United - Aer Lingus deal: Now we're outsourcing whole flights

[The Gopher]

Saw this today:

http://www.glenntilton.com/home/2009/1/22/...-lingus-in.html

Fair use excerpt:
“Aer Lingus has advised the Irish press that this joint venture will operate an Aer Lingus aircraft with neither United nor Aer Lingus employees, under a separate operating certificate and under newly established wages and working conditions."

 

[767jetz]

This is unbelievable! I think you will see VERY strong legal action from the unions on this. I don't know the details yet, but I suspect there would be some scope clause violations with this, unless their lawyers have found some loopholes. EVERY airline employee across the industry should be worried about this. If such a precedent is set you can bet all the other CEO's will take notice. Here is a press release from ALPA:

FOR IMMEDIATE RELEASE



Statement from Captain Steve Wallach,

Chairman, United Master Executive Council

Air Line Pilots Association

Regarding United’s ‘Innovative’ Partnership

With Aer Lingus



January 22, 2009



“The day after reporting one of its worst quarterly financial results in history and after furloughing an additional 254 pilots (bringing the total to 606 pilots), United Airlines announced today that it has entered into what it calls an “innovativeâ€￾ partnership with Aer Lingus.



“Aer Lingus has advised the Irish press that this joint venture will operate an Aer Lingus aircraft with neither United nor Aer Lingus employees, under a separate operating certificate and under newly established wages and working conditions. Obviously, this partnership will be accomplished at the expense of United’s and Aer Lingus’ own pilots and other employees. This development, where United attempts to establish an airline operation without the use of United aircraft or employees, is nothing less than the outsourcing of jobs to an international company, and clearly demonstrates that this management continues to make business decisions without regard to its pilots and other employees.



“The United pilots are exploring every option to put an end to the company’s blatant disregard and lack of loyalty to the United Airlines brand.â€￾

 

[Globetrotter11]

Some more info...


"Aer Lingus is extending its relationship with United Airlines on some long-haul services between Europe and the US, and has held out the prospect of forming a new joint venture company with the US airline.

The two airlines will launch a daily service between Washington and Madrid from March 2010. Additional routes may be made available from next year for services to begin in Summer 2011.

Aer Lingus said that further expansion and development of the partnership's activities will be jointly assessed and agreed by the partners and may develop into a 'broader and deeper' joint venture, in which Aer Lingus would have a controlling interest.

The airlines expect the new partnership to report a 'marginal' level of profit in the first year. Aer Lingus will provide three planes, which will be leased to the partnership, and the planes will have the Aer Lingus logo on the outside with joint branding inside.

Recruitment for the new partnership will be in the US. Tickets will be on sale in around six weeks."

 

[aredeeyou22]

Aren't there any protections in the UAL pilot or FA contracts against this type of flying? This is unbelievable and needs to be stopped now, before it spreads further throughout United, and other carriers as well...

 

[767jetz]

ALPA legal is assessing all legal aspects to challenge such an arrangement as well as tapping assets within the new administration to block this. Do not think for a moment that the new White House will look favorably on a scheme to circumvent labor and outsource jobs internationally.

This will get interesting. Expect a very aggressive fight on all fronts. Stay tuned...

 

[whatkindoffreshhell]

This hookup is a result of the 'open skies' agreement. Other airlines are already doing it.

The route is going to utilize EI's A330s. More revenue for UA.

If UA had the equipment why not do it themselves?

 

[FWAAA]

What a dumb idea. UA is facing monumental troubles; declining cash, declining premium cabin demand due to the current economic meltdown and, like most legacy airlines, unhappy workforce. So what does it do? Announces a partnership with EI to form a joint venture to fly IAD-MAD? WTH? Reminds me of the fractional jet idea dreamed up a few years ago at UA HQ. Why focus on your core troubles when you can daydream about nonsensical ways to anger your employees instead?

 

[whatkindoffreshhell]

The potential has been there for years, didn't the union leaders see this coming?

Ryan Air has been attempting to takeover EI for years and the Irish gov't is resisting because they claim this will reduce competition in the Irish market.

So EI and UA are looking for incremental revenue wherever they can find it.

 

[767jetz]

If UA had the equipment why not do it themselves?

Because Tilton will do everything he can to outsource work to the lowest bidder, and direct some of that savings to bonuses for himself for doing such an "outstanding" job.

UA said in their own press release that it adds profit that they could not do flying it themselves. (ie: he needs to do it on the cheap.) UA does have the assets to do this flying if they wanted to. They are more interested in parking airplanes and furloughing employees.

 

[Winglet]

Tilton isn't interested in running an airline. He and his henchman are interested in lining their own pockets and bleeding UAL till there's nothing left. The question is how much longer can Tilton continue to insult his employees before the employees decide it's just not worth it and burn it down.

 

[ual06]

Years ago, I heard it said, "This would be a great place to work, if only we did not have to deal those darn airplanes and passengers".