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Main News December 5

Keeping the Spirit alive

Integrated De-icing Services has announced that it has been awarded the de-icing provider contract for Spirit Airlines at Detroit’s Metro airport.

Daniel Young, Director of Sales, Marketing and Customer Relations said: “The new contract became effective on October 1, 2014. Everything came together quickly because we already de-ice Spirit’s aircraft in Minneapolis and Chicago, so we have resources readily available in this part of the country.”

Integrated De-icing Services actually began its relationship with Spirit at Chicago. The association grew with an additional award at Minneapolis St Paul. Stan Berton, Senior Manager Airport Affairs, added: “We have enjoyed a very productive relationship with IDS in recent years. The Detroit award is a natural extension of our relationship and is part of a strategic regional alignment for the three airports.”

Sal Calvino, President of IDS also commented on the latest signing.

“Both companies are leaders in their categories, youthful and growing. Our operating philosophies are very similar in terms of service and providing the best value to our customers. We are very pleased with the addition of Spirit at Detroit.”

Phili-buster: a sign of the times?

Passengers at Philadelphia International airport experienced some disruption on November 20, when strike action by a number of bag handlers from Prime Flight got underway. In all, more than 100 baggage handlers voiced their unhappiness over wage levels, which currently stand at US$9.00 an hour: they claim that they have been promised US$10.88.

Some of the affected airlines said that they had made arrangements to cover the staff who were involved in the dispute. This action isn’t isolated: in recent weeks there have been other, wage-related actions, notably at Los Angeles, JFK and La Guardia airports.

Menzies initiative aims at improving LAX

Just a couple of months after state investigators fined Menzies Aviation a total of US$77,250 for serious safety violations that culminated in the death of a worker at Los Angeles International, the handler and employee unions have formed a partnership with the aim of improving working conditions for ramp staff.

Menzies officials and the Service Employees International Union, United Service Workers West, will work together in order to draw up new health and safety standards for many workers at Los Angeles.

Amongst other things, the partnership seeks to establish joint health and safety committees that will be staffed by Menzies and union officials, health and safety advocates as well as Menzies employees. In addition, worker health and safety training programs developed with industry experts will be formulated to address the hazards faced by Los Angeles ground service teams. Moreover, new vehicle and heavy equipment inspection initiatives will be introduced and new methods whereby workers can raise health and safety concerns with senior Menzies management staff will be implemented.

Main News November 14

Wage increases come under legal pressure

Seattle has been in the news this year because of the unprecedented pay awards for airport workers, something that has found a seam of empathy elsewhere in the US. But that victory is now being challenged…

US airlines have said that they are suing the Port of Seattle in order to block planned pay increases for airport workers. This is the latest legal battle over efforts to improve worker compensation in a state which currently boasts the highest minimum wage in the country.

The Port commission agreed to raise salaries to US$11.22 per hour for January 2015, and improving this to US$13 per hour in 2017 for airport employees. However, Airlines for America has now filed a suit, arguing that these wage increases conflict with state and federal law, as well as existing labor agreements. The suit was joined by Baggage Airline Guest Services.

For its part, the Port maintains that its commissioners acted within their authority when they agreed to the wage demands. It added that the move was aimed at reducing employee turnover.

Although voters in the Seattle suburb of SeaTac approved an initiative last year that would enable a US$15 minimum wage for many workers, airport staff were subsequently excluded. However, in June this year, Seattle’s city council unanimously approved the US$15 per hour minimum.

Big investment at Mitchell

Mitchell International airport is to benefit from US$14.4m worth of improvements, including a new de-icing facility and upgrades to a runway, under a project recently announced.

The de-icing facility has a more environmentally-friendly collection system and will allow the aircraft to de-ice closer to the runway, according to Wendy Hottenstein, who is the Project Manager with the state Department of Transportation.

One runway at the airport has deteriorated over time and will be resurfaced as part of the project, she added.

For the project the Federal Aviation Administration will contribute US$10.8m and the state and county will each contribute US$1.8m. The project is scheduled to begin late this year and should be completed by the summer of 2015.

Also announced has been US$1.3m to rehabilitate a runway at Timmerman airport on Milwaukee’s northwest side. The FAA is contributing US$1.17 m towards this, with both the state and Milwaukee County each contributing US$65,000.

ULDs finding favor in the US

Just a few weeks after securing a five-year contract to manage and maintain ULDs for American Airlines Cargo, Germany’s Jettainer has followed up its progress in the North American market with a new division, that of Jettainer Americas, which is located in Delaware.

