Friday, September 2, 2005

Northwest Airlines said an ongoing mechanics strike caused few service disruptions. The company's mechanics have been on strike since August 20. Some members of the mechanics union are questioning the union's decision to call a strike before members were allowed to vote on the company's contract offer.  Meanwhile, the airline's pilots union is preparing for another round of talks with the company, which is seeking more than $300 million in concessions. 

A federal bankruptcy judge extended the deadline for United Airlines to file a reorganization plan. United's exclusive right now extends until November 1. The judge warned the airline that he would not grant another extension without "compelling and unforeseeable circumstances." United filed for bankruptcy almost three years ago, and it said it will file a reorganization plan next month. 

US Airways reached an agreement with the federal government's pension agency that will settle nearly $2.7 billion in claims related to the termination of the company's pension plan. The agreement ensures the Pension Benefit Guaranty Corp. will back US Airways' bankruptcy reorganization plan. 

Some airports ran low on jet fuel and airlines canceled hundreds of flights in the aftermath of Hurricane Katrina. The storm damaged refineries on the Gulf Coast and cut the supply of jet fuel in the U.S. by 13%, according to the Air Transport Association. Jet fuel is being shipped by air tanker to airports in Charlotte, North Carolina, Fort Myers, Florida, and West Palm Beach, Florida. Some analysts say the fuel shortage could push some carriers into bankruptcy. 

Jet fuel prices rose more than 20% after Hurricane Katrina damaged oil refineries and disrupted oil production. Some airlines are raising ticket prices to make up for higher fuel expenses. Still, soaring fuel will increase financial pressure on carriers and possibly push some into bankruptcy.  

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, September 8, 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;