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This past week saw the arrival of the first of seven B737-300SFs. Excerpts from a Company press release follow:

Kitty Hawk is the North American launch customer for the 737-300SF conversion by Israel Aircraft Industries (IAI), Bedek Aviation Group. IAI is one of the premier passenger-to-cargo aircraft conversion and aircraft maintenance companies in the world. Kitty Hawk has also entered into a long-term strategic partnership with IAI for maintenance and support of the aircraft engines, components and landing gear.

Kitty Hawk has a contract to lease seven Boeing 737-300SF aircraft from GE Capital Aviation Services (GECAS). The aircraft will be delivered throughout 2005. The 737-300 SF is the freighter version of one of the best-selling and most popular commercial passenger aircraft of all time. The two pilot, twin-engine aircraft are powered by CFM-56 jet engines.

"The arrival of this first 737-300SF is a significant step that will enhance Kitty Hawk's fleet and further prepare our company for the future," said Robert W. Zoller, Kitty Hawk's president and CEO. "The Boeing 737-300SF is a tremendous addition - it is a very fuel efficient, reliable and environmentally friendly aircraft, capable of achieving proposed federal Stage 4 noise regulations."

The 737-300SF possesses a modern digital technology flightdeck and expected lower operating and maintenance costs. The new aircraft will allow Kitty Hawk Aircargo to conserve fuel, possibly open additional new markets, and begin to transition the company toward a more up-to-date, scalable aircraft platform.

In addition, Kitty Hawk will install FAA-approved FuelMizer modification kits from AvAero on each of its new 737-300SF aircraft. Kitty Hawk will be the all-cargo launch customer for the FuelMizer modification. Kitty Hawk expects to realize as much as an additional four percent fuel savings from the FuelMizer system.

One of our Crewmembers lost his wife to a protracted cancer battle last night. Our sincere condolences go out to Kim Post and his family. Kim used all his remaining vaction and sick leave. The MEC has worked with Management to launch a program where Crewmembers will have the ability to donate vacation days to Kim. Please consult your email for a KHA 111 Fastread and the MEC Forum on the barkboard containing more detailed information.

Late last week, Central Air Safety Chairman (CASC) Mike Ash and the MEC took the FAA and the Company to task on flight and duty time issues relating to 'heavy crewing'; to keep a trip going longer than normal FAA duty regulations would allow. This was a common practice several years ago and recently has been reinstituted and involves placing extra crewmembers on the flightdeck. The company had been using a rather liberal interpretation of the regulations related to heavy crewing and the Association felt strongly that this was an unsafe practice. ALPA's legal team responded very quickly to our requests and we were able to convince the company and our FAA Principal Operations Inspector (POI) that the way that they were interptreting the regulations was in fact incorrect.

"I'm extremely pleased by the way this all worked out", stated Capt. Mike Ash, CASC. "ALPA was on the ball and they had answers back to us within fifteen minutes."

The FAA rule is that a 'heavy crew', or a crew with relief pilots onboard, must be given at least 16 hours off if their time aloft exceeds 8 hours. Memos and GOM revisions to follow.

"We're always concerned with the bottom line", stated MEC Vice Chairman Bill Kesel, "but our primary and critical concern is with the safety of our Crews. Trying to schedule flight crews with the bottom line as a rule has proven to be very costly."

The Company was notified today of the Association's desire to arbitrate five grievances. They are as follows:

KHA-01-04(Warinner)
KHA-05-04(MEC)
KHA-07-04(Ash)
KHA-15-04(MEC/Kesel)
KHA-16-04(Weiser)

(For details on these grievances, please consult the barkboard's grievance forum)

According to Sections 21.G and H, an arbitrator must be selected within 30 days of the request. Several of these grievances could potentially change the quality of life and compensation of the crewmembers employed at Kitty Hawk, if the Association wins. More news will be reported as it develops.

Few issues in the airline industry have fueled as much discussion as the FAA Age 60 Rule. Since it was established by the Federal Aviation Administration (FAA) more than 40 years ago, airline managements, government agencies, and members of Congress have weighed in on the subject. ALPA has also been deeply involved in the debate on the Age 60 Rule, but it has been many years since an effort was made to educate the membership and determine their opinions on the Rule.