This new division plans to open other branch offices across the US, beginning with Dallas Fort Worth, which is the largest hub for AA Cargo’s parent, American Airlines Group, the world’s largest airline following its merger with US Airways.

Jettainer, which had been handling ULD equipment and maintenance for US Airways since 2005, will now take on the management of American Airlines’ 15,000 additional ULDs. Other planned locations for Jettainer Americas will include Miami, New York, Chicago O’Hare and Los Angeles. The ULD handler will also be introducing ground operation supervisors at each location to manage all co-ordination efforts with the airline via its JettApp application, which can track the movements of each ULD.

Main News October 29

Rich pickings?

Berkshire Hathaway’s NetJets is looking for compensation and benefit cuts from more than 600 employees represented by the Teamsters Union. This is part of a plan aimed at lowering costs for its wealthy clientele. The Ohio-based business jet operator is owned by Warren Buffet’s holding company and currently provides business and leisure travel to some of the world’s wealthiest individuals.

The Teamsters Union represents a range of NetJets staff, including flight attendants, aircraft mechanics, maintenance controllers, aircraft cleaners, aircraft refuelers, stock clerks and flight dispatchers.

NetJets’ stance is simple: it is trying to reduce the cost of aircraft operations for its clients. However, to fund this, it is attempting to gain concessions from its workforce, and this has proved the sticking point since the plan was first mooted, almost four years ago.

To try and placate the parties involved, the federal government recently appointed a mediator. However, as a result of NetJets’ bargaining demands, little progress has actually been made in negotiations covering other unionized employees, including those who perform safety functions for the company, such as aircraft maintenance and flight dispatching.

Purchase agreement to be signed this month

The North America-based management team of the Liquip Aviation division, together with the Alfons Haar Group, has entered into a definitive purchase agreement to buy the assets of Beta Fluid Systems from the McAleese Group of Australia. The transaction is expected to close on October 31.

“The objective for our management team was to partner with a company that aligns with our commitment to reliability, support and delivery, and also demonstrates a culture of long term investment in product innovation. Our partnership with Alfons Haar meets all of these objectives,” commented Jon DeLine, President of Liquip’s Aviation division. “They are an exciting addition to our business who gives us access to technology that provides an increased value to our customers.”

“This partnership allows Alfons Haar to invest alongside a high performance team that is growing in regions and segments of the market that are a perfect fit for Alfons Haar and our fueling components,” added Thomas Haar, Managing Partner of Alfons Haar. “Customers across the Americas will still have the great reliability and support they have today in BETA, coupled with highly innovative options from Alfons Haar in the near future.”

While a number of Alfons Haar components are available in the Americas today, the group will be working to introduce a suite of solutions to the region that have only been available hitherto outside of the region.

Airline merger triumphant

On October 20 American Airlines and US Airways reached a significant milestone in their merger as their cargo divisions finally combined under a single air waybill. The new entity currently brings in more than US$800m each year and moves more than 1bn pounds of freight and mail annually.

The cargo teams have successfully combined 154 facilities and have been harmonizing products since December 2013, making it the first operations division at the airline to become fully integrated.

Signature adds to its FBO network

Signature Flight Support, a BBA Aviation company, has agreed to acquire the FBO assets of Wiggins Airways from Ameriflight at Manchester–Boston Regional airport in Manchester, New Hampshire. The transaction is expected to close before the end of this month.
Signature Manchester, New Hampshire will provide FBO services to include fuel and ramp servicing, de-icing and anti-icing, passenger and crew services as well as charter handling. The campus consists of a passenger terminal and three hangars that total around 87,000 square feet and which are capable of housing large cabin business aircraft. The facility operates its own fuel farm for Jet-A, AvGas, automotive fuel and diesel.

Main News October 17

Greater automation at Los Angeles International

Los Angeles International has unveiled 40 new automated passport control kiosks at the Tom Bradley International Terminal to expedite the entry process for international passengers.

The new kiosks can be used by both American and Canadian citizens traveling from abroad, as well as travelers from 38 Visa waiver countries registered with the US Customs and Border Protection’s ESTA program. These facilities will allow passengers to submit their customs declaration forms and biographic information electronically, which will help in reducing time spent at the CBP office.

Passengers will also have an option to select one of 13 languages as they pass. Easy-to-follow instructions will help the scanning of passports, taking a photograph using the kiosk, answering questions and fingerprinting for non-US citizens.

