In an August 6 letter to Airbus CEO Guillaume Faury, Air Line Pilots Association (ALPA) president Jason Ambrosi urged the manufacturer to reconsider its proposal to reduce cockpit crew from two to one from entering the commercial aviation environment.

• READ MORE: Airbus, Avincis to Explore Europewide Electric Air Taxi Operations

Ambrosi cited the recent CrowdStrike cybersecurity incident as an example of the risks associated with an overreliance on technology. Ambrosi stated that technology should complement human expertise and monitored airline operations rather than replace it.

“Technological advancements can and have enhanced aviation safety, but in order to maintain and enhance our current level of safety, technology alone will never replace the indispensable role of two pilots in the flight deck,” Ambrosi said in the letter.

In addition to ALPA, the letter garnered support signatures from leaders of the European Cockpit Association and the International Federation of Air Line Pilots’ Associations, which represent tens of thousands of pilots around the world.

This article first appeared on AVweb.com.

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ALPA highlighted recently released FAA pilot-production data, indicating that the U.S. is consistently certifying a greater number of airline pilots on a monthly basis compared to pre-pandemic levels.

The news comes as industry experts and financial analysts agree that pilot demand has been met, and there is even a surplus of pilots as several airlines have scaled back hiring.

Executives at TD Cowen and Goldman Sachs have expressed optimism, indicating the industry is moving past its previous challenges. “The improved outlook vs. the introduction of the GS Pilot Supply & Demand model in December 2022 is primarily driven by higher-than-expected certificates issued (2022 and 2023 were both records) in addition to slower fleet growth and modestly lower-than-expected retirements,” according to Goldman Sachs.

Several regional airlines have noticed a shift in the environment with decreased attrition rates. Mesa Airlines CEO Jonathan Ornstein said, “There was a time when none of us could find first officers. Now I mean, I think we have close to 2,000 applicants for qualified first officers.” CommuteAir CEO Rick Hoefling echoed that statement. “We can hire first officers. I think almost every regional airline right now has a stack of first officers. The problem is building their time at the same time you’re attriting out captains at a pretty high rate in the industry. We went from a pilot shortage to a captain shortage now in the industry. So the pendulum is starting to move.”

Despite ongoing claims of a pilot shortage by special interest groups, ALPA maintains that while there were some initial backlogs post-COVID, the system is working and yielding a record number of pilots.

Editor’s Note: This article first appeared on AVweb.

The post ALPA, Industry Say Pilot Supply Is Stable appeared first on FLYING Magazine.

The FedEx Master Executive Council voted for Captain Jose Nieves, a Boeing 757 pilot who has been at FedEx for 28 years, to lead the union’s 5,800 members, the Air Line Pilots Association announced late Tuesday.

Nieves replaces Captain Billy Wilson, who was elected October 30, 2023 for an interim term through March 2025 but was voted out this month in the face of growing opposition. A large subset of disenchanted pilots willing to take a more aggressive stance versus FedEx management pushed the vote.

Wilson took the helm when predecessor Christopher Norman resigned in the wake of last summer’s union rejection of a tentative agreement that leadership endorsed as delivering industry-leading improvements on pay, retirement and work-life balance.

Nieves’ term will run through March 25, 2025.

“FedEx pilots are facing challenges unlike any in recent years, and I believe this is a critical time in our union’s history,” said Captain Nieves, in a news release. “At the top of that list of challenges is standing up to a company that has explicitly demonstrated a failure to value its pilots and employees. . .“Our pilots grow more unhappy with FedEx management by the day. It is past time for management to come to the table with a contract that recognizes our value. This is my primary focus, and the work begins today.”

Both sides have been negotiating a new labor agreement for three years and have been under the supervision of the federal National Mediation Board since October 2022. On March 8, the Air Line Pilots Association asked the NMB to declare an impasse and release the parties from mediation, the first step necessary to launch a strike action.

The new MEC leadership, responding to supporters who felt the previous board was too willing to make concessions, has made clear its willingness to take the gloves off and use any means available under the Railway Labor Act to press FedEx for better benefits. The union says it believes FedEx is not willing to change its bottom line from the deal agreed to last summer.