During its September 2004 meeting, the ALPA Executive Board voted unanimously to begin a thorough review of ALPA's position with respect to the FAA Age 60 Rule. This review includes a communications effort to educate the U.S. ALPA members about the rationale for the FAA Age 60 Rule, ALPA's policy on Age 60, and the possible implications of increasing the mandatory retirement age.

This comprehensive communications initiative includes a newsletter to U.S. members called IN FOCUS, articles in Air Line Pilot, and a special "Age 60" site on ALPA's members-only crewroom.alpa.org. The program will also include a poll of U.S. ALPA members in late February/early March 2005, and will culminate with a status report to the May 2005 Executive Board.

For more information on Age 60, visit crewroom.alpa.org and click on the "IN FOCUS: The FAA Age 60 Rule" link. If you have a specific question about the FAA Age 60 Rule or ALPA's policy related to the Rule, or would like to submit your comments, please send an e-mail to: age60communications@alpa.org.

UPS to buy Menlo arm from CNF
Cash and debt deal adds air freight routes
By Padraic Cassidy, CBS MarketWatch.com
Last Update: 4:16 PM ET Oct. 5, 2004
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NEW YORK (CBS.MW) -- United Parcel Service is buying Menlo Worldwide Forwarding, a global freight-shipping business and subsidiary of CNF, for $150 million in cash and the assumption of debt, the companies said Tuesday.
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CNF (CNF: news, chart, profile) said it would book a $260 million loss on the sale of Menlo Worldwide, formerly known as Emery Worldwide, which recorded $1.9 billion in gross revenue during 2003.

Atlanta-based UPS (UPS: news, chart, profile) will also assume $110 million in long-term debt of the 8,000-employee company, which provides heavy air freight and ocean shipping services, including customs brokerage.

Shares of CNF rose 6 percent to close at $44.63 Tuesday; UPS stock closed down 0.4 percent to $76.97.

CNF will continue to own and operate Menlo Worldwide Logistics, Menlo Worldwide Technologies, Vector SCM and Con-Way Transportation Services.

UPS approached CNF about buying Menlo Worldwide Forwarding, although all of the CNF businesses had been on the block at the time, CNF interim chief W. Keith Kennedy said in a conference call with analysts.

"We are not marketing anything at this time," he added. "Before, we looked at every potential transaction we could find. Our focus is trying to stabilize the units we've got and grow them."



Kennedy said that CNF did not intend to make acquisitions with the proceeds.

The charge for the write-downs on Menlo Worldwide equate to about 3 cents or 4 cents per share for several quarters into 2005.

CNF, based in Palo Alto, Calif., said it would reschedule its Oct. 18 third-quarter financial results and subsequently break out the results on the basis of continuing and discontinued operations. Executives set no date but said they hoped earnings would be announced by the end of October.

As a result of the deal, UPS said it will introduce overnight, two-day and deferred heavy air-freight services in North America.

Morgan Stanley analyst James Valentine called the purchase price "a rounding error" for UPS that would not affect its earnings estimates. The acquisition fills out UPS' freight-forwarding capabilities with domestic and transatlantic service, and at the same time rids CNF of an underperforming division, Valentine said.

The Membership in attendance at this morning's Council meeting in FWA have elected the following Crewmembers to represent them for the period from November 1st to March 1st, 2005:

Captain Rep: Captain Dean Warinner

FO Rep: John Keller

SO Rep: Bill Kesel

From these three, Captain Warinner was elected MEC Chairman, Bill Kesel was elected MECVC and John Keller was elected MEC Sec/Treas.

The following Crewmembers were officially nominated for election, to be carried out under ALPA's Constitution and Bylaws:

Captain Reps: Captains Dean Warinner and Robert Grimm

FO Reps: Avery Bates and Joseph Palazzolo

SO Reps: Bill Kesel

We will begin the formal voting process after ALPA verifies the nominations and will be conducted via the ALPA intranet and telephone voting proceedures.

