PAL industrial cabin crew deal watched closely by BA

Philippine Airlines (PAL) has agreed to a number of benefit amendments for its flight attendants in a concerted effort to try to end an industrial dispute that is threatening to escalate.

PAL has agreed to expand the maternity benefits of members of the Flight Attendants and Stewards Association, as well as raise the retirement age from 40 to 45. The concessions are being monitored closely by British Airways and its cabin crew, who are also in the middle of a series of contentious negotiations.

Airline spokeswoman, Cielo Villaluna, said, "The offers were made in good faith, proof that PAL is sincere in its efforts to settle and finally put closure to its 2005-2010 collective bargaining agreement (CBA) with FASAP."

The offers – worth 80 million pesos – come on top of the 25 million peso increase in the rice allowance for the period 2007 to 2010, and making the complete benefit package worth 105 million pesos.

The approval of these, however, hinge on the signing by PAL and FASAP of a final agreement that puts to rest all economic, gender and retirement issues under discussion – something that FASAP has so far been unwilling to do.

FASAP is still fighting for the retirement age for people to be working in cabin crew jobs to be brought in line with other industries and put at 60. They also want flight assignments to be reworked, as the current system means the older attendants receive will all the available perks, with nothing provided for the younger ones.




Southwest promises aviation jobs with AirTran purchase

Budget American air carrier, Southwest Airlines, has bought the troubled AirTran Airways in a $1.4 billion deal that it promises will create a variety of aviation jobs and career opportunities.

The low-cost airline has taken on AirTran's existing debt and capitalized operating leases in the deal. The Texas-based company said it brought the total value of the deal to around $3.4 billion.

Southwest's chief executive, Gary Kelly, said the deal gave them an entry into key markets where they had previously not operated, including New York's LaGuardia airport, Boston's Logan, Baltimore/Washington, the Caribbean and Mexico. He said it offered the potential to create hundreds of new low-fare routes.

He said, "The acquisition of AirTran represents a unique opportunity to grow Southwest Airlines' presence in key markets we don't yet serve and takes a significant step towards positioning us for future growth."

Mr Kelly stressed that the deal "creates more jobs and career opportunities for our combined employee groups, as a whole." AirTran's chief executive, Bob Fornaro, said it was "great news" for the company's 8,000 staff, as well as their shareholders and customers.

The merger is the latest in a line of airline consolidations in the US, undertaken as the aviation industry struggles amid economic woes. Just last week Continental Airlines and United Airlines shareholders approved a merger between the two companies that will create the world's biggest airline.