Global Aviation carriers, three unions agree to contract amendments

By Caroline Salls

Pittsburgh, Aug. 23 - Global Aviation Holdings Inc. units World Airways, Inc. and North American Airlines, Inc. are seeking court approval to enter into amendments to their collective bargaining agreements with the International Brotherhood of Teamsters, the Air Line Pilots Association and the Transport Workers Union, according to a Wednesday filing with the U.S. Bankruptcy Court for the Eastern District of New York.

World and North American said they agreed with each union on five-year CBAs containing a package of modifications that would save the Global Aviation debtors more than $100 million, or up to 90% of the savings requested in the proposals initially made by the carriers.

The concessions include the following:

• The World pilots, represented by the Teamsters, agreed to provide $15.9 million in annual savings through a combination of a salary reduction, a reduction in the monthly guarantee to 62 hours, a reduction in the costs for the target benefit retirement plan, a reduction in World's costs for the pilots' health care and dental plans, reductions in vacation day and sick day accruals, various cost-saving changes to burdensome scheduling rules, a reduction in per diem rates and minimization of the circumstances in which World must pay for pilots to stay overnight at downtown hotels while on layover;

• The North American pilots, represented by ALPA, agreed to provide $3.7 million in annual savings through a combination of a salary reduction, reductions in trip hour credits, reductions in North American's 401(k) match, reductions in vacation day accrual, vacation pay and premium pay, various cost-saving changes to scheduling rules and a reduction in per diem rates;

• The World flight attendants, represented by the Teamsters, agreed to provide $3.87 million in annual savings through a combination of a salary reduction and elimination of longevity bonuses, a reduction in the monthly guarantee to 62 hours, changes to flight attendant retirement benefits, reductions in vacation day and sick day accruals, various cost-saving changes to burdensome scheduling rules, a reduction in per diem rates and reductions in the circumstances in which World had to pay for flight attendants to stay overnight at downtown hotels;

• The North American flight attendants, represented by the Teamsters, agreed to provide $1.6 million in annual savings through a combination of reductions in paid time off, personal days and vacation days, reductions in overtime pay and the "trip rig," a reduction in flight attendants' monthly guarantees, a freeze in flight attendants' longevity for two years and the elimination of the company-sponsored 401(k) match; and

• The World dispatchers, represented by the TWU, agreed to provide $127,800 in annual savings from a combination of a salary reduction and a schedule change to four days on, three days off from four days on, four days off.

A hearing is scheduled for Sept. 12.

Global Aviation is a Peachtree City, Ga.-based provider of charter air transportation for the U.S. military and of commercial global passenger and cargo air transportation services. The company filed for bankruptcy on Feb. 5, 2012 under Chapter 11 case number 12-40783.

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