United Airlines, Ameco Sign 5-Year Maintenance Deal

BEIJING -(Dow Jones)- United Airlines and Aircraft Maintenance & Engineering Corp. have signed a five-year maintenance contract for heavy maintenance, the companies said in a joint statement Monday.

Ameco will perform maintenance on United's fleet of Boeing 747s and 777s beginning in June, the statement said. United previously had an agreement with Ameco for heavy maintenance of its B777 fleet that expired last year.

United operates 52 Boeing 777s and 24 Boeing 747s. Ameco is a joint venture between Air China Ltd. (0753.HK) and Deutsche Lufthansa AG (DLAKY) established in August 1989.

NASDAQ Story

Senate Approves Short Term Extension of FAA Funding

Thursday evening, the U.S. Senate approved by unanimous vote, H.R. 4853, to provide continued funding for the FAA until July 3, 2010. Included in the bill is over $153 million in funding to cover areas ranging from engineering and development to facilities and equipment, as well as daily FAA operations and airport improvements. While the House and Senate will meet at a later time to resolve their differences over the longer term funding, the current legislation mirrors previous funding levels for the agency.

Airline transport workers forced to plan for picket lines

A few days ago, the Transport Workers Union of America filed for release from mediation for 28,000 members at American Airlines and American Eagle. In other words, we asked the federal government for permission to go on strike. Under the Railroad Labor Act, strikes for workers employed by airlines and railroads are not guaranteed as they are for most other private-sector workers, who fall under a different set of labor laws.
Some people must think we're out of our minds. Why would anyone go on strike now? Why would anyone risk job security? The nation is suffering from a terrible economic downturn and high unemployment, and the aviation industry has been in a tailspin since even before the recession. What are union members thinking?
What are we thinking? Let's start by saying that going on strike certainly wasn't our first or second thought. Our first choice was to partner with the company, to improve it and make it more competitive.
We worked hard at being a full partner. Together, the union and AMR Corp., parent of American, developed hundreds of millions of dollars in productivity gains and brought in new revenue from outside maintenance work.
Read more: Click here

Seattle Post-Intelligencer

The final print edition of the Seattle Post-Intelligencer was published a year ago this week, on March 17, 2009.

Pilots: United Airlines bankruptcy never should have happened

The single largest pension default in U.S. history should never have happened, say former pilots who lost stock and the bulk of their pensions in the United Airlines bankruptcy. The pilots say they are in the early stages of preparing to file a RICO lawsuit based on what they claim was the airline’s fraudulent listing of its frequent flyer Mileage Plus asset – worth an estimated $15 billion at the time - as a liability in documents submitted to a Chicago bankruptcy court and the federal Pension Benefit Guarantee Corporation (PBGC), which took over all of the airline’s pension obligations. Jerry Summers, a former United pilot who involuntarily retired after 36 years of.

Read more at the Washington Examiner:

TWU Files with Federal Authorities Seeking Release and "Self Help"

After four years of contract talks and little progress, the Transport Workers Union of America (TWU) today presented a letter to the National Mediation Board (NMB) requesting that the union, which represents 28,000 workers at American Airlines and American Eagle, be released from federal mediation. TWU’s action now starts a process where the NMB will determine if the union will be granted “self-help” -- essentially the right to strike.

“While we have reached tentative agreements for some workers at American Eagle and significant progress has been made in recent days for Fleet Service workers at American, overall AMR has not sufficiently demonstrated that they value the sacrifices and hard work of our members,” said TWU Air Transport Division Director John M. Conley. “We have been at the bargaining table for years and will continue to work toward agreements, but it’s time that we moved the settlement process to the next step.” TWU represents11 bargaining units at American and American Eagle.

Full News Release chick here.

FAA Proposes Civil Penalties Totaling $787,500 Against American Airlines

WASHINGTON, D.C. – The Federal Aviation Administration (FAA) is seeking to collect three proposed civil penalties totaling $787,500 from American Airlines for maintenance violations.

In the first case, which occurred in April 2008, the FAA alleges American Airlines mechanics diagnosed problems with one of two Central Air Data Computers (CADCs) on a McDonnell Douglas MD-82 jetliner. Instead of replacing the computer, mechanics improperly deferred this maintenance under the airline’s DC-9 Minimum Equipment List (MEL) by noting that the auto-throttles were inoperative. The MEL, however, does not allow deferral of an inoperative CADC.

The airline subsequently flew the plane on 10 passenger flights before the computer was replaced. During this time, flight crews were led to believe that both computers were working properly.

The FAA proposes a civil penalty of $625,000 in this case.

In the second case, the FAA found that in March 2008, American failed to correctly follow an Airworthiness Directive involving the inspection of rudder components on certain Boeing 757 aircraft. As a result, four 757s operated by American Airlines did not comply with the requirements of the Airworthiness Directive.

