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Airline Division News, Week Ending July 8, 2017

Atlas Air / Southern Air Negotiators meet with management 

July 6th brought about the first negotiating session with Atlas Air management since their first meeting with the company in March 2016, with the parties meeting at a neutral site in Washington, D.C.  As outlined in the framework agreement recently agreed to by the parties, the objective of the meeting was to come to a tentative agreement on articles presented over a year ago. 

The company responded to union proposals on Article 15 - Physical Standards, Article 19 – Discipline, Discharge and Probation and Article 23 - Furlough and Recall; with progress reported on both Articles 15 and 19. Very little progress was made on Article 23 - Furlough and Recall.  

The union made counter proposals on Article 10 - Management and Non-Flying Duty and Article 30 - Uniforms. Passes were made between the parties and at the end of the meeting; while the parties were very close to an agreement on these articles, tentative agreements could not be reached. 

The parties will meet August 8th -11th in Washington, D.C.  

Saltchuk/NAS announce plans to merge NAC, Aloha and StratAir 

In a June 12th email to employees, David W. Karp, CEO of Northern Aviation Services, announced the intent to merge Northern Air Cargo (NAC), Aloha Air Cargo and recently acquired South Florida freight operator StratAir into a single company. In the email, Karp said: 

“As most of you know, our parent company, Saltchuk, purchased their first aviation related companies in 2006. Since the purchase of NAC and NAMS, they have acquired Aloha Air Cargo, Aloha Tech Ops and StratAir. We have experienced many growing pains over the years, but we have successfully managed through them and maintained overall profitability. In 2013, Saltchuk formed Northern Aviation Services to be the holding company for their aviation related assets. Clearly we have seen significant changes over the past decade, and it is a certainty that as we grow and evolve, change will be a constant. 

With that in mind, this email’s primary purpose is to share with all of you that we have decided to combine our two Part 121 operating certificates into one. Although our official certificate will bear the name Northern Air Cargo, our aircraft will remain in the livery of our strong brands, Aloha Air Cargo, Northern Air Cargo and soon StratAir. It’s important to note that this process will take 12 to 18 months to complete, so this isn’t “effective immediately” but rather “heads up.” 

For those of you who are wondering what the catalyst for this change was, there is no single answer. The decision was made based on a combination of different variables involving the complexities of our regulatory, labor and overall economic environments.” 

Aloha and NAC are represented by Teamsters Local 986.  

Support Fund announced for victims of SFO UPS shooting

International Brotherhood of Teamsters Joint Council 7 in Northern California announced the establishment of the “All Charities Teamsters Memorial for W. Chan/M. Lefiti/B. Louie” fund to help raise money for the families of the victims of the June 14th tragedy at the San Francisco UPS facility that resulted in the deaths of three members at the hand of their fellow driver. 

“The Teamsters Union will donate $50,000 to this fund in order to help the families during this difficult time,” said Jim Hoffa, Teamsters General President. “Our union mourns the loss our brothers to this senseless act of violence and stands ready to assist those they have left behind in any way we can.” 

“We are encouraging our affiliates and our members to consider joining us in making a contribution to help the families who have been devastated by this terrible act,” said Ken Hall, Teamsters General Secretary-Treasurer. 

Donations should be sent to: 

All Charities Teamsters

Memorial for W. Chan/M. Lefiti/B. Louie

c/o Teamsters Joint Council #7

250 Executive Park Blvd., Suite 3100

San Francisco, CA 94134

Airline Industry News 

Governmental and Regulatory

Two provisions in the US Senate’s FAA reauthorization legislation cleared June 29 by a key committee received immediate pushback.

With ongoing concerns among aircrews and passengers about cabin air quality, the Global Cabin Air Quality Executive (GCAQE) will organize its first international conference, September 19-20 in London.

Airlines, Industry and Labor

Boeing's 747-8 program  has received a boost from UPS, which has ordered 14 of the aircraft as demand shifts from carrying passengers to cargo. Passenger airlines are now favoring twin-engine designs such as the 777 and 787, according to Boeing. 

A UPS regional hub proposed for Lower Swatara Township, Pa., would bring hundreds of jobs to the area. "An important factor in making our decision where to locate the hub will in fact be how quickly we can go live," said Steve Slifer of UPS. 

Cargo carriers in North America saw volumes increase by 14% in May with capacity growing by 4%. Worldwide demand increased by nearly 13%. 

Southwest Airlines is investing a combined $800 million in a new reservation system and operations technology, while appointing Kathleen Wayton as chief information officer and hiring Stan Alexander as chief technology architect.