Monthly Archives: September 2011

US Airways/USAPA Injunction Update: Union Issues Notice To Pilots

As per U.S. District Court Judge Conrad’s order that was issued earlier this week, the US Airlines Pilots Association (USAPA), which represents the pilots at US Airways, posted the following letter to its members on its website today.

Funny thing is — it is not posted on the public part of the site. You have to use a member user name and password to access it behind the firewall, or be on the union’s email list. Or, as in my case, have a copy forwarded to me by an American Airlines’ pilot.

Interestingly, the last publicly posted piece on the union’s website is an article dated May 25, 2011, headlined, “US Airways Pilots Protest Slow Pace of Contract Talks.”

Methinks there has been one heck of a lot of news that has involved the union since then. Perhaps a news update might be in order.

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USAPA Update on Injunction Order

In compliance with Section IV of Judge Conrad’s ruling in the United States District Court, Western District of North Carolina, USAPA is distributing the following notice to all US Airways pilots by the most expeditious means possible. USAPA will provide more information as soon as it becomes available. Thank you for your prompt and thorough review of the following:

NOTICE TO ALL US AIRWAYS PILOTS

In July 2011, US Airways filed a complaint against USAPA alleging USAPA had violated and was violating the Railway Labor Act (“RLA”) by, among other things, engaging in a concerted effort to interfere with US Airways’ airline operations, including but not limited to a slowdown, work stoppage, strike, sick-out, work to rule campaign, and other concerted refusals to perform normal pilot operations. At the time it filed the complaint, US Airways sought a preliminary injunction to prevent USAPA from engaging in the acts and conduct alleged in the complaint. After a full evidentiary hearing conducted on August 19 and 22, 2011, by decision and order dated September 28, 2011, the Court found there was evidence sufficient to meet the legal burden that USAPA had engaged in actions that violated the RLA.

The September 28, 2011 order specifically enjoins USAPA and its members, agents, and employees, and any persons and organizations acting in concert with, through, or under it, or by and through its order, from violating the status quo provisions of the Railway Labor Act and from permitting, instigating, authorizing, encouraging, participating in, approving, or continuing any interference with Plaintiff’s airline operations, including, but not limited to, any slowdown, strike, work stoppage, sick-out, work to rule campaign, or any concerted refusal to perform normal pilot operations in violation of the RLA. This order continues in effect unless and until modified by the Court.

All US Airways pilots are instructed to fully perform their normal working schedules and practices.

All US Airways pilots who are engaging in a concerted refusal to perform normal pilot operations are directed to cease and desist from any concerted refusal to perform normal pilot operations, by engaging in acts including but not limited to slow taxiing, writing up all maintenance items, calling in fatigued, delaying flights, refusing to answer a call from the scheduling, refusing to fly an aircraft that meets the requirements for flight, or refusing to accept voluntary or overtime flying, and to cease and desist all exhortations or communications encouraging same.

USAPA will take all steps and measures to comply with the letter and spirit of the Court’s order and instructs and directs all US Airways pilots to do the same. Any and all acts and conduct in violation of this Order may subject individuals and those acting in concert with them to punishment under the contempt powers of the Court.

A copy of the order issued by the Court is shown below.

US AIRLINE PILOTS ASSOCIATION

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ORDER ISSUED BY THE COURT

September 28, 2011

The Court . . . HEREBY ORDERS:

1. USAPA and its members, agents, and employees, and all persons and organizations acting by, in concert with, through, or under it, or by and through its order, are enjoined from permitting, instigating, authorizing, encouraging, participating in, approving, or continuing any interference with Plaintiff’s airline operations, including, but not limited to, any slowdown, strike, work stoppage, sick-out, work to rule campaign, or any concerted refusal to perform normal pilot operations in violation of the RLA, pending a hearing on the permanent injunction.

