Headline News
Airline Division News, Week Ending April 28, 2013
UAL Negotiations Update
The parties met in Phoenix this week, aided by Senior Mediator Pat Sims and Mediator Michael Kelleher of the NMB. Comprehensive proposals were exchanged that included wages, benefits, retirement security and scope.
After the initial proposals were made, subcommittees worked towards understanding the basis of the proposals. In addition the continued work of finalizing language continued.
The beginning of the week found the parties far apart in their positions. Progress was made in subcommittee work through the week and it is expected that further comprehensive proposals will be made the week of the 29th when the parties reconvene in Chicago.
Seniority integration committee discussions also continued this week in Phoenix. The committee worked on the craft seniority list identifying ties between the three lists. Several discrepancies were found and the committee has requested further information from the company. The committee will continue its work on the list in an effort to finish before the end of May.
Airline Industry News
Governmental and Regulatory
The Federal Aviation Administration said that the U.S. air traffic system will resume normal operations by Sunday evening after lawmakers rushed a bill through Congress allowing the agency to withdraw furloughs of air traffic controllers and other workers.
The Federal Aviation Administration lifted its grounding order for Boeing 787s, including for United Airlines. The FAA also estimated the cost of fixing the 787 battery issue at $464,678 per aircraft. However, Boeing may cover the cost of the battery fix under warranty.
Airlines and Industry
The CEO of FedEx says the FAA should adopt satellite based air traffic control.
In this editorial, the Wall Street Journal decries the Federal Aviation Administration's decision to furlough air traffic controllers.
Delta Air Lines reported a $22 million loss in the first quarter for its oil refinery in Trainer, Pennsylvania. Delta purchased the refinery in June and reported a $63 million loss in the fourth quarter of last year.