Airlines Carry Half a Million Passengers in One Day For First Time Since March

Airlines Carry Half a Million Passengers in One Day For First Time Since March

More than half a million air travelers passed through TSA checkpoints on Thursday, the highest number since mid-March. The Transportation and Security Administration (TSA) reported 502,209 screenings at US airports.

Airlines hit the milestone as over 400,000 passengers took to the skies on three separate days in the preceding week, in the clearest sign yet that air travel is beginning to slowly recover. 

While this number is less than a quarter of what is normal for this time of year, it represents a marked improvement over the lowest point on April 14, when only 87,534 travelers were screened at TSA checkpoints.  

The airline and travel industries are facing a perfect storm of suppressed demand because of COVID-related restrictions on in-person gatherings, high unemployment, and a negative feedback loop, where airlines cannot serve cities without higher levels of customer demand. 

To attract more passengers, airlines have aggressively cut fares and fees. These moves have brought in more travelers, but have also reduced revenue.  The addition of thousands of new passengers willing to fly brings airlines closer to financially breaking even. 

Airlines are growing again, slowly.

Despite the hardships, airline stocks are on the rebound, and insiders expect the industry might reach passenger loads as high as one million travelers a day by the end of July.

In a press release earlier this month, American Airlines announced it was planning to increase flight activity to 55% of normal capacity in July. The carrier added it is planning to increase its lucrative international routes back to 20% of 2019 levels.

United’s plans for July include restoring non-stop service in over 140 domestic routes and the airline will add flights to Europe and several cities in Asia, along with destinations in Latin America and the Caribbean. 

Hawaiian Airlines suspended most inter-island flights and has operated just one daily flight to Los Angeles since March 26 when Hawaii state officials instituted a mandatory 14-day quarantine for arriving passengers. The airline is planning to increase flight capacity by 18% when the quarantine mandate for inter-island travel is lifted on June 16. The quarantine for all passengers arriving from out-of-state will be in effect through July 31.  

Spirit Airlines is expected to triple the number of flights it operates at its home base in Fort Lauderdale (FLL). They expect to operate 70% of their schedule in July and are going ahead with plans to expand international destinations.

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All this is great news for anxious airline employees whose jobs are secure until September 30 thanks to payroll protection funding allocated by the CARES Act. Every airline is planning to have a much smaller workforce after that date due to uncertainty about whether the number of coronavirus cases can be contained until there is an effective vaccine or treatment, which is expected to take a year, possibly longer. Hundreds of airline employees have already taken some type of voluntary unpaid leave of absence, and the companies are unveiling a variety of early retirement programs. 

The Summer 2020 travel season will be very different for passengers and airline employees, but the industry as a whole hopes the recovery will be better and faster than forecasts show. 

 

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Senator Casey: Hours Reductions are Not Allowed Under CARES Act.

Senator Casey: Hours Reductions are Not Allowed Under CARES Act.

Senator Casey: “Reducing workers’ hours without their consent reduces workers’ paychecks in the same way that reducing workers’ rate of pay would.”

 

This week, Senator Bob Casey (D-PA) called on Treasury Secretary Steve Mnuchin to issue clear guidance to airlines and industry lobbyists stating that cutting the pay and benefits of airline workers violates the CARES Act, even if those cuts come by way of furloughing full-time workers to part-time. Senator Casey is a member of the Senate Committee on Finance, which played a major role in drafting the bill. 

Senator Casey said the clear intent of the CARES Act, which delivered billions of taxpayer dollars to airlines, was “specifically to protect the jobs and livelihoods of workers in the airline industry,” and that airlines could not reduce the pay of their workers after accepting relief funds.  Further, Senator Casey said in the letter that reducing full-time workers to part-time reduces their pay and benefits, despite leaving pay rates intact. 

“I write to express my concern that multiple air carriers have threatened to or are currently involuntarily reducing the hours of employees despite receiving payroll support under the Coronavirus Aid, Relief and Economic Security (CARES) Act,” Senator Casey said in the letter. “In passing this legislation, Congress made clear its intention that any air carrier receiving assistance must agree to maintain payroll and not cut employee compensation. I urge you to immediately issue guidance that makes clear that unilateral and involuntary reductions in employee hours are prohibited under the CARES Act.” 

Senator Casey also sent letters to the CEOs of United, jetBlue, and Delta, and to Airlines for America, the lead lobbying group for US air carriers, putting industry executives and lobbyists on notice about the importance of following the law and respecting workers.  

