Tag: court (Page 2 of 3)

Atlas Air and Southern Air Prevail in Appeals Court Ruling Against Teamsters Pilot Union

November 22, 2019 / WIL BALDWIN

PURCHASE, N.Y., Nov. 21, 2019 (GLOBE NEWSWIRE) — Atlas Air Worldwide Holdings, Inc. (AAWW) today confirmed that its subsidiaries Atlas Air, Inc. and Southern Air, Inc. have prevailed in another legal dispute with the union that represents its pilots in ongoing negotiations, the International Brotherhood of Teamsters.

The decision by the U.S. Court of Appeals for the Second Circuit affirms a March 13, 2018, decision by the Southern District Court of New York compelling the Teamsters to arbitrate whether the merger provisions in Atlas Air and Southern Air’s collective bargaining agreements apply to the bargaining process. Today’s decision, as well as two binding decisions by arbitrators rendered in favor of both Atlas Air and Southern Air this summer, have made clear that IBT must engage in the current Atlas Air and Southern Air collective bargaining agreements’ expedited and defined process for achieving a joint collective bargaining agreement.

In a separate labor-related decision rendered in July 2019, the U.S. Court of Appeals for the District of Columbia unanimously affirmed a federal district court ruling in November 2017 that ordered the union to stop an intentional and illegal work slowdown by Atlas Air pilots in violation of the Railway Labor Act. The unanimous ruling from a three-judge panel upheld the lower-court order that blocked the union from continuing to engage in improper activities such as excessive sick calls on short notice or refusing to volunteer for open time.

“With these decisions behind us, it’s time for the union to honor its obligations under the collective bargaining agreements and these binding decisions. Specifically, the union has an obligation to produce an integrated seniority list and engage in direct bargaining for a defined and limited period of time. In ongoing negotiations, the union has yet to provide us with a comprehensive economic proposal covering pay and benefits for evaluation. We remain committed to working collaboratively with union leaders to efficiently negotiate and complete the contract,” said William J. Flynn, Chairman and Chief Executive Officer, Atlas Air Worldwide.

For more information about the contract negotiations process and updates, please visit AtlasAir5YPilots.com and follow @AtlasAir5Y on Twitter.

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IAG Ups Bet on Latin America with Air Europa Takeover

November 4, 2019 / WIL BALDWIN

* Buys Air Europa for 1 bln euros

* To be funded by external debt

* Shares rise more than 2%

* To be run by Iberia CEO

* Regulators may set requirements -analysts

Nov 4 (Reuters) – IAG, the parent of British Airways and Spain’s Iberia, announced a 1 billion euro ($1.12 billion) takeover of Spain’s Air Europa to boost its presence on routes to Latin America and the Caribbean.

The deal follows a setback in Latin America for IAG after Chile’s Supreme Court ruled against a plan that would have allowed it to bolster cooperation with partners in the oneworld airlines alliance.

**BA parent IAG ups bet on Latin America with Air Europa takeover**
Ryanair Chief Executive Michael O’Leary attends a Reuters Newsmaker event in London

Chile’s LATAM Airlines in September then announced it planned to leave the alliance, opting instead for a tie-up with SkyTeam member Delta Air Lines.

IAG shares initially rose more than 2% following the Air Europa takeover announcement but some analysts said IAG may have to shed routes in order to win regulatory approval.

IAG shares were up 1.2% at 1315 GMT.

Ryanair CEO Michael O’Leary said his company will ask the UK’s market watchdog to force IAG to make divestments as part of its Air Europa takeover, a deal he said would be bad for competition.

“Potential remedies, perhaps in the form of slot release or behavioural restrictions, may be required and these could impact the potential synergies,” an analyst at Liberum wrote in a note.

IAG also owns carriers Iberia Express, Level, Ireland’s Aer Lingus and Vueling.

