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Aviation History
2001
2001 - 2368.PDF
BUSINESS DISPUTE NICHOLAS IONIDES / SINGAPORE AND DAVID LEARMOUNT / LONDON Pilots plan summer of discontent As US airlines secure new agreements, European and Asian carriers are latest to face threat of strike action Industrial strife in pilot workforces is hitting airlines worldwide, as many carriers approach the peak traffic season, while others are beginning to feel the effects of the economic downturn. In Europe, following the major dispute at Lufthansa, the threat of actual pilot action faces Alitalia, Iberia and LOT Polish Airlines. In the USA, Delta Airlines is nearing the end of a damaging ENGINE DEVELOPMENT IHI says no to R-R Trent 900 Ishikawajima-Harima Heavy Industries (IHI) says it plans to reject a Rolls-Royce (R-R) offer of a 5-10% risk-sharing stake in the Trent 900 programme despite hav ing earlier taken 5% of the Trent 500, 700 and 800. The Japanese manufacturer says it has been unable to develop a business case for taking part in the Trent 900, which will power the A380. IHI is also grappling with a heavy workload on the General Electric GE90 and CF34-8/10. "For the time being - let's say for the next two years - it is difficult for us to participate in the Trent 900 programme," says IHI civil aero engine general manager marketing and business development Kei Sozuka. IHI has 9% of the GE90 family and 13.75% of the International Aero Engines V2500. period of strikes affecting it and regional partner Comair. On 22 June Comair pilots were due to vote on whether to accept the latest contract proposals after rejecting two previous offers. The latest offer, which would make Comair pilots the highest paid in the regional industry, would increase pilot salaries by 19.6% immediately and eventually by almost 50%. PRIVATISATION Four groups have submitted bids to acquire a majority stake in Olympic Airways in the Greek Government's latest efforts to offload the debt-ridden carrier. The government had set an 18 June deadline after an earlier round of bids failed to meet requirements. Three of the prospective buyers which submitted bids in the earlier round - a Cyprus Airways-led con sortium, Greek privately-owned Axon Airlines and the Restis ship ping group - have put in revised offers, while a fourth has come from Australian company Integ rated Airline Solutions. The Cypriot consortium's offer of $100 million for a 51% share of Olympic would involve the airline division, but not its catering and heavy maintenance sectors. Cyprus Airways says its offer is conditional on the Greek Delta mainline pilots, mean while, have accepted pay increases from 24-39%. In Asia, Asiana and KAL were the first affected by strikes launched on 12 June over working conditions and pay rises. The KAL pilot strike forced hun dreds of flight cancellations over three days, but was resolved by freezing foreign-pilot recruitment from 31 December and giving Government making an undis closed financial contribution and reducing Olympic's 8,000 staff by 25%. The Cypriot consortium plans to cut most of Olympic's long-haul routes and trim its 33-aircraft fleet. Further savings would be achieved through route-sharing and by pooling staff. pilots seats on a flight safety committee. Flight crew at All Nippon Airways called off a 24h strike due on the 20 June at the last moment. The same day Japan Air System pilots called a one-day strike and grounded 40% of domestic flights, but a strike by Japan Air Lines pilots and staff was not well sup ported and had little effect. At Cathay, which announced record profits for 2000, the Hong Kong Aircrew Officers Association (HKAOA) has voted to launch "limited industrial action" from 1 July. After pilot action in 1999, many crew had accepted stock options and a new rostering system in return for pay cuts over a three- year period. Now the HKAOA says it wants the third round of pay cuts due in July to be dropped, and the roster ing deals fully implemented. Asian carriers are warning of poor results this year due to a slow ing of economic conditions. Low productivity, labour dis putes and poor management have seen Olympic Airways' financial position worsen, leaving it with debts of over $100 million. Euro pean regulations rule out further government subsidy. Greek press reports say if a buyer is not found by the winter, Olympic will be unable to pay for wages and fuel. Flight crews are developing industrial muscle Widespread industrial action by flight crew, with the like lihood of more in the peak traffic months from July to September, is raising fears that lack of airline invest ment in pilot training over the years has resulted in a crew shortage, giving flight crew the advantage in negotiations. The International Federation of Airline Pilots Associations (IFALPA) insists that there is no international conspiracy, but that pilots definitely have the upper hand. IFALPA's industrial specialist Stan Clayton-Smith also predicts selective action by pilots working for the big alliances. Pilots are monitoring any attempts to transfer work to the lower-paid crews or lower-cost airlines in an alliance, and Clayton-Smith warns that "there might be some attempts to level up" by lower-paid alliance members. At European no-frills carriers like Ryanair, EasyJet, Go and Buzz, the urgent need for pilots created by the sector's rampant expansion has led to the pilots - and experienced recruits - getting healthy pay or benefits improvements without having to resort to industrial action. But full-frills carriers may well be hoping that the traffic downturns resulting from the US economic slump may take some of the steam out of pilot-power. Olympic contest enters final furlong 52 26 JUNE - 2 JULY 2001 FLIGHT INTERNATIONAL www.fliqhtinternational.com
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