Sky Talk

New AA jets contingent on pilot contract

(Boeing Co. photo)

Deep in the press release about its plans to buy up to 100 shiny new Boeing 787 jets by 2020, American mentions that the deal could be squelched "if it has not reached a satisfactory agreement with its pilots union to operate the aircraft."

I asked Kevin Cornwell, a spokesman for the Allied Pilots Association, if that gave the union more leverage at the bargaining table as the union negotiates a new contract.

"I don't know if it gives us more leverage this instant," he said, "but things like this do tend to weigh in our favor." More than anything, he said, "it shows that sooner or later they're going to have to sit down and deal with us."

The union has complained for months about the slow pace of talks, accusing the airline of deliberately stalling.

I also interviewed Tom Horton, AMR's chief financial officer, who told me he's confident a deal can be reached by March of 2011, which is when the airline must notify Boeing of its September 2012 delivery date for the first planes.

"This is a deal that's good for all of our constituencies," he said, including pilots.

The APA has not done much cooperating with American in recent years on any issue. The proposed D/FW-to-Beijing flight fell apart when the airline couldn't ink a deal with pilots to fly the route, and more recently, the union has opposed American's plan for an alliance with British Airways.

Still, pilots like new planes, so the union clearly has an incentive to work with the airline to make sure the jets arrive.

- Trebor Banstetter

'We will not negotiate against ourselves'

We tried to get a comment from the Allied Pilots Association Monday for our story in this morning's Star-Telegram about labor negotiations at American Airlines. The union's offices were closed because of the holiday, but I had the opportunity to talk this afternoon with AA captain and union spokesman Kevin Cornwell.

Cornwell takes umbrage at comments from Jeff Brundage, who heads human resources for AA, that talks aren't anywhere near an impasse. Despite a mediator taking over the talks in May, Cornwell said, "there has been absolutely no movement for months."

Cornwell said the company has not offered counter-proposals on major issues like pay, and its only proposals, on issues like scope and medical benefits, "are actually a step backward from what we have now." He also noted that there have been about one week of meetings per month, despite union requests for more negotiations sessions.

Pilots believe the company simply isn't interested in serious negotiations. "They know this contract is probably going to cost them some money, so they don't particularly want to move on it," he said.

"But the company needs to understand that we will not negotiate against ourselves," he added. "At some point, when we've gone as far as we can, we'll be asking for a release."

A release from negotiations would trigger a 30-day cooling off period, after which the company can impose a contract, and the union can strike.

- Trebor Banstetter

More on AA safety plan elimination

We blogged yesterday about the expiration of ASAP, the lauded American Airlines safety program for pilots. Here's a blast from union officials who represent St. Louis-based pilots with their take on why the program failed to be renewed.

- Trebor Banstetter

AA safety program expires

As expected, the ASAP program for pilots at American Airlines expired on Sunday after the union and the airline failed to renegotiate the program. We've blogged a lot in the past on this, there's more information on the program and the dispute here.

- Trebor Banstetter

AA attendants picket at D/FW

A small group of American Airlines flight attendants demonstrated at D/FW Airport today, hoping to spur passengers to visit their PaxForPax Internet site. We've got a story here on the protest at Star-Telegram.com.

- Trebor Banstetter

Back to the blog

I had a day off yesterday, but I'm back to Sky Talk today. Here are a few things I would have posted had I been around:

• American flight attendants plan to demonstrate at four airports, including D/FW, this Friday to protest the "growing challenges of air travel for passengers and the poor working condition for flight attendants." Attendants will pass out travel pillows to passengers with the address of their new Internet site, www.paxforpax.com.
• A new Travelocity poll suggests that the current economic concerns will have an impact on travel for the holidays. The firm said 66 percent of respondents reported that concerns about the economy will affect their holiday travel plans. Still, 78 percent plan to travel for at least one of the upcoming holidays.
• Falling oil prices could insulate airlines from a recession, according to some analysts. Jamie Baker of J.P. Morgan said airlines could make money next year even amid a steep recession if fuel prices remain lower than earlier peaks and airlines continue to keep a right rein on capacity.

