In 1994/1995 the Michael Boyd Aviation Consulting group did a report for the pilots in negotiations and in that report Boyd stated "the airlines were poised to make record profits over the next several years"
Check the date – September 1995 - Read Boyd's comment - not quite the euphoric outlook for the industry at the time.
Airline unions hammered
By Lee Sustar | September 23, 2005
Excerpt:
| THE BANKRUPTCY filings by airlines Delta and Northwest September 14 signal yet another wave of attacks on unions that have surrendered tens of thousands of jobs and billions of dollars in concessions since 2001.
The carriers are expected to follow the example of United Airlines and US Airways in using Chapter 11 bankruptcy proceedings to slash costs--for example, dumping pensions into a government insurance fund, slashing jobs and ramming through wage and benefit cuts.
US Airways has cut the number of jobs from 44,684 in 2001 to 22,460 today--and will soon merge with America West to create a low-cost, low-wage carrier. United has used bankruptcy to eliminate 42,253 jobs since 2001, about 44 percent of the total, as the company grabbed $3.5 billion in labor concessions.
Now Delta and Northwest--which already obtained givebacks in order to avoid bankruptcy--are prepared to use the courts to accelerate their own cost cutting. "The big thing you can do in Chapter 11 is stiff your creditors and get rid of all the airplanes you don't want and force employees to accept givebacks," said Michael Roach, former president of America West airlines and now an industry consultant.
While high fuel costs were blamed for triggering the bankruptcies, the underlying cause is the irrational economics of industry deregulation and the overcapacity in the industry that developed in the late 1990s.
Yet there's no sign that Northwest's bankruptcy proceeding will lead to solidarity with AMFA strikers. Instead, the company is trying to shut the mechanics' union out of bankruptcy proceedings, claiming that they no longer have a contract and have "no forum" in court. AMFA, which is not affiliated with the AFL-CIO, remains isolated in the labor movement.
At Delta, management has to contend with only one major unionized group of workers--the pilots--and will use bankruptcy to club them into making concessions. "Pilots will have to do it or learn how to say 'Welcome to Wal-Mart,'" Mike Boyd, an airline industry consultant, told a reporter.
In spite of your foggy memory, In the 1995 Negotiations Job Security was a primary concern in Tulsa and the System