FedEx Corp. last week reported adjusted earnings of $3.86 per diluted share, well above analysts’ estimates of $3.45 per share, with operating income up 19 percent in the third quarter. Operating profit for the Express segment, which is responsible for the air network, nearly doubled after the company idled more aircraft, reduced flight activity and pared other costs. The lower flying levels also mean less pay for pilots.

FedEx has not invoked language in the existing contract that allows the airline to go below minimum guarantee pay for a four-week period when available flying time falls below certain thresholds, according to a message from a pilot who asked to remain anonymous to protect job security. FreightWaves reported early this year that such a move was possible because of the sluggish demand. But domestic flight activity subsequently picked up, according to research by Morgan Stanley.

FedEx stock increased 6 percent on Tuesday, reaching a three-year high of $288.99 per share.

The pilots union says FedEx’s improved performance demonstrates the company can afford a better compensation package. It took umbrage with FedEx announcing another $5 billion share buyback program. A group of pilots conducted an information picket outside the New York Stock Exchange when FedEx reported its earnings on Thursday to draw attention to their agenda.

The FedEx pilots, who once were near the top of the pay heap, want a contract similar to ones won by counterparts at American Airlines, Delta Air Lines, Southwest Airlines and United Airlines. Even pilots at Hawaiian Airlines and Alaska Airlines achieved sizable raises last year.

Cockpit crews appear to have lost leverage since airfreight and parcel demand began falling in mid-2022. FedEx also faces the strong possibility of losing some, or all, of its U.S. Postal business later this year. But the pendulum is slowly swinging back to growth, with global air cargo volumes up more than 10 percent for the first 2.5 months compared to the same period last year and the small package market projected by some to grow about 4 percent per annum over the next three years.

Editor’s Note: This article first appeared on FreightWaves.

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“Increasing the pilot retirement age will disrupt airline operations, raise ticket prices, upend collective bargaining agreements, create a cascading and costly training backlog, and put the United States out of compliance with international standards,” said ALPA President Captain Jason Ambrosi in a statement.

“This is a weird union issue,” commented Senator Ted Cruz during the hearing, citing a push from some union members supporting the age hike.

• READ MORE: Airline Pilots Flying to Age 67?

Supporters of the change argued it would address the pilot shortage and allow experienced pilots to continue flying, citing rising life expectancy and advancements in healthcare.

“We strongly encourage preceding that type of change with appropriate research so that the FAA can measure any risk associated with that policy and define appropriate mitigations,” FAA Administrator Mike Whitaker wrote in a letter to Congress earlier this week.

Last year, the U.S. House of Representatives voted 351-69 on an FAA reauthorization bill that included an age hike to 67 for airline pilots. Thursday’s move by the Senate is part of a broader reauthorization bill, which includes an increase in safety inspectors and air traffic controller staffing.

Editor’s Note: This article first appeared on AirlineGeeks.com.

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An additional 200 to 300 pilots could become redundant late this year if the company, as expected, loses a large chunk of work for the U.S. Postal Service, a senior executive recently told a group of airline employees.

The attempt to shed pilots, who have already absorbed a steep decline in pay, comes as collective bargaining resumes for a new contract.

Management is likely to invoke contract clauses that would allow it to go below the minimum guarantee of 68 flight hours per month when available flying time falls below certain thresholds, said Pat DiMento, FedEx’s vice president of flight operations and training, in a secretly recorded meeting with pilot evaluators that was shared with FreightWaves. Pilots get credit for the minimum number of hours regardless of how many hours are actually flown.

FedEx Express, the largest cargo airline in the world, has essentially been able to pay the equivalent of 200 fewer pilots since the summer by limiting distribution of flight schedules, effectively reducing the current surplus of employees, he said. 

FedEx expects 350 to 450 pilots to accept early-retirement incentives when a deal on a new labor contract is reached, which would allow the company to maintain current minimum credit hours and flight schedules, said DiMento.

In the absence of a tentative contract, the airline would need to reduce the crew list by 200 individuals any way possible to prevent further cuts to pay guarantees. Achieving that figure — through retirement, resignation, leave of absence or offers from competitors — would save the company $50 million per year.