2. USAPA shall take all reasonable steps within its power to prevent the aforesaid actions and to refrain from continuing the aforesaid actions if commenced, including, but not limited to, the following:

a. Instructing all pilots represented by USAPA and employed by Plaintiff to resume their normal working schedule and practices and providing Plaintiff a copy of all such instructions;

b. Notifying all pilots represented by USAPA and employed by Plaintiff, by the most expeditious means possible, of the issuance, contents, and meaning of this Preliminary Injunction and providing Plaintiff a copy of all such notices;

c. Including in such notice a directive from USAPA to US Airways’s pilots who are engaging in a concerted refusal to perform normal pilot operations, including but not limited to, slow taxiing, writing up all maintenance items, calling in fatigued, delaying flights, refusing to answer a call from the scheduling, refusing to fly an aircraft that meets the requirements for flight, or refusing to accept voluntary or overtime flying, to cease and desist all such activity and to cease and desist all exhortations or communications encouraging same.

d. Posting the notice described above on Defendant USAPA’s internet websites and providing Plaintiff a copy of the notices;

e. Including the contents of such notice on any and all recorded telephone hotlines under control of USAPA, until such time as the Court has acted on Plaintiff’s Motion for a Permanent Injunction, and providing Plaintiff a copy of all such messages; and

f. Distributing the contents of such notice through all non-public communication systems maintained by USAPA, including any telephone trees, text message lists, pilot-to-pilot communication systems, or similar systems, and providing Plaintiff a copy of the notices.

3. USAPA is prohibited from including in such notices (or distributing contemporaneously with such notices) any statements that are intended or could reasonably be interpreted to mean that pilots should continue to engage in the previously-described conduct notwithstanding the Preliminary Injunction.

4. USAPA shall report to the Court by 5 p.m. on October 4, 2011, by sworn affidavit, the methods used to effect the notice described above to all USAPA-represented pilots, and furnish to the Court copies of all notices required to be furnished to the Plaintiff under the Court’s Order.

US District Court Grants US Airways Preliminary Injunction Against Pilot Union

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It took a little longer than some people had anticipated, but this afternoon U.S. District Court Judge Robert Conrad granted US Airways a preliminary injunction against the airline’s pilot union, US Airlines Pilot Association (USAPA).

As you may recall, US Airways sought the injunction in August, when it claimed that the pilot union had been involved in actions to deliberately slow down and/or disrupt the airline’s operations.

Judge Conrad apparently agrees.

In his ruling, USAPA and its members are now prevented from “permitting, instigating, authorizing, encouraging, participating in, approving, or continuing any interference with Plaintiff’s airline operations, including, but not limited to, any slowdown, strike, work stoppage, sick-out, work to rule campaign, or any concerted refusal toperform normal pilot operations in violation of the RLA, pending a hearing on the permanent injunction.”

Conrad instructed the organization very clearly as to how and what they now need to communicate to its members.

USAPA was ordered to report to court no later than 5 p.m., on Oct. 4, what methods it has used to comply with the court order.

For those of you who are legal eagles like I am, click here for a .pdf of the complete TRO document.

I think you will agree that Conrad has read the union the proverbial “riot act.” Not a whole lot of positives in this order for the union. Not surprisingly, however, given how strong the airline’s initial complaint was, as we noted last month in PlaneBusiness Banter.

PlaneBusiness Banter Now Posted!

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This week’s issue of PlaneBusiness Banter is now posted. We are all over the place this week as first, I tell you what you missed at The BeatLive Conference last week. The conference usually attracts an assortment of corporate travel heavyweights. This year was no exception.

Then of course we have to talk a bit about that certain airplane that was finally delivered to its new owners in Everett, WA on Monday. You know. The one that was just a tad late and, apparently, a tad overweight.

Yes, Boeing finally delivered its first 787 to All Nippon Airways (ANA) on Monday.

We also have lots of union labor news to talk about. How many American Airlines’ pilots are now expected to retire on Oct. 1? We hear the number could be almost four times as many who retired at the beginning of September.

American Airlines was also in the news last week as Moody’s lowered its outlook on the airline’s debt to “negative.” Tuesday, the airline announced an EETC debt refinancing deal. We let you know what JP Morgan analyst Mark Streeter thinks of the debt deal.

One thing’s for sure. The airline is certainly paying more than it did back in January for the deal. Yield on this one is in the 8% range. In January the airline did a financing deal at about 5.25%. That’s what rumors of bankruptcy, impending debt bills, and a continued inability to make a profit and throw off cash does.

Meanwhile, pilots from both Continental and United Airlines picketed on Wall Street Tuesday.

We update you on the status of the pilot negotiations at United, in addition we wonder why it is that pilots think Wall Street analysts really care if they picket outside the NYSE. And why it’s really a bad idea — both for United and for the industry as a whole.

