Sky Talk

From hunters to hunted

It had to happen eventually, but after decades of being used to protect America and its allies from enemy aerial attacks F-16 Falcon fighter jets built in Fort Worth are now going to be used as targets.

A Boeing and BAE Systems team has begun work at Cecil Field in Jacksonville, Fla. to convert an F-16 into a QF-16 drone, to be used eventually as a target for testing weapons systems.

Boeing received a $69.7 million Air Force contract in March 8 for the first phase of the QF-16 project. The team will receive six F-16s during the program’s development phase for engineering tests and evaluation. Up to 126 QF-16 drones will be converted beginning in 2014.

The QF-16s will provide the Air Force higher performance drones the Vietnam era QF-4s, old F-4 Phantoms, they are to replace.

- Bob Cox

Details of the TWU-AA fleet services agreement

The tentative agreement between American Airlines and its fleet services group is a three-year deal with a 3 percent signing bonus.

The agreement also includes a 3 percent wage increase when the contract goes into effect and two more 1.5 percent wage increases one and two years after signing.

But the deal also outsources fuel services and bus drivers and reclassifies cabin cleaners at several airports in the American network. Some workers will be outsourced effective immediately while others will see their jobs go away when they retire or voluntarily leave the company.

American said it is offering employees at these locations, a voluntary separation allowance of $25,000 and in some cases, will let workers keep current retiree medical benefits if they retire before January 2011.

Continue reading for more details.

-Andrea Ahles

DOT fines AirTran and Delta for misleading ads

If an ad says there is a $39 airfare, it has to be true.

But it wasn't, in the case of a February "Leave the Blizzard Behind Sale" from AirTran Airways. So the Department of Transportation announced on Friday that it has fined AirTran $20,000 since there were no seats available at the $39 price.

In case you were wondering, the cheapest seat in that airfare sale was $44.

The DOT fined Delta $40,000 on Friday, also for violating rules that require airline ads to disclose the full price consumers must pay for air transportation.

In several Internet ads, Delta's link to taxes and fees that are extra failed to refer consumers directly to the government required information on taxes and fees.

-Andrea Ahles

More thoughts from TWU on the Fleet Services TA

Another message went out to Transport Workers Union members this afternoon that shows how dissatisfied union negotiators are with the Fleet Services tentative agreement.

The negotiating committee said it "cannot recommend the T/A," but that it is bringing it to the members for a vote because federal mediators said "there would not be any other meetings scheduled until the end of year or possibly later."

Details of the tentative agreement, which covers 10,600 ground crew workers at American, have yet to be released.

-Andrea Ahles

What the TWU really thinks about the new deal

Apparently, the TWU Fleet Services negotiating committee is not as pleased with the tentative agreement as it appeared.

In its press statement, the TWU said that they are taking the deal to its membership for a vote because federal mediators won't release them from talks unless they do.

Under the Railway Labor Act, airline unions must first ask the National Mediation Board for release which would then start a 30-day cooling off period. After that period, then a union is allowed to strike.

"It became clear during our meetings with the National Mediation Board that our union would not be granted release from mediation unless the members of the union are first permitted to vote on the company's offer," said Tim Gillespie of the TWU's Air Transport Division. "Members will have to carefully look at the state of the economy, look at what they gave up in 2003 and think about what this contract delivers before voting in July."

The TWU said that the tentative agreement is similar to the three previous agreements made earlier this month with the mechanics, stock clerks and maintenance technician groups. Those included signing bonuses, structural wage increases and increased holiday pay in exchange for a 24-hour, 7-day a week maintenance base operations and the end to company-paid retiree medical benefits for workers under the age of 50.

-Andrea Ahles

American Airlines and ground workers reach a deal

American Airlines and the Transport Workers Union have reached a tentative contract agreement for the more than 10,000 ground workers at the Fort Worth-based carrier.

Terms of the deal with the Fleet Services group weren't immediately disclosed.