Average daily parcel volume for FedEx Express declined 2 percent and global average daily freight pounds fell 18 percent year over year in the quarter ended Nov. 30. Express volumes were down more than 10 percent for three consecutive quarters through last February and then shrank at single-digit levels for the remainder of 2023. 

FedEx planners are already noticing a decline in January volumes and removing flight hours they previously expected to operate, the flight operations chief recently told the quality control pilots. It was a friendly audience because they are quasi-supervisors that sit between line pilots and management. 

“Unless we get a new contract, it’s [pilot pay] not going to magically fix itself because I don’t see the economy turning around,” DiMento said.

Addressing Labor Pressure In Down Market

Investors were disappointed that major operational savings at FedEx were unable to fully offset lower revenue during the second quarter. Express faces higher labor costs if pilots secure a contract upgrade and newly mobilized mechanics are able to form a union.

Both outcomes are far from certain. 

Workers at Amazon fulfillment centers, Starbucks locations, and other businesses have voted in recent years, for varying reasons, against joining a union. And pilots had more leverage a year ago when major passenger airlines scrambled to refill positions after the pandemic as travel demand spiked. Delta Air Lines plans to hire half as many pilots this year as it did in 2022 and 2023 because the pilot shortage has eased, according to Aero Crew News.

Meanwhile, FedEx is now downsizing internal fleet operations to eliminate excess capacity and is looking to shed pilots amid diminishing parcel volumes.

FedEx cockpit crews, represented by the Air Line Pilots Association (ALPA), in July rejected a tentative contract worth $3.8 billion that would have increased pay by 30 percent over 4.5 years and are back at the bargaining table.

The last round of negotiations, mediated by the federal National Mediation Board, took place Dec. 12-15, and the sides are scheduled to meet again Thursday and Friday. Two more bargaining sessions are set for January.

A majority of FedEx pilots were displeased with the agreement’s level of job protections, back pay, pension options, and quality-of-life considerations and the fact that pay increases were below those achieved by passenger-airline counterparts. Pilots at Southwest Airlines, for example, are considering whether to accept a new contract that would raise pilot pay 50 percent over five years.

After FedEx announced it is accelerating a $1 billion share buyback, ALPA last week said the company should also invest in cockpit crews to provide stability for long-term growth. The union argues pilots deserve to be compensated for the sacrifices and risks taken so the company could earn record profits during the COVID crisis.

Deep division within the pilot group could hamper chances for a quick deal. A slim majority voted to kill the tentative contract, and some wanted to recall the negotiating committee. Those pilots are upset with ALPA for being too accommodating toward FedEx, including in a 2015 contract they say eroded schedule flexibility and other quality-of-life issues. 

Many union members have lost faith in the ability of Capt. Pat May, the chairman of ALPA’s FedEx negotiating committee, to deliver a favorable labor agreement, especially after he did not resign, as promised, when the tentative deal went down last summer, a pilot told FreightWaves. The source asked not to be identified so as not to jeopardize his job or union relationship.  

Pilots over the years left carriers such as American, Delta, United, and Southwest for what they believed were better jobs at FedEx.

“Our work rules are well below our passenger peers. Pay and compensation is starting to lag and stagnant. We fly horrendous schedules which affect our health,” the pilot said. “This entire situation may have killed the best airline job in America.”

Hourly pay scales vary by type of aircraft flown and seniority. A widebody (MD-11 or Boeing 777) captain at FedEx makes $277 in the first year and $326.50 with 12 years on the job, according to data compiled by the Air Line Pilots Association. That compares to $345 per hour in year one at Hawaiian Airlines, a new entrant in the freighter space, to fly the Airbus A330. After a dozen years at Hawaiian, a freighter captain can make $376 per hour. Pilots at UPS make $344 per hour, after an initial probation year, and $366 by year 12.

A veteran FedEx captain pulling a typical 80 to 90 hours per month annually makes about $363,000 in pay and benefits, compared to about $396,000 at UPS, according to analysis by Kit Darby, an aviation labor consultant. A senior captain at Delta Air Lines or United makes about $416,000 per year.

DiMento indicated that FedEx plans to offer the same amount of total money to the pilots in this go round as it did in the tentative agreement, but reallocate it differently between retirement, higher pay scales, signing bonuses or other buckets. 

