Air Nelson Warns of cuts

[vgp]

apologies if this has already been posted on the board.

Airline warns of cuts
By TRACY NEAL - Nelson | Wednesday, 25 June 2008

Air Nelson could reduce the number of aircraft in its fleet because of the current economic climate and softening passenger numbers, general manager John Hambleton is warning, ahead of a pending pilot strike on July 4.


"Airlines are collapsing around the world, and fuel prices are out of control. There is a forward outlook that does not support the extravagances being pursued," Mr Hambleton said of the pilots' claims.

Possible reduction in the fleet was news to New Zealand Airline Pilots' Association executive director, Rick Mirkin, who said on Wednesday that the company had a duty to consult over such matters, but "hadn't said a word".

Air Nelson pilots are to strike on July 4, following what they say have been unsuccessful efforts over nine months to achieve a new collective contract.

Mr Mirkin said pilots' rosters remained the sticking point, as opposed to pay increases. Strike action would start on July 4 and continue daily for an indefinite period, when pilots would withdraw labour for part days.

Mr Hambleton said the company was challenging the legality of the strike notices, and "substantive proceedings" had been lodged with the employment court.

The company was preparing a contingency plan, and had a team of 19 non-union members signed up to assist.

Mr Mirkin said Air Nelson pilots had not had a pay rise in two years, but this was not the main obstacle in reaching a settlement. Air Nelson had "steadfastly refused to consider changes to the pilots' roster", which would allow them to have more family time and attend activities at home more often.

Mr Hambleton said the union was talking about a "whole gamut of claims" which now totalled just over $8 million, of which a large chunk was roster claims.

He also said details within the roster claims would remove flexibility for the airline, which was not an option.

"We're not in the same paddock. There's just no way the airline could afford to absorb these sorts of cost, and suggests that Alpa is out of touch with the industry.

"In the current climate, the attitude of this union is extraordinary," Mr Hambleton said.

Mr Mirkin said the none of the pilots' actions could be considered extreme.

"We are very well aware of the external environment in the airline industry around the world, but the Air New Zealand group is in better condition than other airlines," Mr Mirkin said.

Air Nelson, as a feeder network, had until now been a very profitable part of the national carrier, he said.

www.stuff.co.nz/nelsonmail/4596708a6510.html

[flyjoe180]

Mr Hambleton used to run Eagle Airways and is well known for standing his ground. It is sad to see a company with a happy past and a good culture being put into turmoil like this.

[Dave Homewood]

I don't think their past has been all happy Joe. They had a couple of rounds of lay offs a few years ago because they were in a similar situation. A friend of mine works for them and was very worried for a time but he managed to stay on while seveal of his colleagues were made redundant. In those days it was because the other Nelson airline (started by the same guy who started Air Nelson and who was forced out by Air NZ) was outdoing them in the market. Now sadly Origin is gone though.

[flyjoe180]

Any airline has it's moments, just like any commercial company. Part of the issue is the cultures those Link airlines had have changed as the 'old guard' move on and new influences are introduced. The pilots I knew that were happy at Air Nelson have moved on not only because of this dispute, but also because the nature and 'feel' of the company has changed. They are not alone, other airlines here and abroad are also having the same issues. As are a few other operators here in NZ.

[flyjoe180]

Air Nelson has parked up two Q300's:

Air Nelson pulls two planes out
By TRACY NEAL - Nelson | Tuesday, 01 July 2008

Escalating fuel prices, which have forced up the cost of air travel, and a drop in people's spending power are behind a decision to withdraw two aircraft from Air Nelson's national schedule, general manager John Hambleton says.


He said the decision was based on monitoring of forward loadings, but there was no suggestion of resulting job losses at this stage.

Air Nelson has nearly 485 staff on its payroll, of which 230 are Nelson-based.

Fares had increased by a combined 10 percent in recent months as the airline sought to recover some of its costs, Mr Hambleton said.

Planned changes would see the frequency of some scheduled flights reduced and smaller planes used for some services.

The changes would be made "across a number of routes" but the company would continue to service all the destinations it currently did. The airline serves destinations from Kerikeri to Invercargill.

The company still planned to increase its fleet of Q300 aircraft from 21 to 23 by the middle of next year.

An analysis was being done to determine what was causing a drop in bookings.

"It could be seasonal or it could be a follow-through (of economic factors), but it's prudent management, and not associated with the current staff negotiations."

Meanwhile, Air Nelson pilots have given notice that they will strike from Friday for an indefinite period. They will withdraw labour for part-days, following what they say have been unsuccessful efforts over nine months to achieve a new collective contract.

The beginning of the strike action coincides with the start of the school holidays.

