Tue, May 22, 2007
Airline, Union Keep Details To Themselves
It's a deal -- maybe. Approximately 1,500 Pilots at low-cost
carrier AirTran Airways may soon have a new contract, if they
approve the tentative agreement reached Monday between negotiators
with the airline and the National Pilots Association.
Both the union and the airline are playing details of the
agreement close to the vest, however.
"The NPA will not release any details of the contract; have any
further comments on the tentative agreement, and/or the
ratification process prior to the approval of the tentative
agreement by its Board," the union told ANN. "The NPA's six pilot
Board of Directors will meet [Tuesday] in Atlanta to begin
considering the comprehensive agreement. Should the NPA Board
affirm the tentative agreement it will then be forwarded to the
entire pilot group for consideration."
AirTran spokesman Tad Hutcheson wouldn't discuss the deal,
according to Bloomberg, which also reported the new contract would
take effect July 1 if approved by union membership.
If the contract is ratified, it would resolve one front in a
series of battles AirTran currently faces. The airline continues to
push its hostile takeover bid for Midwest Air Group... and has
recently met with some success, as 57 percent of Midwest
shareholders recently approved a $389 million buyout offer. While
not a resounding majority, it was enough to convince AirTran to
extend the offer until June 8.
AirTran also faces a newly-reinvigorated Delta Air Lines at its
Atlanta, GA hub.
The airline plans to add approximately 850 pilots to its ranks
over the next three years, and is slated to receive 40 new Boeing
737-700s. AirTran also hopes to reduce its non-fuel costs by three
percent in 2007, according to Chief Operating Officer Robert
Fornaro. Those cuts would largely come from salaries and
benefits.
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