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Airline Division News, Week Ending May 26, 2018

Airline Division and Allegiant Air Dispatchers Reach a 5 Year Agreement with Airline

The International Brotherhood of Teamsters Airline Division and Teamsters Local 986 have reached a tentative agreement with Allegiant Air on a five-year contract for approximately 34 flight dispatchers at the company.

“Congratulations to everyone who worked to reach an agreement that is amenable to both the company and its flight dispatchers,” said Capt. David Bourne, Teamsters Airline Division Director. “This is a very important agreement that we believe will assist the company in its quest to become an industry powerhouse.”

The tentative agreement comes shortly after an election in which the company’s mechanics voted to join the Teamsters. A contract ratification vote for the flight dispatchers is anticipated before the end of July.

“This contract includes significant improvements in job security, benefits and compensation,” said Chris Griswold, Local 986 Secretary-Treasurer. “I’m pleased that we were able to work with the company and our membership to reach a contract that reflects the dedication and professionalism embodied by the flight dispatchers at Allegiant Air.”

Teamster Pilots at Flexjet Speak Up

Teamsters Local 1108 Business Agent and Flexjet pilot Laddie Hostalek speaks up in support of Flexjet pilots in an interview with Kevin Mitchell, Chairman of the Business Travel Coalition.

Topics include management’s decertification strategy, collective bargaining in a tight labor market, the role of third-party anti-union fringe groups, a Flexjet manager’s comparison of pilot unionism to cancer, and more.

Click here to listen to the interview.

Airline Industry News

Governmental and Regulatory

Members of the US House Committee on Appropriations have attached a host of amendments to the FY 2019 Transportation, Housing and Urban Development Funding Bill, before sending it to the full House for an expected vote in upcoming weeks.

Senate Aerospace Caucus co-chairs Mark Warner (D–Virginia) and Jerry Moran (R–Kansas) on May 24 introduced a bipartisan bill to advance research and development in the aeronautics industry.

Airlines, Industry and Labor

UPS has opened a package sorting and delivery facility at London Gateway Logistics Park. The facility will be able to sort 28,000 packages per hour and can be expanded.

JetSuite, a private charter service backed by JetBlue Airways, will order up to 100 hybrid-to-electric planes from start-up manufacturer Zunum Aero, which also counts JetBlue as an investor. "The aim is to improve the experience of flights under 1,000 miles, with shorter trips through the airport and cheaper-to-operate flights," said Bonny Simi, president of JetBlue Technology Ventures.

UPS has launched full container load service between Hong Kong and Duisburg, Germany. "By launching this new rail freight connection, UPS is committed to helping our customers in both Europe and Hong Kong grow their businesses and reach new markets." said UPS Europe executive Mike Harrell.

Atlas Air has announced the addition of Jane Lute and Sheila Stamps to its board of directors. "Ms. Lute's in-depth knowledge of cybersecurity and information technology and Ms. Stamp's diversity of strategic and financial experience make them welcome and highly qualified additions to our board of directors," said Robert Agnew, Atlas Air Worldwide's board chairman.

The fallout from last year’s air freight capacity crunch is still playing out, with shippers and forwarders on the hunt for charter flights and alternative shipping strategies.

Mexican civil aviation authorities are conducting a special inspection of the charter operator at the center of the May 18 accident in Havana, and have suspended the company's operation until further notice—the third such action in eight years against the carrier.

Pre-tax earnings for US airlines fell 27% —down approximately $700 million year-over-year—in the first quarter of 2018, as fuel, labor, airport and aircraft expenses outpaced revenues, according to an industry overview by Airlines for America (A4A) released May 23.

This year as we again enjoy the start of the summer season with family gatherings, cookouts and events and never ending commercial appeals; we ask that you join us and remember that this weekend is not for the joys these may bring. Memorial Day is our day…indeed our responsibility to recall and remember those who gave their lives in battles on distant shores to defend our nation. Many lie in marked graves and many lie in unknown fields.

Please join us as we take a moment to remember those men and women who gave so much for us. For those who may have been family; speak their names aloud so they will never be forgotten.

In remembrance of the fallen, the offices of the Airline Division will be CLOSED on Monday, May 28th. We will reopen for regular business on Tuesday, May 29th.