The worth of the contract will be more than last July because higher pay rates and signing bonuses will have accrued since then and will be retroactively covered in the new contract, DiMento explained.

One of the check airmen, who said he voted in favor of the negotiated contract, questioned if the strategy will work.

“The young guys, their mentality is, ‘We came to this premier airline and we want a premier contract.’ I don’t know if they are going to go for it,” he told DiMento. The total compensation and lifestyle for a veteran FedEx pilot compares very favorably to one at Delta, he added, “but they don’t listen.”

Many pilots were concerned that language prohibiting outsourcing to third-party airlines if FedEx reduces flight hours or furloughs pilots wasn’t strong enough in the tentative agreement, but DiMento stressed management wants to maximize use of its own aircraft and won’t seek operating leases when its own pilots aren’t busy. He said that FedEx wanting long-term transportation service agreements to replace in-house flying undermined passage of the interim contract.

Economic Leverage Shifts

When the parties began negotiations in 2021 to amend the existing contract, the FedEx fleet was maxed out to meet soaring freight and parcel demand, stoked by people buying goods online rather than services because of social distancing during COVID.

The market has drastically changed since then, with e-commerce growth returning to normal and air cargo volumes contracting for nearly 18 months. FedEx Express was hiring pilots as fast as it could and didn’t forecast the severity of the downturn. The company now has more aircraft and pilots than needed to fly current volumes.

There are about 700 surplus pilots out of 5,800 on the payroll, according to FedEx officials. 

In the fall of 2022, FedEx launched an initiative to take out $4 billion in structural costs, especially in the air network, and redesign the entire parcel distribution network for greater efficiency. The air overhaul could make FedEx Express less reliant on aircraft than in the past.

The air and international unit flew fewer hours in 2023, deactivated aircraft until demand returns, accelerated the retirement of older planes, and flew more direct routes. Since the company still has new freighters on order, it’s unclear if the total fleet size will decrease. FedEx last year decided to close three pilot bases in the U.S. and overseas and its Los Angeles airport maintenance facility in 2024. The repair jobs will be sent to Indianapolis.

FedEx is only providing the minimum number of flight hours guaranteed in the existing contract. Pilots are making substantially less money because they have to share a smaller pool of flying assignments. One pilot contacted by FreightWaves said his pay has been cut back 30 percent this year.

In November, management prodded pilots to consider job openings at PSA Airlines, a regional feeder carrier owned by American Airlines, that offered incentives to attract FedEx and UPS pilots.

The FedEx pilot said he had not heard of any colleagues taking the PSA deal. Pilots said in online chat forums that they considered the request disrespectful to veteran crew members who can go directly to a large airline and enjoy superior benefits. PSA did not respond to a message about the success of the recruiting effort.

Since few pilots have been willing to voluntarily leave so far, guaranteed pay could soon fall to about 60 or 61 hours per month, DiMento told the check airmen. That would effectively reduce pilot rolls by an additional 100 individuals and save FedEx about $100 million per year.

He speculated that it would take a $500,000 exit package today to entice some pilots into early retirement because many near eligibility are holding off until a new contract is in place. Normally, about 140 FedEx pilots retire at the end of each year, but only about 40 captains did so in 2023.

When a contract is finalized, FedEx will make it attractive to retire by waiving the requirement for giving notice of early retirement and enhancing the severance package, said DiMento.

FedEx has to balance a new contract offer against the economic realities it faces. It can’t afford to give pilots $500 million extra to close out a deal, DiMento said, when it’s struggling to generate revenue.

“In this business environment, as a pilot you can’t go in there asking for the world. It’s just not going to happen,” he said.

And, the flight operations chief added, the substantial loss of the existing U.S. Postal Service contract means FedEx will have 200 to 300 more excess pilots by October. The Postal Service is in the third year of a transformation plan that includes migrating most air volumes to ground transportation to save money.

• READ MORE: ATI Pilots Seek Federal Mediation on Stalled Contract

Mechanics Mobilize

Meanwhile, FedEx Express mechanics recently launched a campaign to join the Teamsters union.

The organizing effort targets about 5,500 to 6,000 aviation, truck and facility mechanics, and possibly some maintenance workers at FedEx Express, said Teamsters spokesman Matt McQuaid in an email exchange.

