Topics: Northwest Scope, Pinnacle Gets $2M ALPA Fund, ALPA Sues SkyWest
NW Emerges from Bankuptcy
As Northwest (NWA) emerged from bankruptcy on May 31, after reducing debt by $4.2 billion, Calyon Securities Analyst Ray Niedl said that it was in a strong competitive position. Fleet costs were reduced by $400 million per year, while labor costs dropped by $1.4 billion per year. It also eliminated unprofitable routes. However, he pointed to the singular exception of its inability to change its scope clause as pilots wanted strong restrictions. Niedl called the problem a shortfall, although he pointed out some progress has been made in this area. More progress would put Northwest on a strong footing as the airline industry increasingly relies on low-cost regional operators to help them save money and continue serving a host of domestic routes. Its plans call for the addition of 72 76-seat regional jets from both Bombardier (BBD) and Embraer (ERJ) which include first-class sections.

ALPA Advances $2M to Pinnacle Pilots
Pinnacle Airlines (PNCL) pilots, represented by the Air Line Pilots Association, International (ALPA), received access to $2 million from the union's Major Contingency Fund (MCF) as negotiations with management on a new collective bargaining agreement passed the 27-month mark. The allocation provides Pinnacle pilots with the needed resources to fully prepare themselves and their families for a strike in the event that a fair agreement cannot be reached at the bargaining table. The Pinnacle pilots began contract negotiations in February 2005, and their contract became amendable in May 2005. A mediator with the National Mediation Board has been helping in the negotiations since August 2006. Remaining issues include scope, work rules, and compensation.
"The pilots of Pinnacle Airlines are solidly committed to achieving our contract goals," said Capt. Wakefield Gordon, chairman of the Pinnacle unit of ALPA. "In an environment in which airlines such as Pinnacle are reporting industry-wide shortages of pilots, we are not going to accept management's proposals that would continue to make us the lowest-paid pilots in the industry."

ALPA Files Suit Against SkyWest
In its latest effort to represent the 2,600 pilots on SkyWest’s roster, ALPA, through its SkyWest Pilots ALPA Organizing Committee, filed suit against SkyWest Airlines, Inc. (SKYW) to prevent the carrier from interfering with SkyWest pilots' right to organize under the Railway Labor Act. ALPA already represents the pilots at SkyWest subsidiary Atlantic Southeast Airlines.
For its part, SkyWest issued a statement explaining that ALPA obtained a temporary restraining order on Tuesday, May 21 without a hearing or any opportunity for SkyWest to file a paper in opposition.
“In fact, the TRO was drafted by ALPA and signed by the court without any input from SkyWest,” said the airline. “On May 24, SkyWest was granted a hearing in which the TRO was severely limited from its original form. As a result, ALPA is excluded from using SkyWest property and electronic communication systems to campaign. Rather, only a select group of SkyWest employees who are attempting to organize a local ALPA chapter are allowed to post messages on SkyWest forums and electronic mail – a right they already enjoyed prior to the TRO. These specific employees were also granted the temporary right to distribute literature in non-work related spaces. All pilots are temporarily permitted to alter their uniforms by wearing discreet ALPA paraphernalia.
As the name implies, this is only a ‘temporary’ order and not a substantive decision on the merits of the case. Another hearing will take place in June to determine whether these temporary provisions should be made permanent. Regardless of these events, we strongly believe that the long-term interests of all SkyWest employees are best served by maintaining our current open-door relationship with our employees.”