New Zealand Airline Pilots' Association executive director Rick Mirkin has said that pilots' rosters remain the sticking point, as opposed to pay increases.

A ruling yesterday following an Employment Relations Authority hearing last Friday means negotiations will now be referred to the facilitation process. Mr Hambleton described this as a method of supervised bargaining to try to move towards a resolution.

On Monday Mr Mirkin said it was a positive development from the union's perspective, particularly as it had overcome Air Nelson's legal challenge against the union's application for facilitation.

"They've granted our request for facilitation bargaining, after Air Nelson went to great lengths to oppose our application in court."

An independent chairman, likely to be an authority member, would now oversee the process, for which a date had yet to be set.

Mr Hambleton predicted that this could take some time because of the "huge complexity" of claims involved.

He has criticised the union's stance in the current economic climate, which he said was as drastic as the effects on the global aviation industry after the September 2001 terrorist attacks in the US, and the severe acute respiratory syndrome (Sars) outbreak in 2003 which spread international panic.

Air Nelson wanted to find a common ground with its pilots, but that was difficult when it was dealing with claims totalling close to $8 million, he said.

Air Nelson's fuel bill, based on current prices, was forecast to nearly double current expenditure, and rise by $25 million next year, rather than the $16 million increase budgeted recently.

He said the company was working at several fuel-saving projects, including implementation of more direct flying routes using the Q300's sophisticated navigation equipment, plus revised approach and taxiing procedures.

www.stuff.co.nz/nelsonmail/4603789a6510.html

[ox]

Over here is Oz at the Red Rat Link they announced last month that we are retiring our last 6 -100 series Dashs and dropping a couple of routes.

This has meant that they have closed our Mildura maintenance base at Southern Australia Airlines with the loss of 21 jobs.

In Melbourne we are down to 11 flights a day from 22 less than 12 months ago - a combo of pilot shortage + fuel prices.

Looking forward hopefully this is only a short slump as we still have 10 more Q400s for delivery in the next 12 months plus 12 more options - if fuel keeps at this level we'll be taking over 737 runs with soon.

[nzompilot]

And just to prove that everything in NZ revolves around rugby - a story about this weekends Air Nelson ALPA pilots strike

Pilot strike bites Makos
The Marlborough Express | Thursday, 17 July 2008

Two Blenheim Airport flights will be affected by a three day Air Nelson pilot strike starting tomorrow.

Passengers due to fly to or from Auckland on the airline have been rescheduled to other Air New Zealand services.

It meant the Tasman Makos rugby team had to hastily rearrange its travel plans to get from Nelson to Pukekohe for Sunday's Air New Zealand Cup warm-up match against Counties Manukau at Growers Stadium.

The three-day strike follows a year of unsuccessful negotiations, punctuated by recent industrial action.

Pilots for the Air New Zealand subsidiary were asking for a pay rise and changes to rostering, which currently allowed just one weekend off each month, New Zealand Airline Pilots' Association executive director Rick Mirkin said.

"We've been meeting with this company since July last year and we've not succeeded in convincing Air Nelson to take these rostering issues seriously. By that I mean they haven't made any realistic offers at all."

He said pilots were not well paid, but the real "sticking point" was obtaining a better work/life balance for pilots.

The Air New Zealand owned company employs about 180 pilots spread among seven bases around the country. More than 160 are members of the pilots association.

They are seeking pay increases of 4.5 percent, 3.5 percent, and 3.5 percent over the next three years and are asking for a 5pm finish on the Friday before their weekend off.

Mr Mirkin said pilots were often stuck at work until 11pm.

Air Nelson general manager John Hamblton has slammed the action as "rigid, adversarial and litigious".

He has said the pilots' claims would amount to around a 30 percent increase in labour costs.

"(It) would require the company to employ in excess of 36 additional pilots, costing the company millions. We do not believe our passengers are willing to pay millions of dollars more for their airfares."

Mr Mirkin said Air Nelson's refusal to budge has led to a campaign of industrial action which began in February with pilots refusing to work beyond their rostered hours.

"(Air Nelson) has traditionally relied on the goodwill of pilots to work on their days off, their annual leave and to jump in their car and drive to from base to base to cover shortages. And it's been very profitable for Air New Zealand through this period. It's reported to be the most profitable business unit."

Mr Hambleton said Air Nelson ran two daily return flights between Auckland and Blenheim and where possible passengers had been notified of the changes and accommodated on other service.

Makos team manager John Caldwell said this morning that despite their best efforts, Air New Zealand could not provide a satisfactory alternative for the team, so it will fly direct from Nelson to Auckland and return on Sunday on Pioneer Air.

Mr Caldwell said the Counties Manukau union had responded to the team's plight superbly by picking up some of the extra costs involved in getting the team to Pukekohe.

Source