“We are not convinced that having just another brand platform is the optimal move, and could see it potentially combining with Level, Vueling or potentially Iberia Express after some time,” analysts at Bernstein said.

FILE PHOTO: An Air Europa-branded Boeing 737 MAX aircraft is seen grounded at a storage area in an aerial photo at Boeing Field in Seattle

Air Europa serves 69 destinations, including long-haul routes to the Americas and the Caribbean. It had a fleet of 66 aircraft at the end of 2018.

Air Europa’s Spanish parent company Globalia earlier this year received authorisation from the Brazilian government to explore the possibility of flying domestic routes within Latin America’s largest economy.

It is unclear if that authorisation will remain with Globalia or be transferred to IAG.

Air Europa will initially keep its brand and as it gets integrated into the existing hub at Madrid it will be a standalone operation run by Iberia boss Luis Gallego, IAG said.

It will also withdraw Air Europa from the SkyTeam alliance once the deal is completed. Air Europa has a joint venture with Air France-KLM.

“This is of strategic importance for the Madrid hub, which in recent years has lagged behind other European hubs,” said Gallego, adding that Madrid had the potential to serve as a gateway between Asia and Latin America.

IAG said it expected the Air Europa deal, which will be funded through external debt, to close in the second half of next year and for it to add to its earnings in the first full year after the closure.

($1 = 0.8951 euros) (Reporting by Yadarisa Shabong in Bengaluru; additional reporting by Andres Gonzalez in Madrid and Marcelo Rochabrun in Sao Paulo, editing by Patrick Graham and Jason Neely)

An Air Europa Boeing 737 airplane takes off at the airport in Palma de Mallorca

Left-Wing Brazil Political Party Sues to Block Boeing-Embraer Deal

October 16, 2019 / WIL BALDWIN

RIO DE JANEIRO (Reuters) – A left-wing political party on Wednesday filed a lawsuit to block the sale of 80% of Brazilian planemaker Embraer SA’s <ERJ> commercial jet division to Boeing Co <BA> for $4.2 billion (3.3 billion pounds), arguing it will harm Brazil’s sovereignty.

The deal, which would position Boeing to compete more directly with Airbus SE <EADSY> in the market for mid-sized passenger planes, has faced significant left-wing opposition largely because Embraer is seen as a strategic company for Brazil’s national security.

So far, a handful of lower court decisions temporarily blocking the deal have been overturned by appeals court judges. The government has authorized the deal and Embraer’s shareholders are all for it.

But the latest lawsuit, filed by Brazil’s Democratic Labor Party (PDT), underscores that there is still a political risk that could potentially unravel the agreements reached so far between Boeing and Embraer. The PDT’s leader, Ciro Gomes, has staunchly opposed the sale of Embraer’s commercial jet division to Boeing.

Embraer declined to comment on the lawsuit.

The proposed deal with Boeing was first announced in July 2018.

Boeing and Embraer are waiting for antitrust approval to finalise the deal, including intense scrutiny from European regulators. They expect that to happen in early 2020.

(Reporting by Rodrigo Viga Gaier in Rio de Janeiro; Editing by Matthew Lewis)

Spirit Airlines Must Face ‘Gotcha’ Carry-on Bag Fee Lawsuit

September 12, 2019 / WIL BALDWIN

NEW YORK (Reuters) – A federal appeals court revived a lawsuit by Spirit Airlines passengers who said the low-cost carrier blindsided them by imposing unexpected carry-on bag fees on tickets bought through Cheapoair, Expedia, Priceline and Travelocity.

The 2nd U.S. Circuit Court of Appeals in Manhattan said 22 passengers could sue for breach of contract because there was no evidence that Spirit promptly notified them about the fees, and there were “ambiguities” in the prices they would pay.

Spirit and its lawyers did not immediately respond to requests for comment.

Compared with many carriers, Spirit relies more on ancillary fees to offset the financial drag from lower base fares.