Mediation will resume for three days in DFW, beginning this morning. Newly announced VP of Operations, Danny Clifton, will be participating. Captain Gothard, Bill Kesel, Martin Durkan, Joe Custer and ALPA Contract Administrator, Neal Davis, will be participating for the Association. Anitcipated agenda items will be grievances filed on Vacation Usage, travel day pay while on a Reserve Assignment, the assignment of Duty in addition to a Crewmember's Awarded Bidline and the Non Availability Period or NAP, while on a Reserve Assignment. For a full listing and status of grievances, please log on to the pilots only section of the barkboard and view the grievance forum. A more detailed description of the Mediaton will be made available after the session concludes. We hope to have this completed by Tuesday of next week. Stay tuned...

Negotiators for the Kitty Hawk Pilots, represented by ALPA, left the most recent round of meetings in a state of disappointment. "All we want, is for them to do what they said they were going to do", stated Joe Custer, Negotiating Committee Member. The recently signed 10 year labor agreement between Kitty Hawk Aircargo and its flightdeck Crewmembers contains a clause that allows for a period of continued negotiations after ratification.

At the request of new management, the pace of contract negotiations was greatly accelerated; culminating in a ratified agreement in October last year. Management threatened to shut down the airline portion of Kitty Hawk and subcontract the flying, if its Crewmembers would not sign a contract by the Fall deadline. "We worked hard to get it done, our pilots signed it and we all knew that there would be problems with it [the contract] for both sides", says Bill Kesel, Vice Chairman for the pilots' union. "That's why we've been continuing to negotiate." Most of the talks, according to Kesel, have been centered around compliance issues. "We haven't been asking for anything new... we're just trying to get them to comply with what we agreed to. It's not a problem until someone breaks out a calculator and realizes that to do this, it's going to cost more money. "

The MEC has been informed that the Company has chosen to cancel the next upcoming negotiation meeting, originally scheduled for March 22 and 23. The Association is extremely disappointed in this, in light of the fact that a strict meeting schedule was agreed upon. At the very least, we will seek to extend the period. We were very specific in the last meeting of the importance of each side upholding their commitment to meet on an established schedule.

Section 31.B states: "It is agreed by the parties to this Agreement there may be individual issues that have not been addressed in this Agreement. Both parties to this Agreement agree to meet on a regular basis to try and address these individual issues and may enter into Letters of Agreement to resolve these individual issues."

Up to this point, the Company's willingness to honor this section has been tepid. If necessary, we will pursue this to the full extent allowed under law.

Even though the Kitty Hawk Crew Members ratified their first Contract in October by an 81% margin, negotiations will continue into September. A provision in the Collective Bargaining Agreement (CBA) provides for a period of 6 months of continued bargaining on issues that were not given enough attention during the previous negotiating period. The time line for negotiations was greatly accelerated in the mid summer of 2003. Kitty Hawk's management infered that a signed CBA was a critical part of the Company's future success and the survival of the airline. The Crew Members responded with an affirmative vote.

Negotiations resumed this week in the Company's DFW headquarters, with one major difference. Kitty Hawk's Crew Members are now represented by the Airline Pilots Association, or ALPA, after completing a merger of their in house union, the Kitty Hawk Pilots Association (KPA) on January 1st of this year. Neither side had much experience in contract negotiations and this period of continued negotiations will serve to add clarifications and items that will make the administraton of the CBA easier for both parties.

Ken Johnson, Grievance Committee Chairman, will be giving brief seminars on the grievance process in the hub this Thursday and Friday mornings. It is likely, that Neal Davis, our ALPA Contract Administrator, will also be present to meet you and answer questions that you may have. Due to the Company's unfortunate lack of ability to comply with many basic pay and scheduling provisions, we have had an onslaught of inquiries by the Membership as to what their rights are under the CBA and what to do if they feel that they have been violated.

The grievance process is your legal recourse and it is crucial that you understand how it works. Please attend the seminars this week, if you are able. If unable to attend, the Grievance Committee will provide you with information that you need in an instructional document, which will be available shortly.