Speaking of Wall Street, airline stocks did not have a good week last week. Neither did Wall Street. We give you our take on the latest economic tea leaf reads and tell you why this Thursday is a very important day for the eurozone — and US financial markets as well.

One good side effect of continued eurozone anxiety – both crude oil and jet fuel posted large declines for the week. That is very good news for airlines.

Lots of reader mail this week — from baseball to airlines to comments on our column from last week.

All this and more — in this week’s issue of PlaneBusiness Banter .

PlaneBusiness Banter Now Posted!

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Hello everyone. Just a short note this week to let you know that this week’s issue of PlaneBusiness Banter is now posted.

PBB is posted a bit earlier than usual this week, as yours truly is headed out to Las Vegas in a couple of hours, where I will attend The BeatLive Conference.

This will mark the fourth year I’ve attended this corporate travel get-together of industry heavyweights, and I look forward once again to getting my corporate travel gossip fix for the year.

Jay Campbell, the founder of The Beat, has challenged all attendees of the conference to join him in a SkyJump off the Stratosphere. (You freefall from 108 stories up.) Think I should do it? I’ll keep you posted.

This week we’re talking more about the great third quarter guidance we keep hearing from all the US airlines (although one major airline will still post a loss…guess who?) and of course we’re talking about Boeing’s 747-8 launch debacle involving Cargolux. What a mess that is.

In other news, we also break down the second quarter earnings news from Virgin America, which was released Friday by the airline. (As Virgin is not publicly traded, they report their numbers to the DOT and they are not released until much later than the rest of the sector.)

You know what they say about companies that issue press releases on Friday. That’s right. It’s usually an indication they’d prefer the information was somewhat ignored.

Looking at the numbers posted by Virgin, I can understand why.

How did they stack up compared to the recent second quarter results posted by the rest of the North American airline group? We’ll fill you in.

Meanwhile it sounds like the mothership of the Virgin empire, Virgin Atlantic is set to announce an alliance hook-up. If it’s not Star, I’ll be very, very, very, surprised.

We’ve got the latest on jet fuel, and more importantly we tell you how well the US airline sector fared on Wall Street last week — after all those bullish comments the various airline execs made at the Deutsche Bank Transportation Conference.

Oh, and Shoshana Hebshi? We talk about her experience flying on 9/11 as well. If you have not read her blog post in which she details what happened to her — including being strip-searched — after being taken off a Frontier Airlines flight in handcuffs on September 11, it’s a must read.

Fear. It’s not a good thing.

Meanwhile, in our column this week, I give props to the current crop of airline CEOs. You know why? They deserve it. I’ll tell you why it’s a good thing the industry now appears to be led by a group of adults rather than a bunch of flamboyant “characters.”

All this and more in this week’s issue of PlaneBusiness Banter.

On that note, I don’t want to miss my flight to Vegas. Gotta go. Talk to you guys later!

PlaneBusiness Banter Now Posted!

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Hello everyone. We’re back from our August hiatus. Perfect timing too, as today airline execs took their turns talking to investors at the Deutsche Bank Aviation Conference. And what did most of them say? Demand has not slowed.

In addition, remember that the airlines were the beneficiary of that nice FAA tax collection snafu in August, which fattened their bank accounts with a little unexpected spending money. Tuesday a number of airlines gave more precise guidance as to just how much their bank balances were fattened, as a result of Congress being unable to act like adults.

All of this positive news caused the markets to reward the flailing airline sector with a huge turnaround today.

The depth and strength of airline exec comments today really did seem to be in direct opposition to how we, and everyone else on the planet, perceive the macro economic landscape. I was surprised at some of the PRASM estimates for September that were floated today. Much better than I had anticipated.

This week is also “catch-up” week as we update subscribers on what went down with the Southwest Airlines/AirTran pilot seniority list integration proposal in August. Essentially the AirTran ALPA MEC refused to send the proposal to the AirTran pilot rank and file for a vote.

As of now, both sides are supposedly “talking” but there is already a “drop-dead” date established with the negotiations. If nothing is resolved by that date — the matter will be arbitrated.

We also talk this week about the situation at American Airlines. The airline had 111 pilots opt for retirement on Sept. 1. This is an abnormally high number, (the average monthly total is 11) and it appears the airline may have a similar number, if not more, opt to retire the beginning of October.