Ebola: fears in New York

With Ebola making headlines around the world, it’s perhaps not surprising that aircraft grooming staff have concerns for their welfare. That concern manifested itself a few days ago in New York. There, around 200 Air Serv cabin cleaners set up a picket outside a LaGuardia airport terminal over health and safety issues.

Citing an unsafe working environment, one that puts them at risk from passenger by-products, they are looking to form a union. Part of their worry concerns the increasing pressures on them to clean an aircraft thoroughly in a very short period of time, something that they argue is unrealistic.

Charging opportunities abound

Cincinnati/Northern Kentucky International airport has just installed a total of six L1 PowerPost Level 1 electric vehicle charging stations from Telefonix, a developer of cord reel technology and manufacturer of the PowerPost commercial electric vehicle charging station product line.

The PowerPost EV charging line features beneficial advantages to airports that include patented retractable cord reel technology, low energy usage and EVSE compliance with the Americans with Disabilities Act that can help airports become ADA-compliant.

“CVG strives to create a positive and efficient customer service experience for our passengers,” commented Candace McGraw, Chief Executive Officer, Cincinnati/Northern Kentucky International airport. “This is part of CVG’s commitment to sustainability and environmental stewardship.”

In consequence, the station joins other major US airports that have installed L1 PowerPost commercial electric vehicle charging facilities, which include Denver International and Greensboro International.

More outsourcing on the cards

According to The Columbus Dispatch, United was seeking to make redundant some 100 workers at Port Columbus at the beginning of October, transferring their union jobs to outside vendor Airport Terminal Services who, it is alleged, will actually offer lower contract wages.

The move has been part of a series of United lay-offs at a dozen airports in the wake of cost-cutting measures; such initiatives have been common over the last year or so, as airlines have struggled to make a profit. Other airports where United will also be outsourcing union jobs include Buffalo, New York; Detroit and Charlotte, North Carolina: it is understood that these proposals will affect 600-700 workers.

Union worker wages typically range from US$12 an hour to US$25 an hour, but reports suggest that the new incumbent will be paying around US$8.75 an hour.

“This is a trend, as air carriers continue their quest to manage costs and operate profitably,” commented David Whitaker, the Columbus Regional Airport Authority’s Vice President of Business Development.

Currently, American, US Airways and Delta Air Lines all outsource to some degree their ramp and passenger services jobs at Port Columbus, he added. The shift echoes that of Europe, where the outsourcing of ground handling labor has reached high levels.

Cancun signs up JBT AeroTech

JBT Corporation has announced that it has been awarded nearly US$6m in contracts to supply airside gate equipment for the Terminal 3 expansion at Cancun, Mexico International airport and as retro-fit components for existing gates. The orders, placed by Oversys, include Jetway passenger boarding bridges, JetAire preconditioned air units and Jetpower 400 Hz ground power devices.

Tentative agreement reached

Alaska Airlines and the Association of Flight Attendants have announced that they have reached a tentative agreement on a new five-year contract for the carrier’s 3,300 flight attendants.

Once the agreement is approved by the union’s leadership, Alaska Airlines’ flight attendants will conduct a ratification vote that is expected to be completed in December.

Under the Railway Labor Act, which governs collective bargaining agreements in the airline industry, contracts do not actually expire but become amendable instead. The previous contract became effective in 2010 and was amendable in May 2012.

Main News September 30

Collective bargaining at AA

For the first time in the carrier’s history, passenger service agents working at American Airlines have backed union representation for collective bargaining. The vote will affect about 14,500 agents who work at both American and US Airways. These workers will be represented jointly by the Communications Workers of America and the International Brotherhood of Teamsters, which represented agents at US Airways for more than a decade before its merger with American in 2013. The CWA said that in all, 9,640 agents voted for the union while another 1,547 opposed it.

The National Mediation Board has also ruled that the Allied Pilots Association, which represents pilots at American Airlines, will bargain on behalf of US Airways’ pilots in future contract negotiations, according to a spokesperson.

Federal grant for de-icing facility

The US Department of Transportation is making available over US$7.2m for a project that will see the construction of a de-icing containment facility at Gerald R Ford International.

There have been worries over the quality of water adjacent to the airport and further afield, where pollutants from the de-icing process have been detected. The new facility will be treating the diluted fluids after the de-icing operation, removing heavy metals and other contaminants, before allowing a discharge of the cleansed water to the nearby river system.