The KPA is no more, as of January 1st. We are now known as KHA Council 111, an ALPA carrier. We have a new hotline number, which will be updated at least weekly, by Association officers. Please take note and call the number regularly for the latest updates in information concerning meeting announcements, contract implementation issues and other important information! Click here to go to the pilots secure page for the hotline number.

The election results are now in for the interim Secretary/Treasurer. Martin Durkan will now be the interim Secretary Treasurer. The term for this office will run from the time of his swearing in to October of next year. Please offer your congratulations and support to Martin, as he begins his term of seving the Association!

Begin the new year with the benefits of ALPA membership! January 1, 2004 marks the effective date of ALPA representation for Kitty Hawk pilots. All active KPA members should complete the membership demographic form (titled “membership application”) and return it ASAP to ALPA Membership Services, 535 Herndon Parkway, Herndon, VA 20170. Additional copies of the form are located in the crew room in Ft. Wayne and can also be downloaded from this website.

Please note that the demographic form is not an application for membership—“Active” KPA members are automatically given “Active” membership status in ALPA. However, it is vital that you provide ALPA with this pertinent information so that ALPA can update its database and ensure you have access to all ALPA membership benefits, programs and communications.

Also, please be aware that you are obligated to pay ALPA membership dues effective January 1, 2004, regardless of whether you have returned the completed demographic form. If you currently are not participating in the dues check-off program and would like to pay your dues through payroll deduction, please contact Jonathan Wood, ALPA senior airline analyst at 888-FLY-ALPA (359-2572), select option #1, and enter extension #4167, or by e-mail at Jonathan.Wood@alpa.org.

A Reminder: The ballots for Interim Sec/Treasurer position must be received by Dec 22nd if mailed and by Dec 23rd in the KPA lock box in the hub. Replacement ballots are also available at the FWA hub. MEC representatives will be in FWA during this period.

ALPA applications are in the hub in FWA. ALPA has also sent copies to all Crewmembers on the seniority list, including furloughees. This application is not for the purpuse of joining ALPA. The KPA/ALPA merger agreement accomplishes this. However, it is very important that ALPA have updated information that was not collected by the KPA. Postage-paid envelopes are available in FWA. If you have not returned one of these apps, please do so before the 31st of this month.

Martin Durkan, Election Committee Chairman has information for you concerning the nominations and election of a new Interim Sec/Treas to replace Mike Males. The term of office will be from January first to October thirty-first. More info:


Nominations are being accepted for candidates to stand in the upcoming
election for the Second Officer Position on the Master Executive Council
(MEC) of the Kitty Hawk Pilots Association (KPA).

Nominations can be made by the following means:

1. KPA pilot meetings to be held in the FWA hub over the next two weeks
(details will be announced).

2. VIa the KPA mail box in the FWA operations area.

3. By mail (USPS) to the following address:
Kitty Hawk,
ATN: KITTY HAWK PILOTS ASSOCIATION,
12602 Global Dr,
Yoder, IN 46798.

Nomination forms will be available at the FWA hub to standardise the
nomination process.
A nomination can be also be made on any sheet of paper should a
nomination form be unavailable.

Closing date for the receipt of nominations will be Nov 28.

Ballots listing those second officers nominated will be mailed out to
KPA members on or about Dec 1.

 

 

 

Click Here for Video feed of the meeting for DSL Speed connections, or Here for dial up speed connections

Today in Reston VA, at the Fall ALPA Board of Directors Meeting, the ALPA Executive Board voted unanimously to merge with the Kittyhawk Pilots Association. The KPA was originally founded as a stop gap measure to be the collective bargaining agent for the Kitty Hawk Pilots after a turbulent period when, due to machinations of the International Brotherhood of Teamsters (IBT) with the AFL-CIO, squashed an unprecedented 93% write-in vote for ALPA, two years ago. The Kitty Hawk Pilots have reached a major milestone today in their quest for international representation and the availability of resources for safety, legality and the improvement of airline operations.

Captain Duane Woerth, President of ALPA, led a standing ovation for the Kitty Hawk Pilots during the afternoon session of the Executive Board meeting today in Reston, VA, after Bill Kesel, KPA Vice Chairman and John Keller, Jumpseat Coordinator and Merger Committee member gave short speeches before the assembly.