A growing number of lawmakers involved in creating the CARES Act have written to the CEOs of major airlines following a scheme by United Airlines executives to take billions in relief funds intended to cover payrolls – and then cut payrolls while keeping the money. United Executive Vice President Greg Hart tried to defend the move and said the furloughs weren’t really pay cuts because pay rates would remain the same. Senator Casey, who has a legislative record promoting economic security for working families, showed little patience for such word games. 

“This is in clear violation of Congress’ intent and should not be undertaken by any air carriers accepting federal assistance,” Senator Casey said. 

“Congress’ intent that air carriers use this assistance to fully protect workers’ compensation and employment was clear,” he wrote. 

IAMAW District Legislative Director David Roderick praised the actions of Senator Casey and other lawmakers who have come forward in defense of working families in the airline industry over the past two months. “Senator Casey is a true friend for airline workers. He’s been a trusted ally and strong voice for airline safety and the fair treatment of airline employees and passengers for years.” 

Read the full statement by Senator Casey Here >>

Do you live in Pennsylvania?

Lawmakers need to know that we appreciate their help. If you are a constituent of Senator Bob Casey, please take a second to let him know that our union values his assist.

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What do YOU Think?

Do you feel that furloughs before October 1st are a violation of the CARES Act…

…even if they are only furloughing full-time agents to part-time?

 

Aloha, Kaulana

Aloha, Kaulana

Sisters and Brothers,

With deep sadness, I share the news that our Brother Kaulana Pakele, who served as Safety Director for District 141 at Hawaiian Airlines, passed away last night. Kaulana was surfing on Memorial Day near Makaha Beach in Oahu, Hawaii, when he went into distress and was rescued from the water.

Kaulana embodied the spirit of Aloha in everything he did: He proudly honored his Hawaiian and Polynesian culture in his work as an award-winning musician, and also fiercely defended the safety of his Brothers and Sisters in the Machinists Union.

He was born and raised in Hilo, on the Big Island of Hawaii, and was initiated into IAM Local 1979 in Honolulu in 2006 when he began working at Hawaiian Airlines. Kaulana was already an accomplished musician, and he took the job at the airline in part so he could enjoy traveling, as so many of us do. He became a Shop Steward and quickly took on positions of more responsibility, which led to his appointment as District 141 Safety Director for Hawaiian Airlines in 2016. He was a member of the contract negotiating committee for Hawaiian Airlines and also served on the IAMAW Joint Airline Transportation Safety Committee. 

We will miss Kaulana’s bright smile that would light up any room and his eagerness to liven up any gathering with his beautiful singing, but most of all we will miss our Brother whose dedication to the well-being and security of his brothers and sisters in our union is an inspiration to us all. 

We join Lisa, his wife for 23 years, his children, grandchildren, and his parents in their grief and ask that you keep them in your thoughts and prayers. We also share our loss with his friends and colleagues in the artistic community in Hawaii where he was beloved and admired. 

Aloha, dear Brother.

Mike Klemm

President and Directing General Chair, 
District 141,
International Association of Machinists and Aerospace Workers

Hawaiian Airlines Negotiations Update

Hawaiian Airlines Negotiations Update

 May 8, 2020

Dear Sisters and Brothers,

We hope this communication finds you safe and healthy. As you are aware, we entered into Limited Issue/Expedited Negotiations with Hawaiian Airlines in the month of February. The majority of the Negotiating sessions were spent on sharing the proposals of both sides. We spent time explaining your proposals and listening to the Company proposals so that we had a very good understanding of the intention/purpose of the Company proposals. We were able to make some progress and felt that we were on our way to reaching a good Agreement on your behalf. The plan was to meet most of the month of April in hopes of reaching that Agreement. Unfortunately, due to the COVID 19 pandemic, we were not able to meet to further the discussions.

On Monday, May 4, We held a conference call with the Company to discuss resuming Negotiations. We made it very clear that our position remains unchanged. We must reach an agreement that rewards our Members at HA fairly for their hard work and sacrifices. We believe that HA will survive the current state of the Airline Industry and will return to profitability. Today’s hard work and sacrifice will make that possible. You deserve to be recognized for that moving in to the future. That recognition comes from a good Contract. An agreement was made to extend the timeframe for the Expedited Negotiations.