Hundreds of technicians have signed authorization cards saying they want the Teamsters to represent them in collective bargaining, the union said in a Dec. 20 news release.

The Teamsters’ goal is to petition the National Mediation Board for a representation election within the next few months, McQuaid said. The NMB will conduct an election if employees or a union is able to collect signatures from at least 50 percent of workers in a potential bargaining unit. Labor relations for airlines are governed by the Railway Labor Act, which highly regulates bargaining procedures that unions and employers must follow, and facilitated by the NMB.

That means any union has the harder task of winning national support across the country instead of organizing individual facilities at the local level.

“The response has been overwhelming,” said Joe Ferreira, director of the Teamsters Airline Division, in a Nov. 13 letter to workers in which he accused FedEx management of engaging in “an anti-union propaganda campaign that grossly misrepresents the factions of your unionization drive, the National Mediation Board process, and disregards federal law.”

According to ZipRecruiter, the average aircraft maintenance technician at FedEx makes $72,000 per year.

The FedEx campaign comes as the Teamsters have tried for more than a year to organize technicians at Delta Air Lines.

“We’re aware the Teamsters are targeting our mechanics at FedEx Express. We respect the right of our employees to choose whether or not to support such efforts. We are incredibly proud of the culture we have built over the past 50 years that empowers our employees’ voices; values their creativity and contributions; and encourages collaboration that is important to them, their career, and our future,” FedEx said in a statement to FreightWaves.

The Teamsters last year chalked up significant wins in the express logistics sector. An aggressive strategy by new President Sean O’Brien forced UPS to grant big pay increases to 340,000 workers while 1,100 ramp workers at DHL Express’ Cincinnati air hub won their first contract, pending ratification, after a 12-day strike.

Satish Jindel, the CEO of consultancy ShipMatrix, said in an interview that “the Teamsters should look for a better target [than the FedEx mechanics] where the law may not limit them and working conditions and wages are bad.”

Editor’s Note: This article first appeared on FreightWaves.

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FedEx will shut down pilot bases in Alaska, California and Germany as part of the company’s aggressive campaign to eliminate billions in structural costs by fiscal year 2027 by streamlining operations and networks, FreightWaves has learned.

Pilots domiciled in Anchorage, Los Angeles and Cologne Bonn Airport in Germany who fly two older aircraft types will gradually transition to other bases in the FedEx (NYSE: FDX) network, the company said in an email statement. The Cologne hub hosts crews for medium-size Boeing 757 freighters, while Ted Stevens Anchorage International Airport and Los Angeles International Airport are home ports for McDonnell Douglas MD-11 pilots.

“As the global business environment continues to evolve, FedEx has made the decision to relocate its pilots and close its 757 crew base in Cologne, Germany (GHN) and its MD-11 crew bases in Anchorage, Alaska (ANG) and Los Angeles, California (LAX). The decision only affects the base of the crews operating these flights and will not impact our current service,” FedEx said. “Our operations in these markets continue to play an important role in the global FedEx network and the flexibility of this network enables us to make adjustments that best meet the needs of our customers throughout the world. As with any base closure, the process is a gradual one and this relocation will occur without any disruption to our operations.

FedEx Express positions pilots across the U.S., Europe and Asia to increase efficiency. Living in the same city where flights originate allows pilots to have the longest layovers and makes scheduling easier in contrast to living in remote locations and having to commute to the base for the next duty cycle. 

FedEx also has pilot bases at its global hub in Memphis, Tennessee, as well as regional hubs in Indianapolis; Oakland, California; and Guangzhou, China.

The airline closed its Hong Kong pilot base in late 2021 because draconian COVID quarantine requirements for pilots returning from overseas trips significantly hampered its ability to operate efficiently. Most pilots were relocated to Oakland.

The base closures are part of a multilayered cost initiative since last fall to right-size operations with the downturn in international and e-commerce shipping volumes as well as make long-term transformational changes. A restructuring, announced earlier this month, will see FedEx combine separate air, ground and parcel businesses under one roof to improve network efficiency. The efforts, launched after FedEx’s operating income significantly underperformed, are expected to generate $6 billion in permanent cost reductions.

A major focus is efficiently deploying crews, aircraft and commercial linehaul. 