The plaintiffs accused the Miramar, Florida-based carrier of knowing that its online travel agents hid the “gotcha” bag fees they would have to pay at the airport.

They said these fees often exceeded the cost of their tickets, and totaled millions of dollars a year.

Spirit countered that federal law precluded the lawsuit, and that its “contract of carriage” specifically provided that a passenger could take one carry-on bag into the cabin, for a fee.

The appeals court returned the case to U.S. District Judge William Kuntz in Brooklyn, who had dismissed it last November.

“This is a great victory for air travelers nationwide,” the plaintiffs’ lawyer John Hermina said in an interview. He said his clients will pursue their case in the district court.

On Tuesday, Spirit advertised carry-on bag fees for an Oct. 1 flight to Fort Lauderdale, Florida, from New York’s LaGuardia Airport ranging from $28, if booked on its website, to $65, if paid at the gate. Base fares ranged from $26 to $121.99.

The case is Cox et al v Spirit Airlines Inc, 2nd U.S. Circuit Court of Appeals, No. 18-3484.

(Reporting by Jonathan Stempel in New York; Editing by Richard Chang)

American Airlines Mechanic Charged with Alleged Sabotage of Plane Amid Union Dispute

September 5, 2019 / WIL BALDWIN

WASHINGTON, Sept 5 (Reuters) – An American Airlines mechanic was on Thursday charged with purposely damaging an aircraft in July amid a dispute between the airline and its mechanics union involving stalled contract negotiations.

Pilots of a flight from Miami to Nassau, Bahamas on July 17 aborted take-off plans after receiving an error message involving the flight computer, which reports speed, pitch and other data, according to a criminal complaint filed in U.S. District Court of Southern Florida.

It said after returning to the gate for maintenance, a mechanic discovered a loosely connected pitot tube that measures airspeed and connects directly to the flight computer.

A later review of video surveillance footage before the flight captured “what appears to be the sabotage of the aircraft” by a man walking with a limp, the complaint said.

When suspect Abdul-Majeed Marouf Ahmed Alani was interviewed, he told law enforcement he was upset at the stalled contract between the union and American, which he said had affected him financially, according to the complaint. It said Alani claimed to have tampered with the aircraft to cause a delay or have the flight canceled in anticipation of obtaining overtime work.

Unions have complained that American is trying to outsource more maintenance jobs, a move American has indicated is necessary to cover increased wages.

A U.S. federal court last month issued a permanent injunction against American’s mechanics union, which the airline had accused of illegal slowdowns it said had devastated its operations during the peak summer travel season.

A spokesman for American said the airline had an “unwavering commitment” to safety and security and had placed passengers on the July 17 flight subject to the criminal complaint on another plane to get to their destination.

“At the time of the incident, the aircraft was taken out of service, maintenance was performed and after an inspection to ensure it was safe the aircraft was returned to service,” the spokesman said. “American immediately notified federal law enforcement who took over the investigation with our full cooperation.”

The Miami Herald reported that Alani is set to make an initial court appearance on Friday. Court records did not indicate if Alani had an attorney.

The U.S. federal court order last month prohibits employees from “calling, permitting, instigating, authorizing, encouraging, participating in, approving, or continuing any form of disruption to or interference with American’s airline operations,” including a refusal to accept overtime or complete any maintenance repairs in the normal course of work.

(Reporting by David Shepardson; Additional reporting by Tracy Rucinski in Chicago; Writing by Jamie Freed; Editing by Christopher Cushing)

Interjet Denies That it’s in Technical Bankruptcy

September 3, 2019 / WIL BALDWIN

IT IS NOT TRUE THAT INTERJET IS IN TECHNICAL BANKRUPTCY

The handling of the information published by Bloomberg is irresponsible.
The news agency made a misinterpretation of the judicial review filed by Interjet in its legal dispute with the Internal Revenue Service of Mexico.

