November 30, 2005
Aloha Pilots Reach Agreement
HONOLULU -- The Aloha pilots of the Air Line Pilots Association (ALPA) announced yesterday that they have reached a tentative agreement with management on a new contract, bringing Aloha Airlines one step closer to emerging from bankruptcy by the end of the year.
Upon ratification by the ALPA membership and approval of the U.S. Bankruptcy Court, the agreement covering 270 Aloha pilots would become effective and run through April 30, 2009.
The tentative agreement was unanimously endorsed by the pilots’ Master Executive Committee (MEC), who also announced their support of Aloha's Plan of Reorganization. The MEC will be recommending ratification of the agreement to its members who will be voting over the next several days.
"We look forward to working with Aloha's new investors who bring renewed energy and enthusiasm and the promise of growth for Aloha Airlines and for the benefit of the traveling public," said David Bird, chairman of the Aloha MEC.
"We congratulate our pilots for working round the clock to reach a consensual agreement and to advance our reorganization plan another step forward," said David A. Banmiller, Aloha's president and chief executive officer. "This brings the pilots together with the more than 3,000 other employees who support what we are doing at the new Aloha and are moving in step with our shareholders, the Yucaipa Companies, Aloha Aviation Investment Group and the Ching and Ing families."
Although details were not disclosed, Banmiller said the agreement between Aloha and ALPA provides for the possible termination of the pilot's defined-benefit plan. However, the agreement also contains a unique provision whereby the plan could be permanently frozen, or restored to frozen status, in the event that Congress enacts legislation to allow the nation's airlines to amortize their funding liabilities over a 20-year period.
With the tentative agreement, ALPA becomes the fifth and final of Aloha's bargaining units to reach new agreements and support the company's Plan of Reorganization. The Association of Flight Attendants ratified a new contract on Nov. 29. International Association of Machinists and Aerospace Workers (IAM) Lodge 141 and Lodge 142, and a unit of the Transport Workers Union (TWU) earlier ratified new contracts. All of the contracts will take effect upon approval of the Bankruptcy Court and run through April 30, 2009.
The Air Line Pilots Association, International, is the world’s largest pilots union, representing 64,000 pilots at 41 airline carriers in the United States and Canada. Visit the ALPA website at http://www.alpa.org.
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