The plan for Negotiations will be to resume meeting with the Company as soon as the quarantine order is lifted by the State of Hawaii. We hope that happens sometime in June. Our position will be to pick up where we left off in March.

In closing, thank you for all you do. It is with your support and solidarity that your Negotiating Committee will be able to secure a good contract on your behalf.

In solidarity, 

Mike Klemm

President and Directing General Chair, District 141, International Association of Machinists and Aerospace Workers

Dave Supplee

President and Directing General Chair, District 142, International Association of Machinists and Aerospace Workers

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IAMAW District 141 President Mike Klemm on the Stimulus Package: “Help is on the Way.”

IAMAW District 141 President Mike Klemm on the Stimulus Package: “Help is on the Way.”

Sisters and Brothers,

Working almost around the clock since Monday, the leadership of the House of Representatives and the US Senate engaged in negotiations to produce a historic $2 trillion stimulus bill that provides significant relief to our nation’s health care and transportation workers.

The Senate voted 96-0 last night to adopt the bi-partisan agreement, and it now moves to the House, where it will be introduced by Speaker Pelosi tomorrow and it is expected to pass.

Your actions since the beginning of this crisis, and your quick mobilization this week to contact elected officials in Washington made the difference for every working person in our country. Thanks to you, we are more certain of our future.

 

Once it becomes law, the CARE Act will secure the airline industry and our jobs for the next 6 months as we recover from the COVID-19 pandemic, and will provide loan guarantees to rebuild our nation’s aviation infrastructure for the long term.

 

Key highlights for airline relief include:

 

  • $25 Billion in grants to airlines for payroll assistance. Before Labor’s input, the bill only had a loan program. These grants are EXCLUSIVELY for the continuation of payment of employee wages, salaries and benefits. Before Labor’s input, this provision did not exist. 
  • No condition to open Collective Bargaining Agreements and enter concessionary  negotiations to receive grants or loans. Before Labor’s input, the Treasury Secretary had the power to impose unlimited conditions for receiving federal funds. Your calls helped us close this major loophole.                                                                                                                  
  • As a condition to receive federal grant funds, a carrier must refrain from conducting involuntary furloughs until September 30, 2020. Before Labor’s input, this important provision did not exist.
  • Prohibition on stock buybacks and dividend payments until September 30, 2021, and limits on executive compensation and “golden parachutes.” Neither of these requirements existed before our Labor negotiators insisted on them.

I also want to remind our Brothers and Sisters at American Airlines that the ratification vote for the Joint Collective Bargaining Agreement will close tonight at 8:00 Eastern Standard Time. You can find information at the Association Website if you have questions or are having difficulty voting. Please take a few minutes to make your voice heard.

Thank you again for your dedication and professionalism. In these most difficult circumstances, you are showing up every day to get our customers where they need to go. We are not out of the woods yet, by a long shot, but if we continue to speak up, show up, and take care of ourselves and each other, we will overcome this crisis.

Please make sure you take time to unwind, and try to get enough rest. Our EAP Representatives are always available at https://iam141.org/employee-assistance-program/

In Solidarity, 

Mike Klemm,
President and Directing General Chair, 
District 141, International Association of Machinists and Aerospace Workers

 

Federal Aid Package to Airlines Has a Gaping Hole and Needs to Be Fixed NOW

Federal Aid Package to Airlines Has a Gaping Hole and Needs to Be Fixed NOW

The federal aid package presented by the Senate, which is expected to be voted on shortly contains a huge problem that could affect every airline worker in the United States. The proposed legislation currently has NO protection against opening up existing collective bargaining agreements if an airline seeks a loan or loan guarantee.

A self-proclaimed labor leader is spiking the ball, claiming victory and credit, but obviously DOES NOT understand what’s missing in the legislation that she is taking credit for.

The text of the bill states, “A loan, loan guarantee, or other investment by the Secretary shall be made under this section in such form and on such terms and conditions and contain such covenants, representations, warranties, and requirements (including requirements for audits) as the Secretary determines appropriate.”

“This means the Secretary of the Treasury could demand that contracts be renegotiated and concessions made before loans, loan guarantees or investments are made. This is exactly what we were working to avoid. This needs to be fixed now or it could result in airline workers taking steep concessions.

Please contact your elected officials and ask them to ensure that the loan component of the federal aid package has the same language as the grant component of the package. You may contact your representative HERE, courtesy of Democracy.io.

We must act now to clean up the mess made by other so-called labor leaders.

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