Mexico City, August 30, 2019.- Interjet categorically denies that it is bankrupt as published by the Bloomberg news site. The news agency made a misinterpretation of the constitutional claim filed by the airline in the dispute that it holds with the Internal Revenue Service of Mexico (SAT).

Bloomberg had access to a file that by law is not supposed to be public. In a judicial dispute, the only persons entitled to consult the records are those authorized by the parties involved in the trial.

At no time, the company has recognized the existence of a technical bankruptcy as this media outlet states.

It should be noted that bankruptcy can only be declared by court order, and cannot be self-imposed by the debtor or any other entity. It’s a legal process through which the insolvency of a company has to be proved. This is not the case of the current situation of Interjet because the company continues paying its debts.

Bankruptcy cannot be declared by a company or by an individual, and this determination corresponds to a court.

Interjet reserves its right to pursue any available legal actions against Bloomberg.

Lufthansa, Deutsche Bahn Settle Air Cargo Dispute

August 30, 2019 / WIL BALDWIN

German flag carrier Lufthansa and German national railway Deutsche Bahn have reached agreement on a long-festering dispute concerning an air cargo cartel.

The settlement was announced Aug. 26, although details are being kept confidential by mutual agreement.

The settlement ends a dispute before the Cologne regional court that has been ongoing since 2013.

Settling parties are DB Barnsdale, a wholly owned subsidiary of Deutsche Bahn, and Lufthansa Group member companies Lufthansa Cargo, Swiss International Air Lines and Deutsche Lufthansa.

Click the link for the full story! https://finance.yahoo.com/news/lufthansa-deutsche-bahn-settle-air-170533046.html

Rostec Ready for 737 MAX Out of Court Deal with Boeing

August 28, 2019 / WIL BALDWIN

MOSCOW (Reuters) – A unit of Russian conglomerate Rostec said on Tuesday it was ready for an out-of-court settlement with Boeing over its order for 35 Boeing 737 MAX jets, a spokesman for Rostec’s subsidiary Avia Capital Service told Reuters.

Boeing MAX 737 jets have been grounded worldwide and airlines are cancelling multimillion contracts following crashes in October and March that killed 346 people.

Earlier on Tuesday, Rostec said its unit had filed a lawsuit in the United States to cancel its order for the 35 MAX jets. The Financial Times, which first reported the move, said Avia Capital Service gave Boeing a cash deposit of $35 million.

A spokesman for Avia Capital Service told Reuters that delivery of the jets was first scheduled for October 2019 but was moved to March 2022. The Rostec unit had paid Boeing a deposit and was suffering losses from non-delivery, he said.

“If Boeing executives show a good will, we are ready to hold talks and find a mutually-beneficial out-of-court settlement for compensation of the losses we have suffered,” he said.

He added that the jets were ordered for a number of Russian air companies, including domestic low-cost firm Pobeda, a unit of the state carrier Aeroflot.

Russia is mainly using Boeing and Airbus jets for passenger flights, with a number of domestic airlines also adding Russian-made regional Sukhoi Superjet aircraft to their fleets.

The Rostec subsidiary now wants the deposit to be returned by Boeing with interest, along with $75 million in “lost profit” and about $115 million in compensatory damages, plus “several times the amount” in punitive damages, the FT said.

Rostec declined to provide further details about the lawsuit.

(Reporting by Gleb Stolyarov; writing by Anton Kolodyazhnyy and Tom Balmforth; Editing by Sherry Jacob-Phillips/Katya Golubkova and Emelia Sithole-Matarise)

British Airways Pilots to Strike for 3 Days in September

August 24, 2019 / WIL BALDWIN

LONDON, Aug 23 (Reuters) – British Airways pilots are to go on strike for three days in September, their union said on Friday, in a dispute over pay that could disrupt the peak summer holiday season.

Last month, the pilots overwhelmingly voted for industrial action and the airline, which is part of IAG, failed in a court bid to stop them.