This follows three previous tentative agreements that American reached with TWU mechanics, stock clerks and maintenance technicians earlier this month.

However, American is still in mediated negotiations with its pilots and flight attendants union. The Association of Professional Flight Attendants has asked federal mediators to "release" them from negotiations which would start a 30-day cooling off period which could then be followed by a strike.

-Andrea Ahles

Global air traffic falls 2.4 percent in April, volcano to blame

Global passenger traffic dropped 2.4 percent in April mainly due to the thousands of canceled flights for six days during the month, an industry group said.

The International Air Transport Association said European carriers experienced the biggest traffic drop of 11.7 percent as the volcano continues to intermittently disrupt European air travel.

"The ash crisis knocked back the global recovery - impacting carriers in all regions," said Giovanni Bisignani, IATA's chief executive. "Last month, we were within 1 percent of pre-crisis traffic levels in 2008. In April, that was pushed back to 7 percent."

North American carriers posted a 1.9 percent decline, down from the 7.8 percent increase in March.

-Andrea Ahles

APA elections runoffs are set for June

Given how many candidates were running for president of the Allied Pilots Association, run-off elections were inevitable.

The APA, which represents over 11,000 pilots at American, has set its run-off ballot with the deadline for voting on June 23. Since no candidate running for president or vice president or secretary/treasurer, received a majority of votes in this first round of balloting, the APA requires a run-off.

Captain Keith Wilson, who received 1,281 votes, and Captain David Bates, who received 1,241 votes, will face-off for president.

Captain Mike Leone, who had 1,589 votes, and first officer Anthony Chapman, who had 1,027, will be in the run-off election for vice president.

Captain William Haug, with 1,541 votes, and First Officer Shankland, with 1,368 votes, will compete for the secretary/treasurer position.

Continue reading for the APA's hotline with the full results.

-Andrea Ahles

Motley Fool says throw AMR stock away

Once a week, Motley Fool slams a stock and this week the online investment site picked Fort Worth-based AMR.

In its "Throw This Stock Away" feature, a Motley Fool columnist says that AMR, parent company of American Airlines, is estimated to post a loss this year unlike some of its industry competitors who analysts pick to be in the black.

"AMR isn't toast. Consumers seem to have no beef with the product, considering 7.1 million passengers boarded American flights last month. There also appears to be some near-term relief in fuel prices," the column says. "However, AMR's bloated cost structure is still going to make it the last kid picked. If its competition can be profitable at price points where AMR is not, this can't end well for the legacy carrier."

So which airline industry stocks does Motley Fool like?

Continental Airlines, eLong and Dallas-based Southwest Airlines.

"Southwest has had its share of stumbles, but I believe that its "bags fly free" campaign is a real differentiator for passengers sick of seeing other carriers pile on new fees and charges. Analysts see Southwest's profit more than tripling to $0.68 a share this year, climbing to $0.88 a share in 2011. That's the trajectory that investors like to see," the column says.

-Andrea Ahles

Fewer pilots and maintenance workers employed by U.S. airlines in 2009

With fewer planes flying during the economic recession it is no surprise that there were fewer pilots and fewer mechanics employed by U.S. airlines in 2009.

A new report from the Bureau of Transportation Statistics shows that domestic carriers had 6.4 percent fewer pilots and 7.2 percent fewer maintenance workers last year when compared to 2008.

Of the legacy carriers, only Delta Airlines added pilots to its payroll, 190 pilots for a 3.0 percent increase. The Atlanta-based carrier’s numbers do not include Northwest Airlines as the two carriers did not complete their integration until late last year.

Fort Worth-based American Airlines had a decrease of 2.6 percent in its pilots work group and a 13.1 percent drop in its maintenance workforce.

Several low-cost carriers added pilots including Dallas-based Southwest Airlines which hired 46 pilots for an increase of 0.8 percent. Southwest also added 45 maintenance workers for a 2.6 percent increase.

Continue reading for the full employment charts from the Bureau of Transportation Statistics.

-Andrea Ahles