FedEx plans to save $700 million per year in its air network by rerouting nonpriority shipments to ground transport and third-party carriers, deemphasizing its hub system in favor of more direct routes and consolidating other functions. The company is also accelerating the retirement of its MD-11 fleet by two years. FedEx operated 58 of the older, tri-engine jets and 119 Boeing 757-200s as of March 1.

FedEx officials have said they will reduce flight hours by more than 10 percent this quarter compared to last year and over the long term invest less in future aircraft as more flying is outsourced.

FreightWaves first reported in late March that FedEx planned to close its heavy maintenance facility at LAX next year and move those functions to its large regional hub in Indianapolis.

The closure of the pilot bases raises uncertainty for FedEx pilots as they try to close out a contract deal after two years of talks. Earlier this month pilots began voting on whether to give union leaders a mandate to call a strike if federal mediation and other steps fail to break the impasse.

“In the final stages of contract negotiations, senior FedEx executives have introduced career-altering changes for the dedicated pilot — a corporate-wide restructure with a new emphasis on outsourcing, pilot base closures, forced pilot downgrades (which equates to a pay reduction) and a push toward moving Express freight on slower modes of transport, essentially cannibalizing the FedEx Express flight network,” the Air Line Pilots Association said in statement last week marking FedEx’s 50th anniversary.

The strike authorization vote closes on May 17.

For more coverage on air cargo, go to FreightWaves.

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Pilots at cargo airline Air Transport International, a large transport provider for Amazon Air, and parent company Air Transport Services Group last week asked the National Mediation Board to help broker stalled contract talks. The request comes nearly a month after union leadership representing FedEx pilots empowered itself to request a strike authorization vote from members. 

Richer pilot contracts could limit near-term profit margins for cargo airlines, but wage increases will be phased in—and corporate executives have likely factored that into their revenue projections.

The Air Line Pilots Association and ATSG (NASDAQ: ATSG) have been in negotiations since June 2020. The contract has been eligible to be amended for two years. Once the NMB approves the request, a federal mediator will take control of the bargaining schedule and oversee negotiations. 

The pilots say they are frustrated by ATI management’s alleged refusal to offer them industry-standard terms while the company posts record profits. Sticking points include compensation and retirement benefits. The union said ATI experienced record levels of attrition in 2022, with 126 pilot departures. An additional 32 pilots left ATI in the first two months of 2023.

ATSG last year generated a record $2 billion in revenue and adjusted profits before accounting measures of $641 million, an 18 percent increase from 2021. Pre-tax earnings for flight services, excluding COVID-related government aid, doubled to $95 million. But the company also noted that a cooling airfreight market will result in an estimated 5 percent reduction in flight hours this year. 

ATSG is a diversified conglomerate with businesses involved in aircraft leasing, maintenance and repair, pilot training, freighter conversions, and logistics. It also owns a passenger charter airline and all-cargo operator ABX Air. Pilots at ABX Air, represented by the Teamsters union, achieved a new six-year contract in December 2020. The contract took more than six years to complete. Both cargo airlines operate Boeing 767 converted freighters for customers such as Amazon (NASDAQ: AMZN), DHL and UPS (NYSE: UPS).

The Amazon contract spurred ATI’s growth from 81 pilots in 2015 to about 550 pilots. ABX Air has about 240 pilots.

Chief strategy officer Michael Berger said during the February 24 earnings call with analysts that the sides are meeting multiple times a month, but no resolution is in close sight. 

“We have always taken the position that we need a pilot contract that pays the pilots well enough that we can retain and attract pilots but also gives us the cost structure required that we compete for business,” Berger said. “And we’ve always been able to make those two positions meet at some point.”

ATSG has not experienced any problem attracting pilots over the past year and has been able to get new recruits trained without any impact to its flight schedules, Berger added.

The union disagrees, claiming ATI is having trouble recruiting and retaining pilots.

“Poor crew planning, poor treatment of pilots, poor working conditions, an outdated contract and an inability to support flight operations due to overworked and underpaid ATI staff across the board have all contributed to a significant number of pilots leaving,” said Capt. Mike Sterling, chair of the union’s ATI unit, in a news release. “ATI pilots’ commitment to delivering superior reliability and service has earned record-breaking profits for ATI and ATSG, yet management is unwilling to invest these profits in the professional pilots who make their success possible. We must secure a contract that reflects the value of ATI pilots.”

