The Union has received many requests for information regarding the temporary understaffing dispensation that the government provided to Continental during hurricane Katrina.  The Company reported that staffing levels were normal as of Monday following the storm and that the dispensation was no longer utilized at that point.  A grievance was filed over the matter.  The Union would like to extend thanks to all employees who worked through the weekend and assisted in the operation.  Information regarding assistance for relief can be found at www.goiam.org.

Northwest Airlines told unsecured creditors that it will cut labor costs, reduce capacity and restructure its balance sheet to improve profits by $2.2 billion to $2.5 billion. Northwest Airlines' regional partners may ask their workers for concessions. Mesaba's pilots union said Mesaba management has asked for "concessionary bargaining." Pinnacle Airlines is expected to update workers on the effects of Northwest's bankruptcy.

Airlines are cutting back capacity as fuel costs increase, but analysts disagree on whether the reductions will help the industry. Some observers say cuts by legacy airlines will instead create new opportunities for discount airlines, which could result in lower fares.   American Airlines will suspend 15 daily roundtrip flights at its hubs in Dallas/Fort Worth International Airport and Chicago's O'Hare International Airport. The temporary cuts went into effect Wednesday and will be re-evaluated October 29. The airline will also stop serving its Chicago-Nagoya, Japan, route at the end of October.

The Government Accountability Office reported that allowing airlines to stretch their pension obligations over several years will not restore the industry to financial health. The plan would allow carriers to hold on to more cash, but it would not change their cost structure or protect them from high fuel costs or steep competition.  Pending pension reform legislation in Congress was stalled this week as lawmakers argue over airline pension reform, a major sticking point in the legislation. American Airlines and Continental Airlines have complained they will be penalized by an amendment allowing Delta Air Lines and Northwest Airlines to stretch pension payments out over several years.

American Airlines needs support from its work force to restructure its operations, the company's chief executive officer said. Gerard Arpey said the airline cannot survive in its current state. He did not indicate whether he would ask labor groups for concessions. He also said the increasing cost of jet fuel may force American to cancel more flights.

Delta Air Lines CEO Gerald Grinstein said the carrier could use the bankruptcy court to get $325 million in cost cuts from its pilots if it cannot achieve the cuts through negotiations. The company, which filed for bankruptcy protection last month, wants to achieve $930 million in annual labor savings.  Delta Air Lines' senior flight attendants will take the steepest pay cut among front line workers, according to details released to the airline's employees, while mechanics will get cut the least.  In addition, the airline will begin charging workers $50 to fly. The benefit previously was free.  Finally, Delta also will not make any additional payments to its pension fund, as well as tightening up sick leave and personal time rules.  The pay cuts go into effect Nov. 1, while most other changes go into effect immediately. The upcoming pay cut will be on top of the 10 percent drop in salaries and pay that all non-union Delta workers received last Jan. 1.

In a related story, Delta Air Lines said it will adopt a temporary fuel-saving measure and cancel flights if they are underbooked, affecting "a few dozen" trips per day. Delta says it will ensure passengers have advance notice if their flight will be dropped and will make arrangements for travelers on other flights.

US Airways and its pilots union reached a tentative contract agreement that will allow the carrier to operate 100-seat jets as part of its mainline service. The carrier hopes the new negotiated pay rates for the Embraer 190 will help it compete against JetBlue.

JetBlue Airways started flying yesterday from Liberty International Airport. The carrier flew to two Florida airports, and it plans to add service to three more Florida cities and Puerto Rico next month.

For the struggling airline industry, rising fuel costs have contributed to the recent decisions by some airlines to file for bankruptcy, cut routes, and raise ticket prices. Airlines are expected to spend more than $30 billion on fuel this year, which is double what they spent in 2003, and up from $21 billion in 2004, according to the Air Transport Association.  The price of jet fuel hit a new high Monday, closing at a record $125.20 per barrel, with a crack spread of $59.73 per barrel.

We would like to encourage all members to attend your Local Lodge business meeting. Each base must have a quorum to conduct business. The following is a schedule for upcoming meetings:

Cleveland: Thursday, October 13, 4:00 pm at 669 North Rocky River Drive;

Guam: Wednesday, October 19, 4:00 p.m. at the Airport Conference Room;

Houston: Wednesday, October 26, 1:00 p.m. at 15710 JFK Blvd;

: Tuesday, October 11, 3:00 p.m. at the Wyndam Hotel.