ATA, Pilots Near Deal
09-18-2005, 10:36 AM
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ATA, Pilots Near Deal
September 14, 2005
ATA, pilots may be near deal
Associated Press
Bankrupt ATA Airlines and its pilots union today moved closer to finalizing a new labor contract proposal, which union leaders could vote on Thursday, just days after pilots authorized a strike that an analyst said could put the carrier out of business.
Rusty Ayers, spokesman for the Air Line Pilots Association, refused to discuss specifics of the proposal that union negotiators and ATA were finalizing following today’s labor talks.
If union leaders approve the agreement, its 800 members would then cast their votes.
Michelle Foley, a spokeswoman for the Indianapolis based airline, declined to comment.
In a statement tonight, the company’s senior vice president of labor relations said the company was encouraged by the continued negotiations despite the strike authorization.
ATA, which is owned by ATA Holdings Corp., filed for Chapter 11 bankruptcy protection in October. It has cut about 3,100 jobs since it began downsizing from a work force of 7,800 people two years ago.
ATA pilots and flight engineers spent 15 days voting to authorize a strike with balloting ending on Monday. However, the head of the Air Line Pilots Association must approve any walkout.
Pilots have criticized wage concessions proposed by the airline that would reduce their earnings to 40 percent less than their contracted rate.
Union officials said their ATA members have accepted $66 million in wage concessions in the past 15 months.
In August, the airline asked federal bankruptcy Judge Basil H. Lorch III to void the company’s current labor contract with pilots. Lorch has until Sept. 23 to rule on the motion, but could issue a decision as early as this week.
Jeffrey Miller, a travel industry attorney in Columbia, Md., said a pilot strike would devastate the beleaguered airline.
“There’s no way to operate without pilots,” he said. “It’s impossible. My guess is if they actually walked, it would be the demise of the carrier.”
ATA lost about $417,000 during the first six months of its fiscal year, according to filings with the Securities and Exchange Commission.
ATA, pilots may be near deal
Associated Press
Bankrupt ATA Airlines and its pilots union today moved closer to finalizing a new labor contract proposal, which union leaders could vote on Thursday, just days after pilots authorized a strike that an analyst said could put the carrier out of business.
Rusty Ayers, spokesman for the Air Line Pilots Association, refused to discuss specifics of the proposal that union negotiators and ATA were finalizing following today’s labor talks.
If union leaders approve the agreement, its 800 members would then cast their votes.
Michelle Foley, a spokeswoman for the Indianapolis based airline, declined to comment.
In a statement tonight, the company’s senior vice president of labor relations said the company was encouraged by the continued negotiations despite the strike authorization.
ATA, which is owned by ATA Holdings Corp., filed for Chapter 11 bankruptcy protection in October. It has cut about 3,100 jobs since it began downsizing from a work force of 7,800 people two years ago.
ATA pilots and flight engineers spent 15 days voting to authorize a strike with balloting ending on Monday. However, the head of the Air Line Pilots Association must approve any walkout.
Pilots have criticized wage concessions proposed by the airline that would reduce their earnings to 40 percent less than their contracted rate.
Union officials said their ATA members have accepted $66 million in wage concessions in the past 15 months.
In August, the airline asked federal bankruptcy Judge Basil H. Lorch III to void the company’s current labor contract with pilots. Lorch has until Sept. 23 to rule on the motion, but could issue a decision as early as this week.
Jeffrey Miller, a travel industry attorney in Columbia, Md., said a pilot strike would devastate the beleaguered airline.
“There’s no way to operate without pilots,” he said. “It’s impossible. My guess is if they actually walked, it would be the demise of the carrier.”
ATA lost about $417,000 during the first six months of its fiscal year, according to filings with the Securities and Exchange Commission.
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