One industry observer, who spoke on condition of anonymity, said ATI’s rapid growth has actually been an excellent retention tool because it provides first officers a chance to become captains and move to a higher pay grade. 

Truist transportation analyst Michael Ciarmoli said in a client note that higher labor costs resulting from any successful contract negotiations with ALPA “will exacerbate inflationary pressures within the company’s ACMI (aircraft, crew, maintenance, insurance) segment.” 

But there is no near-term potential for operational disruption from a labor impasse.

The reality is that pilot contracts often take longer than three years to negotiate. Collective bargaining for airline pilots falls under the Railway Labor Act, which is designed to prevent work interruptions in critical interstate commerce. It precludes workers from striking and companies from conducting lockouts until they go through a lengthy series of bargaining steps, including federal mediation. Atlas Air took six years to execute a new contract with its pilots in 2021.

Industry Bargaining

Hawaiian Airlines recently reached agreement with its pilots on a new contract that will also cover its new Airbus A330 freighter service for Amazon, which is scheduled to launch later this year. The contract is considered by pilots and analysts to have set a new bar for the cargo sector above pay scales at FedEx (NYSE: FDX) and UPS. 

UPS pilots last year ratified a two-year contract extension. On the passenger side, pilots at Delta Air Lines and Alaska Airlines in recent months ratified contracts with large raises after allowing the union to authorize a strike when talks dragged on. United Airlines, American Airlines, and Southwest Airlines pilot unions are still engaged in negotiations.

The FedEx unit of ALPA last month passed a resolution authorizing a strike authorization vote in the future after six months of federally mediated negotiations failed to bring the sides closer. Talks have been underway for 20 months and there is no sign that an actual strike vote is imminent. 

FedEx union officials are now meeting with the full National Mediation Board. If no progress is made, the NMB at some point may release the union to a 30-day cooling-off period during which negotiations can still take place but no strike or lockout can occur. After that, if the parties reject binding arbitration, the law allows the president to create an emergency board to investigate a labor dispute and issue a report within 30 days. That is followed by another 30-day period to consider the board’s recommendations and reach an agreement. If no agreement is reached at the end of the cooling-off period, the parties may take action to advance their interests. 

FedEx and ALPA have resolved retirement and quality-of-life issues but are still at odds over pay levels, said Christopher Norman, chairman of the union’s FedEx Master Executive Council, in an interview.

For more coverage on cargo airlines, go to FreightWaves.com.

The post ATI Pilots Seek Federal Mediation on Stalled Contract appeared first on FLYING Magazine.

The announcement follows months of speculation that Graham was considering such a plan. Congress last raised the retirement age for commercial pilots, to 65 from 60, in 2007.

“There is a severe and growing pilot shortage in the United States. Every air traveler sees and feels the impact when they go to the airport,” Graham said. “This summer, if your plane actually leaves on time, you feel like you won the lottery,” he added.

Under the legislation, called the Let Experienced Pilots Fly Act, pilots older than 65 would have to continue to maintain a first-class medical certification to be renewed every six months. The act would also require airlines to continue using FAA-approved training and qualification standards for pilots. The announcement follows months of speculation regarding possible congressional action related to the airlines’ well-known woes.

While extending the eligibility of veteran pilots may seem like a reasonable step in addressing the industry’s problems, the possibility of raising the retirement age for airline pilots is a complicated, controversial topic. Some aviation professionals, including officials with the Air Line Pilots Association, the world’s largest airline pilot union, say the risks of such a move outweigh the potential benefits, and that the industry’s main problems have resulted from airline mismanagement.

“The plain truth is that airlines should take responsibility for their business decisions to cut or reduce service to less-profitable markets while adding service to high-demand communities. Instead, they’re making excuses that aren’t supported in fact or, far worse, calling for regulation rollbacks that would threaten safety,” said ALPA president Joe DePete. In its statement, the pilot union also said the proposed legislation is “another misguided attempt to solve a problem that does not exist.”

The post Sen. Lindsey Graham Aims To Raise Retirement Age for Commercial Pilots appeared first on FLYING Magazine.