Headline News

Airline Division News, Week Ending July 20, 2013

ExpressJet Update

The federal mediator assigned to ExpressJet negotiations reconvened the parties on July 15th with discussions continuing through July 18th.

The parties discussed proposals on Vacations and began discussion on Section 22 – (General and Miscellaneous). A proposal on this section had initially been made in May 2010, just prior to the merger announcement. 

Negotiations will resume on August 7, 2013.

Airline Industry News

Governmental and Regulatory

The Federal Aviation Administration cut funding for NextGen initiatives designed to improve the flow of air traffic in U.S. skies. "The sequester and future funding unpredictability requires the FAA to make sizable budget cuts that affect our operations and our future," FAA Administrator Michael Huerta said in testimony to Congress.

An audit report by the U.S. Transportation Department's Office of Inspector General recommended tightening security for data collected by the Federal Aviation Administration on pilots and aircraft.

Airlines, Industry and Labor

American Airlines and US Airways have committed to an equity stake among union members for the proposed merger between American and US Airways. The total equity stake could be around $1.76 billion.

A new rule requiring 1,500 flight hours for first officers will not affect large airlines, but may affect regional airlines, thus affecting service to small cities.

American Eagle pilots have rejected the latest contract proposal.