Airport administrators have said that the facility should be fully functional by October 2015.

Swallowing the tablet

American Airlines has won approval for the swapping of flight attendants’ paper manuals for electronic tablets, in a change that ought to bring with it savings totaling nearly USD$1m a year.

The move, which does not yet affect attendants at its subsidiary, US Airways, comes a year after American Airline’s cockpits abandoned paper. This is just one of various strategies that airlines have rolled out in an effort to reduce weight and save on fuel.

Already, Delta and United have distributed smart devices to their pilots, while next month Delta has plans to roll out an electronic manual for its flight attendants.

More minimum wage demands

Seattle started it. Next, Los Angeles jumped on the bandwagon. Now, a group of workers at Minneapolis-St Paul International are pinning their hopes on an hourly minimum wage of US$15. In all, over 800 staff have signed a petition asking the Metropolitan Airports Commission for an increase in salary.

The initiative becomes the latest in a nationwide effort to boost wages for the lowest-wage earners. However, earlier in the year, the Minnesota Legislature raised the minimum wage from US$6.15 an hour for large employers to US$8. By 2016, it will be US$9.50, thereafter indexed to inflation, which will start in 2018.

Needless to say, worker groups there have been flagging up the above two stations as examples of success in this wage demand.

Whether they will be as lucky as their colleagues remains to be seen: officials at Minneapolis have said that the only salaries it might be able to enhance at the airport would be those of its own employees, all of whom earn more than US$15 an hour anyhow. It would require the intervention of the state Legislature to change wages for the remainder of the workers.

In Brief

American Airlines has set October 20 as the date that American and US Airways will become one cargo organization. This transition comes ten months after the merger between the two airlines became official.

 

Main News September 12

Simply does it

Menzies’ Simplicity ground handling product has ousted the SkyWest Airlines operation with United at Denver International, with the loss of over 600 jobs. Menzies was successful in its below-the-wing bid for the carrier after the airline had revealed that the incumbent had experienced problems with on-time reliability. The win marks another step forward for Simplicity’s presence in the US.

De-icing operation now a Yingling service

Yingling Aviation recently purchased the assets of the aviation de-icing company, ICT Aviation Services, in order to enhance its service offering. Thanks to this acquisition, Yingling will now be able to furnish de-icing and anti-icing services at Wichita Mid-Continent airport. Contracts have been signed with airlines operating at the station and it is envisaged that the contracts will allow Yingling to de-ice commercial aircraft at the station whilst being on hand to provide a back-up service, as and when required. Anything up to a B767 will be accommodated and included in the sale were two de-icing rigs. The de-icing season at Mid-Continent typically runs from October to April, so this is seen as a useful adjunct to the company’s main portfolio: both Type 1 and Type 4 fluids will be available.

Study finds Atlanta is the place to be

According to a new ranking of global airports, Atlanta International has come out as the most efficient airport in the world. The report was compiled by a team of international aviation academics at the University of British Columbia’s Sauder School of Business.

In the study, the ATRS Global Airport Benchmarking Report compares the operational and management efficiency, as well as the cost competitiveness, of 200 airports and 26 airport groups around the US, Europe, Asia and Oceania.

Atlanta was followed by Douglas International in second place and Minneapolis in third in the rankings: these constituted the category with over 15m passengers per annum. For airports under the 15m passenger mark, Oklahoma came out on top; Calgary took the runner-up position, with Raleigh-Durham making third place. In Canada, Vancouver took first place, followed by Victoria and Calgary.

“Our report finds that the highly efficient airports are more likely to generate a large share of total revenues from concession and other retail activities in terminal buildings, as well as parking, office rentals and real estate development on airport lands,” commented UBC Sauder School of Business Professor Tae Oum, who led the study.

Fuel company in expansion mode

Air BP has confirmed an agreement that will see it purchase the aviation fuel business Statoil Fuel & Retail Aviation from Canadian company Alimentation Couche-Tard. The deal will add around 73 new airports in the Nordic countries and Northern Europe to Air BP’s 600-strong global fuels network. The deal, which is subject to regulatory approvals, is expected to close by the end of 2014. On completion, around 59 SFR Aviation employees, currently based in Norway, Sweden and Denmark, are expected to join Air BP.

