And It's Taking A Toll

A pilots strike at helicopter operator PHI Inc. is now entering its fourth week... and one Texas community is feeling the pinch.

"Our crew is not flying out of here," said Tracy Shaw, marketing vice-president at Oak Bend Medical Center in Richmond, TX. Fort Bend Now reports the hospital's helo remains tied down... with emergency flights being handled by other area operators based out of nearby Sugar Land Regional Airport.

Though its primary customers remain offshore oil operators, PHI also handles medical flights for several communities along the Gulf coast. Those cities have had to make other plans since the strike began September 20, when pilots walked out due to what they termed an ongoing labor dispute.

As Aero-News reported, the pilots -- represented by the Office and Professional Employees International Union Local 108 -- have worked without a contract since 2004, or nearly two-and-a-half years. Negotiations between the company and the union have stalled -- with the pilots demanding more pay, and an end to mandatory overtime.

The strike has taken its toll on PHI, as well. After weeks of maintaining the strike has done relatively little to affect its operations, on Thursday the Lafayette, LA-based company filed a report with the Securities and Exchange Commission that stated  "approximately 20% of the flights in our domestic oil and gas segment, and 10% of the flights in our air medical segment remain curtailed."

"If we are unable to resolve our differences with the union expeditiously or to replace the lost flight hours, it could have a material adverse effect on our operations, revenues and financial condition, as well as on our relationships with customers," the company added in the SEC filing. "We are a highly leveraged company and, as a result, have significant debt service obligations."

Due to that situation, the helicopter operator said it will be increasingly forced to use its revenue to pay off its financial obligations... with fewer funds available to keep its regular operations going.

That's a slippery slope... as it stands to reason the fewer flights PHI can fly, the less money it can take in.

Meanwhile, the union maintains it has plenty of funds to keep the strike going... with a financial aid fund for striking members "is strong, and should remain so for the foreseeable future."

FMI: www.phihelico.com, www.opeiu.org