State of the Airlines

Tuesday, February 15, 2005

NEWS: ATA Pilots OK Temporary Reductions

ATA Airlines pilots, represented by ALPA, approved a four month deal that will reduce wages and benefits to a greater degree than the contract offer the rejected just about one month ago. This is the same group of pilots that up until recently had openly expressed their lack of confidence with ATA management. According to ALPA leadership this new decision shows that the pilots are gaining confidence in the management now that Southwest Airlines is involved. The approval margin was an impressive mandate with 78% of the pilots voting in favor of the agreement.

I find all of this pretty impressive actually. The rhetoric being traded between ATA management and its pilots last month seemed rather terminal. But the reality check is that its a buyers market when it comes to pilots right now...so its better to try and save what you have than to throw it all away. Not that this deal is going to save ATA, there's much work to be done. They still need a permanent contract with the pilots and ATA is still trying to strip costs out of the airline to become competitive again.