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Aviation Industry Updates: July 11, 2023

James Onieal : Jul 11, 2023 7:13:32 AM

Industry News Export

American Pilots To Vote On New Contract With 41.5% In Pay Raises

KEY POINTS:

Pilots at Fort Worth-based American Airlines are set to vote on a new contract this month with terms that push for wages to be increased by more than 20% this year in addition to the raises indicated in 2020 and future raises. The union representing the pilots, Allied Pilots Association (APA), said the pilots will vote towards the end of the month.
In terms of profit sharing, the new deal would align closer to the contract that pilots at Atlanta-based Delta Air Lines agreed to. With the increase proposed in the agreement for this year and future increases, American pilots could see a raise by more than 40% in the next four years.
Pilots’ wages will rise by about 21% for the remainder of this year if the deal goes into effect. 2024 pay rates would increase by 5%, and pilots would receive a 17% 401(k) contribution, according to The Dallas Morning News. In the following year and 2026, wages would increase by 4%, while the contribution would grow to 18% in 2026. During the final year that the contract would be effective, pilots would see a 3% increase. Collectively, wages would experience a 41.5% raise by 2027.

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Analysis: Will Abandoning American Help JetBlue's Spirit Merger?

KEY POINTS:

JetBlue Airways' (JBLU.O) decision to abandon its alliance with American Airlines (AAL.O) has improved its chances in the trial over a $3.8 billion deal to buy Spirit Airlines (SAVE.N), but may not be enough to hand it a victory, antitrust experts said.
In its lawsuit filed in March aimed at stopping JetBlue's purchase of Spirit, the U.S. Justice Department (DOJ) cited as evidence JetBlue's alliance with American at airports in New York and Boston several times.
Calling the partnership a "de facto merger," the DOJ argued that JetBlue's proposed purchase of Spirit, a Florida-based ultra-low cost carrier, would lead to further industry concentration.
On Wednesday, JetBlue CEO Robin Hayes said ending the partnership with American has taken the DOJ's "misplaced" concerns off the table and would help when the Spirit case goes to trial in October.
Eleanor Fox, an antitrust professor at New York University School of Law, said JetBlue would have found it even harder to win the Spirit trial by being in alliance with American because it had made the carrier a bigger player in certain markets.

Reuters

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UPS Pilots Prepared To Support UPS Teamsters Strike Action

KEY POINTS:

After more than two months of negotiations, UPS and Teamsters — the union representing more than 340,000 of the company's workers — were unable to reach a consensus on a new four-year labor contract, ending talks early Wednesday morning.
At this time, no additional negotiations are scheduled.
The company said the union walked away from negotiations.
"We have nearly a month left to negotiate. We have not walked away, and the union has a responsibility to remain at the table," said Jim Mayer, a UPS spokesperson in a statement.
But the union said UPS is the one who walked away, regardless of who walked away, the Teamsters sit ready to strike Aug. 1.
UPS pilots are prepared to support a UPS Teamsters strike action, the union representing more than 3,330 pilots says

Courier Journal

NetJets Pilot Union Files Grievance, Cites Training Standards

KEY POINTS:

The NetJets Association of Shared Aircraft Pilots (NJASAP), the union representing NetJets pilots, has filed a class action grievance alleging the private jet company’s training program is not up to par.
Representing roughly 3,000 pilots who fly for NetJets Aviation Inc., the pilot union alleged that the company is “failing to provide adequate and standardized training across all segments of the pilot group from its newly hired pilots who are completing initial aircraft training to crewmembers who have been on [the] property for decades and are completing new aircraft transition training.”
FLYING reached out to NetJets for comment. The law firm representing the company clarified that the grievance is not an official lawsuit. “The only proceeding NJASAP has initiated against NetJets on this subject is a grievance under a collective bargaining agreement,” the letter stated.
According to NJASAP president Capt. Pedro Leroux, one of the paramount concerns is the lack of experience from instructors who are new and have little to no knowledge of NetJets’ standard operating procedures and aircraft. Additionally, the instructor-to-pilot ratio is too high for a conducive learning environment. Leroux also stated that many pilots were seeking outside resources to compensate for the shortcomings in their instruction.

Flying Mag

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