- Trebor Banstetter

AA pilots make final safety program proposal

We've blogged about the standoff between American Airlines and its pilots' union on the lauded ASAP program, which allows pilots to report safety incidents without fear of damaging their employment or careers. The union submitted what it describes as its final proposal on the issue, and says the "fate of the ASAP program clearly lies with management."

The union wants the program to exclude the possibility of discipline for safety incidents that are reported by others, such as ramp workers or tower personnel, in addition to the pilot if the case is accepted under ASAP. American has countered that there is no reason to change the plan and only a tiny handful of cases fall under those circumstances.

If the two sides can't come to an agreement, the program will come to an end Oct. 12.

- Trebor Banstetter

AA pilots 'frustrated' with mediators

The Allied Pilots Association hasn't been shy in recent years about criticizing American Airlines management. But an email sent to members Wednesday marked the first time I can recall that the union has taken a shot at the National Mediation Board, which is overseeing contract talks between the airline and pilots.

Here's what the APA had to say in its negotiations update:

APA and management did not meet this week for Section 5 negotiations due to the unavailability of mediator Mike Tosi. AMR management refuses to meet for any bargaining sessions without the presence of the mediator.

The APA leadership is growing increasingly frustrated by the National Mediation Board’s apparent reluctance or inability to provide mediation services in accordance with its statutory obligation, even as talks with management approach the point of impasse.

- Trebor Banstetter

More AA contract proposals for ground workers

American Airlines has offered contract proposals to two more ground worker groups - simulator techs and ground school instructors - represented by the Transport Workers Union. The proposals are similar to offers that American has made to other TWU groups, including aircraft mechanics.

The proposals for the two- and a half-year contracts include a 5 percent lump sum bonus up front and a 3.5 percent bonus after 12 months, increased holiday hours and work rates, and some work rule modifications that would boost productivity.

American had previously offered "all-or-nothing" contracts to the seven groups represented by the TWU, which were rejected. This time around, the airline is offering separate contract proposals to each group, which will be free to accept or reject.

- Trebor Banstetter

AA pilots: 'Iceberg ahead!'

In a news digest sent to American Airlines pilots, the Allied Pilots Association warns that contract negotiations may be heading toward an impasse after two years of little progress.

"If negotiation progress is akin to a cruiseliner crossing the Atlantic ... it is apparent that negotiations are rapidly closing in on an iceberg," union officials said. "We are closing in on an iceberg and that iceberg is an 'impasse.'"

If the two sides do indeed reach an impasse, then under federal labor rules the union would be free to strike. But an impasse can't be declared by either side - it must be determined by the National Mediation Board. Mediators typically see an impasse declaration as a last resort.

If an impasse is declared, then the NMB offers voluntary, binding arbitration as a means to reach a contract. If either side rejects that offer, there is a 30-day cooling off period before pilots could strike. And even then, a presidential emergency board could be convened which would halt a strike while the situation is reviewed.

That's a lot of hurdles to jump before American's passengers, investors and employees have to worry about a pilots' strike. Still, given the current animosity between labor and management and American, it's not inconceivable that the airline could end up there at some point.

UPDATE, 7 P.M.

Here's American's response to the pilot blast from AA spokeswoman Tami McLallen:

“We are as eager as anyone to wrap these negotiations up and turn our collective attention to running our business. That said, it’s important to note that APA’s proposals would triple our pilot cost per block hour and add $3 billion in annual costs. That is simply not sustainable. We’ve been very clear with APA negotiators regarding our bargaining priorities and objectives. In each of our proposals and counterproposals, which are posted on AANegotiations.com, we’ve consistently told APA negotiators of our need to be competitive. Achieving that competitiveness in pay, benefits and work rules will secure the long-term future of our company, our pilots and all of our employees. There is also ample evidence on the site that demonstrates our interest in boosting pilot compensation, giving them more control over their work schedules and offering proposals that could improve their quality of life. We will continue to work diligently with the mediator and APA toward an agreement and to bring proposals to the table that attempt to balance pilot and business interests when our negotiations continue in October.

- Trebor Banstetter