“The British Airline Pilots Association (BALPA) has today given notice to British Airways that it will call on its members to strike on 9th, 10th and 27th September 2019,” the union said in a statement.

“It is clear, following discussions with members over the last few days, that BA’s most recent offer will not gain the support of anywhere near a majority of its pilots.”

British Airways said the strike action was unjustifiable as their pay offer was fair and that the strikes would destroy the travel plans of tens of thousands of customers.

“We are now making changes to our schedule. We will do everything we can to get as many people away on their journeys as possible,” the airline said in a statement.

“However, it is likely that many of our customers will not be able to travel and we will be offering refunds and re-bookings for passengers booked on cancelled flights.”

The airline said it was exploring options to supplement its fleet with aircraft and crew from other airlines, known as wet-leasing, and working with partner airlines to schedule larger aircraft to take more customers.

(Reporting by Alistair Smout; editing by Stephen Addison)

African Court Impounds Tanzanian Airplane

August 24, 2019 / WIL BALDWIN

DAR ES SALAAM/JOHANNESBURG, Aug 24 (Reuters) – South African authorities impounded an Airbus 220-300 aircraft leased by Tanzania’s national flag carrier following a court application by a retired farmer who is owed compensation by the Tanzanian government, the farmer’s lawyer said.

The plane had been scheduled to fly from the Oliver Tambo International Airport in Johannesburg, South Africa, to Dar es Salaam, Tanzania on Friday, but was seized on an order issued by the Gauteng High Court in Johannesburg, Tanzania’s transport ministry said in a statement on Friday.

Roger Wakefield, of Werksmans Attorneys, said his client, an elderly farmer who asked not to be named, was owed $33 million, including interest, in compensation from the Tanzanian government after his land in the country was expropriated several decades ago. The farmer was subsequently awarded the compensation in an arbitration, he said.

Wakefield said the only way Tanzania could secure the release of the plane was if it put up security or paid the debt.

A Tanzanian government spokesperson was not immediately available for comment.

Calls to the High Courts in Gauteng province went unanswered outside of usual business hours.

Speaking by phone to Reuters, Wakefield said the plane was impounded in line with South African and international laws allowing for an asset owned by a foreign entity to be attached to a case related to a foreign arbitration award.

The plane was chosen because there is evidence it is owned directly by the Tanzanian government and its value is commensurate with the amount owed to the farmer, who was born in Namibia, he said.

While the Tanzanian government has acknowledged it owes the farmer money, has previously made some payments and promised to pay the rest, it has not made a payment since around 2014, Wakefield said.

The plane is leased by loss-making state carrier Air Tanzania Company Limited (ATCL).

President John Magufuli has personally taken charge of the revival of the airline, spending hundreds of millions of dollars purchasing eight new planes since 2016.

The airline’s existing fleet, which is leased from the state-run Tanzania Government Flight Agency (TGFA), includes one Boeing 787-8 Dreamliner, two Airbus A220-300 jets and three DHC Dash 8-400 aircraft, formerly known as the Bombardier Q400 turboprop.

ACTL managing director Ladislaus Matindi told Reuters earlier on Saturday that the impounded plane was an Airbus 220-300, and arrangements had been made for its passengers to use another plane for their planned flight.

Tanzania has pinned hopes on the revival of the national airline to turn the country into a regional transport hub and boost the tourism sector, its biggest foreign exchange earner.

In 2017, a Canadian construction firm seized one of Tanzania’s new Q400 turbo-prop planes in Canada over a $38 million lawsuit related to a compensation ruling by the International Court of Arbitration.

The Q400 was released in March 2018 after Magufuli sent the country’s prime minister and attorney general to Canada to negotiate its release. Aviation sources said the government reached a financial settlement to secure the aircraft.

(Reporting by Fumbuka Ng’wanakilala in Dar es Salaam and Emma Rumney in Johannesburg Writing by Hereward Holland and Emma Rumney Editing by Angus MacSwan and Frances Kerry)

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