ExpressJet / ASA Stock Clerk Negotiations Continue

Contract negotiators for the Express Jet and ASA Stock clerks met and continued discussions from June 5th through June 7th in Atlanta. They were able to finish working on Classifications, Bid Areas and Work Areas and reached a tentative agreement on that section of the proposed contract.

Tentative agreements were also reached on Filling of Vacancies, as well as Health and Safety.

During the session, the Union also made an initial proposal on Reduction in Force and Recall procedures, with the Company presenting an opening proposal on Leaves of Absence policies.

Frontier Mechanics and Related Negotiations Update

The parties met June 4th through June 6th in Denver for negotiations on the new contract. New members of the airlines management team; CEO David Siegel, COO John Bendoraitis, and VP of Maintenance Allen Messick, addressed the union committee on the state of the airline and the direction they would like to take regarding maintenance.

During discussions the parties were able to TA seven open articles; Articles 1(Preamble), 4 (Management Rights), 5 (Union Representation), 15 (Safety and Health), 17 (System Board of Adjustment), 27 (No Strike/No Lockout), and 28 (Savings Clause). In addition, progress was made in Articles 6 (Union Security) and 16 (Grievance and Discipline).

The parties are scheduled to meet again the week of July 30th.

Airline Industry News

Governmental and Regulatory

The House of Representatives this week passed a bill to fund the Homeland Security Department at a level of $46 billion. Under the measure, funding for the Transportation Security Administration will decrease slightly.

Airlines and Industry

United Airlines and the union representing Continental Airlines flight attendants have reached a tentative agreement.

An 8% drop in oil prices this year will be a boon to the airline industry, but Europe's debt crisis and a slowdown in China's economy could still threaten the industry, experts say.

AMR Corp., the parent company of American Airlines, has begun layoffs of management and support staff, sources say. The carrier also plans to reduce its July flight schedule by 1% due to "a number of factors, including increased reserve utilization due to higher-than-normal pilot sick usage.”

United Airlines may carry out additional job cuts in Houston due to its merger with Continental Airlines. United previously announced job cuts of 1,300 in Houston after Southwest Airlines received approval to add international flights at William P. Hobby Airport.

The European Aviation Safety Agency is nearing a settlement with Airbus over fixes to the wings of A380s.