This is a major milestone for the Kitty Hawk Crewmembers! Along with the ratification of our first contract and the merger vote, you have accomplished a great deal in one month towards the future prosperity of Kitty Hawk and its pilot force.

Press Release Source: Air Line Pilots Association, International Follows:


Kittyhawk Pilots Association Members Vote to Merge with ALPA; Merger Finalized by ALPA Leadership
Tuesday October 21, 6:29 pm ET


WASHINGTON, Oct. 21 /PRNewswire/ -- The Executive Board of the Air Line Pilots Association, Int'l (ALPA) today unanimously approved the merger between ALPA and the Kittyhawk Pilots Association (KPA), completing the final step in the merger process between the two unions.

The agreement will go into effect January 1, 2004, with the full transfer of representational rights to ALPA. The Kitty Hawk pilots voted October 15 to merge their independent union with ALPA, with 81% voting to accept the proposed merger.

"For 72 years, ALPA has advanced the piloting profession and promoted aviation safety," said Capt. Duane Woerth, president of ALPA. "Our achievements are the direct result of our strength through unity, speaking with one clear voice to represent the collective interests of airline pilots. We are proud to include the Kitty Hawk pilots in that voice, and look forward to their contributions in shaping the future of our great Association," Woerth said.

The KPA Board of Directors approved the Merger Agreement on September 9, 2003, before releasing it to its membership for ratification. ALPA's Executive Board approval culminates the merger process. All KPA elected representatives will become ALPA representatives, forming the Kitty Hawk Master Executive Council (MEC), with KPA's chairman, Capt. Tom Gothard, serving as MEC chairman.

"Since 1998, Kitty Hawk pilots have sought to organize with ALPA. Now that the merger is complete, we anticipate taking advantage of ALPA's vast resources and its highly specialized staff," Gothard said. "We are extremely pleased that the terms of the merger met with the approval of our pilots, and we look forward to starting the new year as members of ALPA. Having recently ratified a new contract, ALPA's expertise, experience, and the support of its 66,000 members will be a great benefit to our pilot group," Gothard added.

The Merger Agreement provides ALPA membership for KPA members and seamless transition of KPA representation to the ALPA governance structure.

Kitty Hawk is the only large-scale scheduled service solely dedicated to forwarders, both domestic and abroad. Kitty Hawk pilots fly B-727 freighter aircraft servicing more than 50 major airports in the U.S. and Canada.

Formed in 1931, ALPA is the world's oldest and largest pilots union. ALPA's Executive Board is made up of the master chairmen from each pilot group within the Association. In addition to Kitty Hawk, ALPA represents 66,000 pilots at 42 airlines in the U.S. and Canada. Visit the ALPA website at www.alpa.org.

An independent accounting firm counted all the returned ballots today. The Contract was ratified by a vote of 81.9%. A simple majority was required for ratification. The signing and implementation of the contract has not yet been set, due to some editing and intent issues in the final draft. The Agreement will not come into force until after signing and implementation.

The ratification of this Contract by the KPA Membership has been touted as a major hurdle for the company in its moving ahead. With a long-term labor agreement in place, the company is able to show stability and will be a much stronger contender in the market place in terms of partnerships with lenders, aircraft lessors and other corporate entities.

To our members: Your vote of confidence was overwhelming and we can be proud that we have crossed this major milestone together! We anticipate good things in the future as we work together with the company to implement the Agreement. We have now given the company the stability it needs to become a more viable player in our industry. We sincerely hope that, by ratifying this Agreement, we have started down a new road of stability and prosperity; a road that leaves the past behind and unfolds toward a bright future for all of us.

The eligible membership of the Kitty Hawk Pilots has voted by 79.3% votes cast to merge with the Airline Pilots Association, or ALPA. The merger must be approved by the Executive Board, meeting in Washington, D.C. next week. After Approval, the merger is scheduled to be implemented by the first of the year, although it could be moved up as soon as Novemember 1st, by mutual agreement.

The MEC and the Merger Committee would like to thank all who have helped along the way!

