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US airline labour flexes its muscles...Article

Sedona16

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Maybe not the perfect storm to take it back (need profitits and less sell outs in the industry to to that) but maybe a chance with the new administration to force the issue better than in the last eight years?

http://www.flightglobal.com/articles/2008/11/25/319326/us-airline-labour-flexes-its-muscles.html

Heartened by the presidential victory of Democrat Barack Obama, US airline labour is flexing its muscle as it prepares to recoup its concessions of recent years. At American Airlines, flight attendants have threatened to strike when they are legally allowed, and the airline’s pilots have pressed repeatedly for a federal declaration that their negotiations are at an impasse. And labour at normally placid Southwest Airlines has begun picketing.

William Swelbar of the MIT airline programme says: “Never before have we seen such a convergence of ‘amendable’ dates. Because so many of the present contracts were negotiated during bankruptcy, we have many contracts coming up in a close period.” This means that unions would be able to leverage their negotiations on progress at other carriers.

At American, the Association of Professional Flight Attendants marked the fifteenth anniversary of its five-day strike against the carrier by noting it was ready to strike again, when it legally could, to regain its 2003 concessions. The Allied Pilots Association representing pilots at the carrier, claiming that negotiations are stalled, says it is time to make up for their 2003 givebacks. American responds only that airline negotiations are normally lengthy and it hopes for an equitable settlement.

Meanwhile at normally content Southwest, the Southwest Airlines Pilots Association joined the Transport Workers Union Local 555 in picketing over the pace of negotiations. Chairman Carl Kuwitzky added that the carrier’s recently signed codeshare with Mexican carrier Volaris was a “problematic...codeshare [that] has the potential to severely affect the career of all pilots on our seniority list”.

At another relatively prosperous carrier, JetBlue, moves have begun to unionise the carrier’s 2,200 pilots after the JetBlue Pilots Association filed a petition with the National Mediation Board - although it adds they “have complete faith in our current company leadership”.

FTN Midwest Securities analyst Michael Derchin sees Obama as likely to appoint a pro-labour member to the National Mediation Board, which governs airline labour. This would mean that “current negotiations are likely to move more quickly”, he says.

And at long-troubled United Airlines, a federal judge has ordered ALPA member pilots to end a slow-down or sickout, while the union continues its demand that the carrier’s top managers resign. The union denies that it encouraged any job actions by its members.
 

Sedona16

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Another positive note althought this could change quickly. Remember it takes profits to get handsome raises. Wouldnt it be interesting if next year the airlines made more money ($9.2 Billlion vs $8 Billion) than was made in the booming years of 1997 and 1998 for those of you who remember "the good old days".

One of the more reasoned bullish forecasts comes from JP Morgan's Jamie Baker. In mid-November, Baker was forecasting a 2% decline in total industry revenues, including ancillary fees.

But he now says: "The industry has realised $25 billion in annual fuel savings. It would take a 20% decline in revenues to negate the benefit, roughly three times worse than what was witnessed in 2002." So Baker's 2009 industry operating profit forecast moves from $6.4 billion to $9.2 billion, eclipsing 1997 and 1998's $8 billion record profit.

He says the network carriers' cost disadvantage compared to low-cost players is more or less erased. "As for Southwest, its competitive advantage has narrowed as it fuel advantage reverses, the company is shrinking for the first time in history and they may seek additional liquidity."
 
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SpauldingSmails

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Airline labor flexes muscles... airline management flexes sphincter.
 

CFIT

Gimme your money
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I think most legacy airlines would be wise to simply extend their current contract for at least 2 years.

The economy is still going to dictate a lousy contract if done now.
 

Quack

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ALPA has muscles?
 

Sedona16

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ALPA has muscles?

Ha Ha all you guys who think the airline world would be a better place without those pesky unions. Its completely moronic to think things would be better without representation.
 

AA717driver

A simpler time...
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The three groups prominently mentioned aren't ALPA...TC
 

Tweaker

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Proper ALPA Slogan Circa 1978-2???

"Takin' it... in the crack!"

I hereby copyright that, ya'll are on notice.
 
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