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September 9, 2005
Weekly Update

The Update Message from the International Association of Machinists representing Continental, ExpressJet and Continental Micronesia Flight Attendants in the 2339 Local Lodges

Friday, September 9, 2005 

The enrollment period for eligible Continental, Continental Micronesia and ExpressJet employees to buy or sell vacation ends Friday, September 2, 2005; enrollment is through "myCOAIR." If co-workers do not make an election during the enrollment period, Continental and Continental Micronesia employees' elections will default to "not purchase a week of vacation." Continental flight attendants are enrolling through CCS, as they have done in the past, through September 7, 2005 

Experts in the airline industry are in agreement that the spike in fuel prices caused by Hurricane Katrina could not have come at a worse time for the troubled airline industry. Higher fuel costs could push Delta Air Lines into bankruptcy, analysts said. Airlines are also worried about a jet fuel shortage as the storm forced major pipelines that supply fuel to Atlanta to be shut down for three days. Prices were already rising before Hurricane Katrina struck a devastating blow to the travel industry, and fall 2005 may make 2001 seem tame to business travelers, The New York Times reports.  

US Airways will pay the Pension Benefit Guaranty Corp. $23.5 million to resolve claims against the carrier. A bankruptcy court on Friday approved the settlement, which will resolve more than $13 billion in claims by the pension agency. The airline will make a $13.5 million cash payment and provide a $10 million note to the PBGC. 

Delta Air Lines will eliminate up to 1,000 jobs in Cincinnati and sell 11 large jets in an attempt to restructure quickly. Analysts say the airline is trying to avoid filing for bankruptcy protection. Delta operates its second-largest hub in Cincinnati. Delta will reduce capacity by 26%. The airline said the hub was "oversized relative to local traffic." Delta will also add more international and domestic flights to its Atlanta hub. 

United Airlines said it will emerge from bankruptcy protection early next year as a "much more competitive" airline. The airline filed its reorganization plan with a bankruptcy court Wednesday. United said unsecured creditors probably will receive just four cents to seven cents on each dollar. A $2.5 billion, all-debt loan package from Citigroup, JP Morgan Chase, General Electric and Deutsche Bank AG will finance the reorganization plan. 

Northwest Airlines and its mechanics union will resume negotiations. The mechanics went on strike nearly three weeks ago. The carrier said it wants $203 million in annual labor savings, up from its original demand of $176 million. "Our last best offer which was presented to you on August 18 was based on economic circumstances that no longer exist today," said a letter from Northwest sent to the union. The company told the union it will start hiring replacement workers by September 13 unless the two sides reach an agreement.  The company said it will start permanently replacing the workers if an agreement is not reached by Tuesday. Standard & Poor's downgraded the airlines' credit rating again and said it expects the airline to file for bankruptcy.   

The Transportation Security Administration still has not set performance goals or created ways to assess cabin crew security training aboard commercial flights, a new government report found. The Government Accountability Office report also found the TSA has set no timeline for determining whether a voluntary self-defense training program established in 2004 for airline employees is effective. 

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, September 21, 4:00 p.m. at the Airport Conference Room;

Houston: Wednesday, September 28, 1:00 p.m. at 15710 JFK Blvd; 

: Tuesday, September 13, 3:00 p.m. at the Wyndam Hotel


 

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