of TUG last spring, demonstrates our commitment to the GSE industry and our many customers.”

IAG Cargo expands Cargo Connector service

On 14 January, IAG Cargo announced it has launched its new Cargo Connector service in San Francisco, the tenth of an original seven cities on its global network to benefit from the service. In addition to services available in New York, Los Angeles, Chicago, Dallas, Atlanta, Seattle and Houston, IAG Cargo’s collection service is also available in the UK, at London Heathrow, and in Frankfurt, Germany. Drivers in IAG Cargo-branded vans collect freight and process new cargo bookings on-the-spot, making connection to IAG Cargo’s network of 350 destinations simple and efficient. The Connector vans are never far away when a pickup is required, with 95% of customers based within a 5 mile radius of the airport.

Freight forwarders in San Francisco can now also have IAG Cargo collect and courier shipments of less than 300 kilograms direct from their premises to the airport, at no extra cost. Joe Le Beau, Regional Commercial Manager North America, at IAG Cargo, said: “It’s great to see that we’ve already expanded Cargo Connector to ten cities worldwide. Following the positive response from the trial period, Cargo Connector in San Francisco has become a firm favourite with the local freight forwarding community. Not only is Cargo Connector proving more cost efficient for smaller freight forwarders that would normally pay a third party to deliver their freight, but also with our GKA’s who really appreciate the peace of mind this service offers.” He went on to say: “Our customers have been pleasantly surprised how quickly the Cargo Connector van arrives at their facility to collect freight just 15 minutes after we have finalised their booking details. As well as offering our customers two daily flights to our Heathrow hub, the Connector van has been the perfect addition to our business at San Francisco, and has taken our customer service to a completely higher level.”

Main News January 9

Baggage delays for United Airlines passengers

From early December to the first week of January, United Airlines passengers have struggled to reclaim their baggage following flights into Denver, with delays of delivery lasting several hours to several days. The root of the problem is thought to lie with the ground handling staff for United’s regional Express flights. In their efforts to rectify the problem and ensure the right luggage is on the right aircraft, several United flights have consequently been delayed in addition to the delays surrounding baggage.

In September 2014, United terminated its contract with its previous ground handling contractor, SkyWest Airlines, and signed up with Simplicity Ground Services in the hope of improving operations. It is clear that the airline and Simplicity Ground Services – who blame the issues on the influx of fliers during the festive season – have some kinks to iron out before it can expect operations to run smoothly.

Sodexi opens freight warehouse at Paris CDG airport

A new 7,600 square metre express freight warehouse has been opened at Paris Charles de Gaulle airport by airport operator Aeroports de Paris and the Sodexi, which handles freight for airlines including Air France-KLM and Estonian Air, amongst others. The warehouse, which will be used to process air freight and mail, cost €22m to construct and was completed in autumn 2014. It is estimated that the facility, located adjacent to the passenger terminals, will be able to process up to 55,000 tonnes of freight per year from more than 160,000 commercial flights. Jerome Balbi, managing director of Sodexi, praised the performance of the facility and expressed high hopes for its rôle in transporting international freight in a timely manner.

“A parcel collected at the end of the previous afternoon in Hong Kong will arrive in Paris in the morning, and can be connected straight away to a flight to southern Europe or Scandinavia, for example, with delivery in the early afternoon,” he said.

Southwest Airline’s largest cargo operation

Despite being only the tenth largest airport in terms of departures, Los Angeles holds the impressive title of largest cargo station for Southwest Airlines. The cargo handled here, which includes anything from live tropical fish to organs for transplants, exceeds 30m pounds a year, or 80,000 pounds a day. This grand number is somewhat overshadowed, however, by Southwest’s figures for 2013, which state an enormous 3.5bn pounds of cargo was handled at the station over the course of that particular year.

Gun-trafficking suspect waives preliminary hearing

Eugene Harvey, a Delta Air Lines baggage handler in Atlanta, was arrested just before Christmas on charges of smuggling firearms on to passenger aircraft to New York City at Hartsfield-Jackson International airport. On January 6 he waived his preliminary hearing in the federal court and was freed on an unsecured US$25,000 bond. According to his lawyer, he has denied any wrongdoing despite an FBI statement that there was enough evidence to charge Harvey with trafficking firearms, violating airport security and assisting others in the scheme.

 

Main News December 19

Southwest agrees deal with workers

The International Association of Machinists and Aerospace Workers, which represents Southwest Airlines’ 6,000 customer service agents and customer support and services representatives, recently agreed to a new four-year contract. According to Southwest, the agreement makes provision for pay increases, along with bonus opportunities, that are linked to both company and employee performance. Southwest said in a statement that overall it is almost 83% unionized and that it is actively engaged in negotiations with six out of its 12 unions.

New glycol recovery facility at Montreal

Aéroports de Montréal and Aéro Mag recently inaugurated a state-of-the-art ethylene glycol recovery, recertification and re-use facility at Montréal-Trudeau International airport’s de-icing centre. This is set to significantly reduce the airport’s environmental record while reducing de-icing charges for airlines.

Representing a US$10m investment, the facility uses a sophisticated process to concentrate ethylene glycol employed in aircraft de-icing operations and restore it to a level of at least 99.5% purity for re-use. Interestingly, this process is considered a world first. ADM has contributed US$7.1m to the construction of the facility while Aéro Mag invested US$2.9m.

Remuneration policy to change?

Doug Parker, American Airlines’ Chief Executive, has suggested that airlines should stop sharing profits with employees and instead look to improve wages. This rather flies in the face of ongoing pressure from his own workforce, who wish to have part of their pay linked to the airline’s annual performance figures. In an interview, he dismissed profit-sharing as an outdated concept, despite the fact that other US carriers are happy to publish the pay-outs given to employees each quarter.

“They’re bankruptcy-era contracts, and we’re past those days,” he asserted, adding that airlines offered profit-sharing in the last decade to make up for wage cuts. “We should move back to what normal industrial companies do, which is pay people (what) they earn. People prefer to have the certainty of wages.”

Tanaris Power bought out

Recursos Montana has announced that it has initiated the purchase of Tanaris Power from Enterprise Asset Management. EAM is currently in negotiations to spin out Tanaris Power, which holds contracts for evaluation and sales for ground support equipment.

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