United jobs to go at Detroit

United Airlines has said that it is preparing to lay off 109 staff at Detroit Metro airport and outsource their job functions. Those affected include 51 customer service representatives, 49 ramp workers and various other positions. The redundancies are expected to be implemented at the start of October; United announced the terminations in a notice filed with state officials.

The carrier said that the restructuring was needed so that it would have “sustainable financial success and run an efficient and reliable operation.” The notice did not identify the new vendor or specify whether the workers would be able to find re-employment.

Passport kiosk initiative

Delta Air Lines has unveiled ten new passport kiosks at Los Angeles International to enhance its customers’ level of convenience. The kiosks are located at Terminal 5, which is currently undergoing a US$229m renovation.

Delta thus becomes the first carrier to offer kiosks at this station: its competitors, such as American Airlines and United Airlines, have delayed installation at their respective terminals because of the ongoing airport renovation work.

The new kiosks are part the company’s plan to reduce waiting times for those requiring passport and customs clearance.

Main News August 29

New lounge for Dallas?

Dallas/Fort Worth has been looking into the possibility of adding a premium travel lounge for international travelers at its Terminal D. To that end it is considering a study into the viability of the subject. The consultants will also look at other international customer lounge offerings at global airports with a view to evaluating possible partners to run a premium lounge at this airport.

The idea has been prompted by the arrival of new carriers from the Persian Gulf and Australia, along with new flights to Asia. Added to this is the fact that the airport is now serving more international First Class and Business customers. Those numbers are expected to grow as Qantas and Emirates look to add the A380 to their routes later this year.

Since the airport’s current lounges are close to capacity and do not have the same amenities available at other international airports, the time seems propitious for the concept.

Global still performing well

Revenues increased at Global Ground Support by 1% compared to the first quarter of the previous fiscal year. Global posted an operating loss of approximately US$180,000 for the quarter, compared to US$6,000 in the comparable period for 2013. Inefficiencies in production caused by an unexpected shipment delay, severance expenses, bad debt expenses and increased depreciation expenses were put forward as explantions for the performance. Order flow, though, remained above last year’s levels, with a backlog (as at June 30) of US$21.8m.

Post-merger clarification

The International Association of Machinists and Aerospace Workers and Transport Workers Union have petitioned the National Mediation Board for confirmation that in the wake of the merger between American Airlines and US Airways, the companies are now operating as a single transportation system in terms of the employees in the Mechanic and Related, Fleet Service and Stores classifications.
The filing is necessary before a National Mediation Board election to certify the TWU-IAM Employee Association (an alliance between the IAM and TWU formed last year), as the collective bargaining representative for all employees in the affected classifications at the new airline.

Sea-Tac: light at the end of the tunnel

The hourly minimum wage for airfield workers at Seattle-Tacoma International will be increased to US$11.22 in January next year. This will be enhanced to US$13 an hour by January 2017, according to a final vote by the Port of Seattle Commission.

Readers will know that Seattle has been the focus of media attention for some months now in the wake of demands for higher wages at the airport. This agreed increase will affect some 3,500 contract workers at the airport, and will include those who handle cargo and baggage. Check-in staff and PRM providers, as well as those involved in catering, cleaning and maintenance, along with refuelers and dispatchers and security personnel, all fall under this umbrella.

Following the new policy, a worker’s total minimum hourly compensation, which includes tips, healthcare and sundry other benefits, will total US$13.72 by January 2015. These workers will also be entitled to paid leave at the rate of one hour for every 40 hours worked.

In round terms, the minimum compensation will swell to US$15.50 by the beginning of 2017, thereafter increasing on an annual basis in line with the prevailing rate of inflation.

However, it should be noted that both restaurant and retail workers are not covered by this wage deal. The reason has been that the bulk of these staff belong to unions and are already considered to be on an adequate wage. However, these two sectors are likely to be reviewed later in the year when the airport’s Master Plan is studied. This is good news indeed for many staff at Sea-Tac but the actual total falls far short of the much-debated US$15 minimum wage that hit the news headlines.

BBA records good growth

Aircraft services provider BBA Aviation has reported a 3% rise in first-half revenues. This has been down to an upsurge within the US aviation industry, which has driven demand for its flight-support services.

BBA’s underlying pre-tax profit rose to US$79.2m in the six months ended June 30 from US$78.4m a year earlier.

Revenues rose to US$1.15bn from US$1.11bn a year earlier. Revenues in its flight-support services unit, which is its largest entity, rose by 12% to reach US$775.5m.