We talk about whether this is an “insider sentiment” that indicates the pilot group believes a bankruptcy is around the corner — or if it is simply a reflection of the sharp downturn in the value of AMR shares over the last quarter. (There is a look-back period in terms of what date and stock price is used in calculating benefits.)

Of course, we talk about how the airline sector performed both last week and while we were on vacation. We also go over the July DOT Air Travel Consumer report.

Then there is the usual hodge podge of goodies including an update on Stelios and his latest attack on the EasyJet board of directors, Moody’s cut in Travelport’s debt rating, the update in the case between American and Sabre, the skinny on the person who bit the Alaska Airlines first officer, and much, much more.

Subscribers can access this week’s issue of PlaneBusiness Banter here.

In Memoriam: September 11, 2001

While the world paused today to commemorate the events that happened September 11, 2001, we — as we have since that awful day — prefer to focus on our departed airline family members. Those crew members who went to work on what was a beautiful day — but never came home.

Yes, there were thousands of people who lost their lives that day. But for those of us who follow this industry, work in this industry, or simply continue to be fascinated by its endearing dysfunctionality, the loss of four airline crews that day hit us hard. And it still hurts.

This is our corner of the world. And as I see it, the courage and bravery of these crewmembers deserve our heartfelt acknowledgment. And remembrance.

American Airlines Flight 11, Boston to Los Angeles, crashed into the World Trade Center.

CREW: John Ogonowski, Dracut, Mass., Captain; Thomas McGuinness, Portsmouth, N.H., First Officer; Barbara Arestegui, flight attendant; Jeffrey Collman, flight attendant; Sara Low, flight attendant; Karen Martin, flight attendant; Kathleen Nicosia, flight attendant; Betty Ong, flight attendant; Jean Roger, flight attendant; Dianne Snyder, flight attendant; Madeline Sweeney, flight attendant.

United Airlines Flight 175, Boston to Los Angeles, crashed into the World Trade Center.

CREW: Victor J. Saracini, Lower Makefield Township, Pa., Captain; Michael Horrocks, First Officer; Amy Jarret, flight attendant; Al Marchand, flight attendant; Amy King, flight attendant; Kathryn Laborie, flight attendant; Michael Tarrou, flight attendant; Alicia Titus, flight attendant.

American Airlines Flight 77, Washington to Los Angeles, crashed into the Pentagon.

CREW: Charles Burlingame, Captain; David Charlebois, First Officer; Michele Heidenberger, flight attendant; Jennifer Lewis, flight attendant; Kenneth Lewis, flight attendant; and Renee May, flight attendant.

United Airlines Flight 93, Newark, N.J., to San Francisco, crashed in Shanksville, Pa.

CREW: Jason Dahl, Colorado, Captain; Leroy Homer, Marlton, N.J., First Officer; Sandy Bradshaw, flight attendant; CeeCee Lyles, flight attendant; Lorraine Bay, flight attendant; Wanda Green, flight attendant; Deborah Welsh, flight attendant.

May they all be at peace in a much better place.

I’d Rather Not Remember

Honestly? I don’t want to remember 9.11.01.

I don’t want to listen to the audio of American Airlines flight attendant Betty Ong — knowing what I know now.

I don’t want to watch videos of children who lost parents when the WTC collapsed.

I don’t want to listen to the CEO of Cantor Fitzgerald talk about that day and how he lost 658 employees — including his own brother. I knew people who worked there. Friends.

I don’t want to look at the photograph of NYFD Chaplain Mychal Judge again, as he was carried from the North Tower — already dead — and feel the same emotions I felt when I first saw the image.

I also don’t want to remember how much I miss Peter Jennings either.

Please wake me up on Monday.

Weeeee’re Baaaack

Figures. I return from vacation, start up the combines, drag out the harvesters, and look what happens to the blog. Actually the blog was screwball when I walked in here this morning. I’m not sure what the deal is, but it must be a Movable Type issue, as I have not been in here since 8.24.11. I am completely and totally not to blame.

Yep. That’s my story and I’m sticking with it.

We’re off to see if we can figure out what the problem is here. Actually what that really means is I am going to send an email to the one person I know who can tell me what is wrong, and hopefully fix it. Me, myself? No, I am not capable of figuring out such tedious nonsense.

In the meantime, I’m off to peruse the feedback from today’s Dahlman Rose Global Transport Conference in New York.

Talk to you later.