I think they might be listening a little bit. I count "Scope" mentioned 3 times.
Carl
July 24, 2009
Transatlantic Joint Venture Agreement
At the recent Regular MEC Meeting in Minneapolis, the MEC unanimously ratified Letter of Agreement (LOA) #16, the Transatlantic Joint Venture Agreement. You may recall, as part of the JCBA last June, the Delta/Air France Joint Venture made its debut in the Pilot Working Agreement (PWA). Following the merger, Delta and Air France decided to also merge the existing NW/KLM joint venture and the existing Delta/AF joint venture into a new Delta/AF/KL joint venture (the JV). As part of this process and in accordance with the PWA, the Negotiating Committee met with the Company to negotiate the terms of this new joint venture as it applies to pilots.
Several improvements to the PWA were negotiated in LOA 16. There are improved scope protections, improved labor dispute language, and several items of the commercial joint venture agreement are incorporated into the PWA. Below are the highlights of the LOA.
•The requirement to maintain Delta pilot block hours in the event the Company’s ownership in a foreign carrier exceeds 25 percent was broadened to include any country the foreign carrier operates from or to the United States. This change was in response to the Air Services Agreement between the European Union (EU) and the US which now allows for flights to depart or land in any European country, regardless of which European country said partner is headquartered.
•In the event the Company enters into another joint venture, the “home country” provision in this section now has an expanded meaning to include other carriers in other countries that are acquired, controlled or are subsidiaries of the first carrier. This provision affords us additional protections regarding the EU and also regarding a United/Aer Lingus type transaction.
•Labor dispute language was extended to include all of our international flying partners.
•Cabotage language was improved to restrict DL code from being placed on any flight of an international partner that engages in cabotage. While cabotage is presently mostly prohibited by statute, this may not always be the case. The EU position during the present, second phase of Air Services negotiations, for example, includes allowing cabotage.
•Important aspects of the commercial agreement between Delta and AF-KL were incorporated into the PWA. The Delta pilots’ share of the JV flying was codified into the PWA and can only be changed under specific circumstances.
•Contractual language was added to protect Delta pilots in the event a carrier controlled by AF/KL begins competing operations across the Atlantic.
•Key provisions of the AF/KL JV agreement mirrored in this LOA, that may impact Delta pilot jobs, cannot be modified without the consent of the MEC.
We believe this Transatlantic Joint Venture agreement will be beneficial for the Delta pilots in much the same way as the NW/KLM joint venture agreement was beneficial for the Northwest pilots. This LOA gives the Delta pilots additional protections that reflect the new reality of the European Union, and addresses the threats of cabotage and subsidiary flying. Finally, it delineates the share of flying to be performed by the Delta pilots in the joint venture. We continue to work to improve the Scope related provisions of the PWA. The last few agreements we have negotiated strengthened existing language and created new provisions to prospectively protect the Delta pilots from future circumstances. As the industry evolves, we will continue to focus on Scope.
Tim, John, Rick, Randy, Dan