German group opens up in the US

At the start of August the Fraport Group expanded its international portfolio in the global airport market by acquiring 100% of US-based AMU Holdings, which owns Airmall USA Holdings (Airmall). One of the leading airport concessions developers in North America, Airmall markets space at the aviation hubs of Baltimore, Boston, Cleveland and Pittsburgh. Together, these four hubs serve a total of about 70m passengers per year. Airmall currently oversees about 34,000 square meters (around 366,000 square feet) of space in the passenger terminals at the four airports, with about 270 retail and food and beverage outlets operated by international, national, regional and local tenants.

Fraport’s Executive Board Chairman, Dr Stefan Schulte, welcomed the acquisition. “The retailing business at our Frankfurt homebase has always been a growth engine and we have repeated this success story consistently over the years at our other Group airports worldwide. With the acquisition of Airmall, we have established a promising platform for developing our US business in the future.”

Main News August 15

Under the Weather…

India is again proving a tough testing ground for foreign handlers.

The latest attempt by Universal Weather & Aviation to handle there has been unsuccessful, even though it tried to form a joint venture company in India in order to offer its own ground handling services. The irony is that this Houston-based company is no stranger to the Indian continent, having provided trip support for the past decade; moreover, its agents have acted in supervisory rôles for the local handlers that it uses.

According to the Indian government, a hundred percent foreign equity is not allowed when it comes to ground handling providers. The JV was applied for some 12 months back and only now has the company been notified that the application has been denied; employees of the joint venture (which is known as Universal Aero Flight Services India Private) will not therefore be granted ramp access.

Jetbridges and power for Wichita

JBT AeroTech has been awarded a contract exceeding US$8m to supply gate equipment for the Wichita Mid-Continent airport. The order, placed by the Wichita Airport Authority, includes glass-sided Jetway passenger boarding bridges, JetAire preconditioned air units and Jetpower 400 Hz ground power units. As such, it represents one of the largest orders for glass-walled boarding bridges in the US.

Collective agreement ratified

At the end of July, Servisair and Teamsters Local 419 finally ratified a collective agreement for members working at Toronto Pearson International airport. The new collective agreement will assure a continuation of service for both the traveling public and commercial cargo operations.

The agreement was reached with some assistance from the Labour Program’s Federal Mediation and Conciliation Service: this provides dispute resolution and dispute prevention assistance to trade unions and employers under the Canada Labour Code.

Cherry ripe…

Were you aware that Sea-Tac’s key export is the humble cherry?

This year has been exceptional in terms of the crop yield, with experts saying that it is the second best year ever. That, in turn, has created many opportunities for extra cargo flights. Eight cargo airlines that use freighters have carried cherries this summer out of Seattle, in addition to the conventional belly cargo carriers.

Amongst the carriers that have added capacity are EVA, Asiana, China Eastern, China Airlines, Korean Air and Nippon Cargo: all have all added extra flights or charters.

At the time of writing about 22m, 20 pound boxes of cherries had been filled – with more to come.

Delta shifts stance on fuel supply

Delta Air Lines has cancelled a multi-year contract with BP with a view to exchanging refined fuels from Delta’s Trainer refinery for more jet fuel. This comes in the wake of a product exchange contract between Delta’s subsidiary Monroe Energy and BP, which was terminated at the start of July.

Delta has said that it has replaced BP with another, as yet unnamed, party. The airline added that the termination was early, but it did not say when the contract had been due to expire.

When Delta bought the 166,000 barrel per day Philadelphia refinery in mid-2012, it struck several agreements to supply crude and buy its refined products, thereby reducing its need to trade directly in the oil market. One of those was a multi-year agreement with BP, which was to buy some of the refinery’s non-jet fuel products, such as gasoline and diesel, and sell jet fuel back to Delta. It struck a similar deal with Phillips 66 to swap Trainer’s refined products for more jet fuel.

The SEC filing made no mention of another agreement from 2012, that of a three-year deal under which BP was to supply crude oil to the refinery.

Extension to screening program agreed

US Customs and Border Protection recently extended its Air Cargo Advance Screening pilot program for a further year, following representations from freight forwarding representatives. It has also reopened the application period for new participants.
In fact, the pilot scheme was set to expire in July but will now be extended until 26 July 2015.
The program, which analyzes advance data on inbound air shipments to the US in order to assess the level of risk, is currently in its pilot phase, although US Customs and Border Protection has indicated that over time it intends to expand it to apply to all inbound air cargo.

 

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.

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