The FAA alleges that after American was advised of the situation, the company said it would cease flying the planes until they were repaired. However, during the following two days, the airline flew two of the planes on a total of three passenger flights. The FAA is seeking a penalty of $75,000 in this case.

FAA Proposes $1.2 Million Civil Penalty for GE Caledonian

WASHINGTON, D.C. — The FAA has proposed a civil penalty of $1,225,000 for GE Caledonian, an FAA-certificated foreign repair station based in Scotland, for improper maintenance procedures involving 101 engines over a three and one-half year period.

“We hold certificated foreign repair stations to the same high standards as the repair stations here in the U.S.,” said Transportation Secretary Ray LaHood. “When necessary, we will issue civil penalties and ensure that companies take corrective action.”

Between January 2005 and May 2008, GE Caledonian used a procedure to remove the thrust pins from the forward engine mounts of 101 CF6 engines that was different than the one required by the manufacturer’s maintenance manuals. When it removed the thrust pins, GE Caledonian welded the locking screw to the thrust pin instead of drilling and tapping a hole in the thrust pin, as required in the manual.

“Our safety regulations are the core of our aviation system and we take them seriously,” said FAA Administrator Randy Babbitt.

GE Caledonian has 30 days from the receipt of the FAA’s civil penalty letter to respond to the agency.

United Signs Firm Order For 25 A350 XWB aircraft

PARIS (Dow Jones)--Aircraft maker Airbus, part of European Aeronautic Defence And Space Co. NV (EAD.FR), Wednesday said UAL Corp.'s (UAUA) United Airlines has placed a firm order for 25 A350-900 XWB aircraft, its newest twin-engine widebody.

The U.S.-based airline is the 33rd customer for this model, Airbus said.

Deliveries of the aircraft to United Airlines are expected to begin in 2016 and run through 2019.

Airbus couldn't be immediately reached for a comment about the value of the deal.

The order book for this aircraft type now stands at 530, with the final assembly of the first aircraft expected in 2011 and the first delivery scheduled for 2013, Airbus said in a statement.

-By Elena Berton, Dow Jones Newswires; +33 1 40 17 17 65; elena.berton@dowjones.com

Senator blocking FAA bill

WASHINGTON — A Tennessee senator is standing in the way of aviation safety legislation being pushed by the Families of Continental Flight 3407, likely delaying consideration of the measure until next week at the earliest.

Sen. Bob Corker, R-Tenn., has put a “hold” on the Federal Aviation Administration reauthorization bill that includes the safety measures, all because of a labor provision that affects FedEx, which is based in Memphis.

Click her for the full article.

Tilton Has Lunch with the President?

WASHINGTON -(Dow Jones)- President Barack Obama is having lunch Tuesday with the leaders of four companies, part of a regular White House effort to reach out to the business community on economic issues.

A White House official said Jim Skinner of McDonald's, Greg Brown of Motorola, Glenn Tilton of United Airlines and Penny Pritzker of TransUnion were joining Obama for lunch at the White House.

-By Henry J. Pulizzi, Dow Jones Newswires; 202-862-9256; henry.pulizzi@ dowjones.com

Article

Slow News Month

The scheduled meeting between IBT leadership and United Airlines has been postponed due to a death in the family of UAL Maintenance Vice President Jim Keenan.
As soon as the meeting is re-scheduled and new negotiation dates will be announced.


If you had not heard, United Airlines has purchased 10 % of Express Jet stock last week. United had signed a deal with Express Jet to operate 22 ERJ-145 with 10 more starting in May of 2010.

Express Jet is Huston based, has 244 ERJ-145, 900 mechanics, and is represented by the Teamsters. 206 of their jets they operate for Continental Airlines who also has 10% of Express Jet stock. Sky West that flies out of Portland and Seattle have 186 planes operating for United Airlines.

On the local front we recently had a accident in the garage were a mechanic was bleeding the fuel system when the hood of the vehicle fell on his arm. The hospital called it a break and put a cast on it. Luckily, he still had his x-rays from a couple of months ago from an illegal use of a ladder and a sudden impact with the ground. His doctor then removed the cast and he is back to work now.

If you are near a computer at 5am on Tuesday, you can listen in on a UAL conference call at the JP Morgan Aviation, Transportation conference. Here is the link to the webcast. March 9, 2010 8:40 a.m. ET 5:40 PT.

United Airline mechanics contract became amendable 12/31/09
American Airlines mechanics contract became amendable 12/31/08
Continental mechanics contract became amendable 12/31/08
UPS mechanics contract became amendable 11/1/06
Express Jet mechanics contract became amendable 7/31/09
Horizon Air mechanics contract became amendable 11/30/08
Alaska Air mechanics contract became amendable 10/01/09 signed an extension to 10/17/12
Hawaiian Air mechanics contract became amendable 3/31/08
US Airways mechanics contract became amendable 12/31/09
AirTrans mechanics contract is amendable 10/1/13 just ratified last year.
Air Wisconsin mechanics contract became amendable 2009