Fellow Crewmembers, Please disregard the CONTRACT Ballot that you have received in the mail. It was sent out prematurely. We had hoped that a final draft would be ready to send to you concurrently, but after Company and KPA attorneys have reviewed it, we still have some negotiating to do. I apologize for the confusion. Do not disregard the ALPA Merger ballot that you will receive. This process will continue on as planned. KPA and Company negotiators will be meeting in the latter part of this week.

Company representatives will be in the hub on Monday night to answer questions you may have on the proposed agreement as it stands now and any other questions you may have for them. Tom Gothard and Mike Males will be in the hub all week to discuss issues that are being proposed in the contract. I will be in DFW with the Negotiating Committee from Wednesday through Friday.

ALPA representatives will be at the FWA Days Inn on Wed and Thurs to answer questions regarding the proposed merger of our two Associations. Transportation will be provided from the hub to the Days Inn.

When the final draft is ready and approved, we will be sending each eligible member a copy, along with a ballot.

Fraternally,

Bill Kesel, MEC Vice Chairman, Communications Chairman

Steve Markhoff, General Counsel of Kitty Hawk Inc, and Kim Wiemuth, Director of Team Resources, will be in the FWA hub on Monday night (Tues. Z) and Tuesday night (Wed. Z) to answer your questions on the upcoming contract proposal. The contract proposal, while in final draft review, is not finalized. Negotiating Team members and MEC will also be present. We strongly encourage you to attend and ask questions and give your input. This will be a preliminary meeting and your input will be vital. Do not miss this meeting, if you are in the hub!

Kitty Hawk is moving its operations to Aeroground in LAX. The Kalitta 'shanty town' will soon be defunct. The airport authority in LAX had the odacity to raise the rent and then ask Kitty Hawk to pay for improvements to a facility that was basically up to 1930's standards. The KPA stands with the company in protest. Bob Zoller, CEO of Kitty Hawk, has put out a press release.

The down side is this: Kitty Hawk employees manning the station will be put out of work. Kim Wiemuth, Director of Team Resources, informed us that displaced employees would be given preferential hiring at the new facility. Kitty Hawk does not have absolute control over who is hired to fill new positions at the new facility.

We expect operations to be seamless. If you are flying out of the LAX station and encounter problems, please pass this information on without hesitation.

This promises to be a positive development for KHA's future. Security issues that may have been lacking, will now be fixed. This fact alone, will secure our customer's freight and our aircraft.

MEC Chairman, Tom Gothard, will convene a meeting in the hub at 0830Z. The meeting will be on Tues nite/Wed morning. Tom will discuss pertinent news, negotiations and the status of the ALPA merger. If you are unable to attend and would like a recap of the meeting, please contact an MEC member or email the bark.

Bob Zoller, CEO of Kitty Hawk, has informed the MEC that he will be in FWA on Monday and Tuesday, the 15th and 16th to talk to Crew Members. He is slated to present his plan for Kitty Hawk's future, business and fleet plans. We met with Bob on two occasions this past week to discuss negotiations, and several concerns relating to the present environment. Bob was well informed on all the issues that we raised and we feel that you will find the upcoming meeting informative. Be prepared with well thought out questions!

Clark Stevens, President of Kitty Hawk Aircargo, has been became another victim of a 'reduction in force' on Friday. In a company release, out today, we learn that Clark has moved on to other opportunities and that his position will not be immediately filled. Those reporting to Mr. Stevens will now report directly to Bob Zoller, CEO of Kitty Hawk , Inc.

Clark Stevens held the position of President for over 4 years and was appointed by Tom Christopher, Kitty Hawk's founder and former CEO. In one of Clark's first communications to the pilot group, he emphatically stated that home basing would be kept in place at all costs. This promise evaporated in January of 2002 when an out-based system was imposed; placing the burden of all travel and housing costs on the individual crew member. Paid housing was returned in March of this year.

The KPA is presently involved in contract negotiations with the company and Mr. Stevens was the main negotiator for KH. At the last session, compensation, schedule and rest rules where left on the table with no future date set to resume on these issues. It is not known at this time, who will replace Mr. Stevens as lead negotiator for the company. 'Ding-dong, the witch is dead......'gineer. Great picture! You 'da man!

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