- Aug 20, 2002
- 2,070
- 270
Posted on Wed, Feb. 04, 2004
Contractor to resume work for US Airways
Court overturns injunction that blocked Airbus maintenance
TED REED
Staff Writer
A contractor in Mobile, Ala., expects to resume heavy maintenance work on nine US Airways Airbus jets within a few weeks, following a federal appeals court ruling Tuesday.
Meanwhile, US Airways' pilots union agreed Tuesday to negotiate contract changes that involve flying smaller jets to help the carrier cut costs and meet terms of its $900 million federal loan.
The ruling by the U.S. Court of Appeals in Philadelphia overturned an October injunction by a federal judge in Pittsburgh, who had blocked the airline from contracting out the work. US Airways, the nation's seventh-largest airline, has its busiest hub in Charlotte.
The International Association of Machinists contends its contract assures the work will be done by union members. The appeals court did not rule on the IAM's assertion. It said that dispute should be resolved through binding arbitration.
US Airways said the appeals court decision upholds its view that the contract dispute is a "minor" one that can be resolved through arbitration, rather than a contract violation.
The airline is moving ahead with Mobile Aerospace Engineering maintaining nine Airbus A319 jets, which require heavy maintenance for the first time. Six of the planes had been grounded, and three more were slated to be grounded soon, because they cannot fly if scheduled maintenance is not completed.
IAM General Vice President Robert Roach Jr. said the union's contract language assures that its mechanics can do the heavy maintenance. "The court is permitting US Airways to use frivolous arguments to circumvent the status quo requirements of the Railway Labor Act," he said in a statement.
Talks with pilots
In the labor dealings, US Airways' pilots union's willingness to talk comes less than a year after the carrier exited bankruptcy court.
The Air Line Pilots Association leadership council agreed to open for talks only the parts of the contract dealing with the number of regional jets, where they are located, whether they would be flown by US Airways pilots, and pay and work rules for its pilots who may fly the smaller planes, said union spokesman Jack Stephan.
US Airways has said it must cut costs to stem losses and compete with growing low-cost carriers such as Southwest Airlines Co. US Airways said last month it was considering selling some assets to help meet terms on the $900 million loan, which the government guaranteed to help the airline recover after the 9-11 terrorist attacks. "These are their immediate concerns. We agreed we need to address these things first," Stephan told Bloomberg News. "Whether or not they will come back on more issues is a story for another day."
The airline detailed its business plan for the union's board during a meeting that began Monday. US Airways' pilots agreed in 2002 to provide $565 million in wage and benefit cuts, and saw their pension plan terminated by the company last year.
US Airways spokesman David Castelveter declined to comment on specifics of the talks between the Arlington, Va.-based airline and its pilots. But he said the company will continue to have discussions with ALPA on a variety of issues.
US Airways directors were scheduled to hold their monthly meeting today in Charlotte. They are expected to hear a report on the value of airline assets after retaining an investment banker to shop them to other airlines.
-- BLOOMBERG NEWS CONTRIBUTED TO THIS STORY.
-- TED REED: (704) 358-5170; [email protected]
Contractor to resume work for US Airways
Court overturns injunction that blocked Airbus maintenance
TED REED
Staff Writer
A contractor in Mobile, Ala., expects to resume heavy maintenance work on nine US Airways Airbus jets within a few weeks, following a federal appeals court ruling Tuesday.
Meanwhile, US Airways' pilots union agreed Tuesday to negotiate contract changes that involve flying smaller jets to help the carrier cut costs and meet terms of its $900 million federal loan.
The ruling by the U.S. Court of Appeals in Philadelphia overturned an October injunction by a federal judge in Pittsburgh, who had blocked the airline from contracting out the work. US Airways, the nation's seventh-largest airline, has its busiest hub in Charlotte.
The International Association of Machinists contends its contract assures the work will be done by union members. The appeals court did not rule on the IAM's assertion. It said that dispute should be resolved through binding arbitration.
US Airways said the appeals court decision upholds its view that the contract dispute is a "minor" one that can be resolved through arbitration, rather than a contract violation.
The airline is moving ahead with Mobile Aerospace Engineering maintaining nine Airbus A319 jets, which require heavy maintenance for the first time. Six of the planes had been grounded, and three more were slated to be grounded soon, because they cannot fly if scheduled maintenance is not completed.
IAM General Vice President Robert Roach Jr. said the union's contract language assures that its mechanics can do the heavy maintenance. "The court is permitting US Airways to use frivolous arguments to circumvent the status quo requirements of the Railway Labor Act," he said in a statement.
Talks with pilots
In the labor dealings, US Airways' pilots union's willingness to talk comes less than a year after the carrier exited bankruptcy court.
The Air Line Pilots Association leadership council agreed to open for talks only the parts of the contract dealing with the number of regional jets, where they are located, whether they would be flown by US Airways pilots, and pay and work rules for its pilots who may fly the smaller planes, said union spokesman Jack Stephan.
US Airways has said it must cut costs to stem losses and compete with growing low-cost carriers such as Southwest Airlines Co. US Airways said last month it was considering selling some assets to help meet terms on the $900 million loan, which the government guaranteed to help the airline recover after the 9-11 terrorist attacks. "These are their immediate concerns. We agreed we need to address these things first," Stephan told Bloomberg News. "Whether or not they will come back on more issues is a story for another day."
The airline detailed its business plan for the union's board during a meeting that began Monday. US Airways' pilots agreed in 2002 to provide $565 million in wage and benefit cuts, and saw their pension plan terminated by the company last year.
US Airways spokesman David Castelveter declined to comment on specifics of the talks between the Arlington, Va.-based airline and its pilots. But he said the company will continue to have discussions with ALPA on a variety of issues.
US Airways directors were scheduled to hold their monthly meeting today in Charlotte. They are expected to hear a report on the value of airline assets after retaining an investment banker to shop them to other airlines.
-- BLOOMBERG NEWS CONTRIBUTED TO THIS STORY.
-- TED REED: (704) 358-5170; [email protected]
