National Mediation Board Releases World Airways, IBT Pilots From Mediation; Cooling-Off Period Beginstitle
PEACHTREE CITY, Ga., Dec. 29 /PRNewswire-FirstCall/ -- World Airways, a
wholly owned subsidiary of World Air Holdings, Inc. (Nasdaq: WLDAE), announced
today that the National Mediation Board (NMB) has released the company and its
pilots, represented by the International Brotherhood of Teamsters (IBT), from
the mediation process that began in January 2004.
The NMB issued notice of the release Dec. 28, 2005, initiating a 30-day
cooling-off period before either party can engage in self-help. Both the
company and the pilots union negotiating team had requested to be released
from mediation after the negotiating team rejected the companys final offer.
The company has 430 pilots operating wide-body passenger and cargo aircraft
for its U.S. military and commercial customers. The pilots contract has a
provision that military flying would continue uninterrupted if a union work
stoppage were to occur at the end of the cooling-off period, which expires at
midnight, Jan. 27, 2006.
Negotiations have been proceeding for more than two years, since the
contract became amendable in June 2003. The pilots rejected an earlier
tentative agreement in March 2004. The recent rejected proposal included a
one-time signing bonus, annual pay increases over three years, profit sharing,
major improvements in working conditions and further improvements in most of
the sections of the contract under negotiation, including job security
concerns.
"We believe we made a fair and equitable offer to bring the negotiation
process to a successful conclusion, especially in an airline industry
environment that is experiencing massive concessionary agreements," said
Charlie McDonald, World Airways chief operating officer. "Over the next 30
days, we remain committed to continuing to work with the IBT."
World Airways, a wholly owned subsidiary of World Air Holdings, Inc., is a
U.S.-certificated air carrier providing customized transportation services for
major international passenger and cargo carriers, the United States military,
major freight forwarders and international leisure tour operators. Founded in
1948, World operates a fleet of 17 wide-body aircraft to meet the specialized
needs of its customers. For information, visit http://www.worldairways.com.
"Safe Harbor" statement under the Private Securities Litigation Reform Act
of 1995: This release contains forward looking statements that are subject to
risks and uncertainties including, but not limited to, the impact of
competition in the market for air transportation services, the cyclical nature
of the air carrier business, reliance on key marketing relationships,
fluctuations in operating results and other risks detailed from time to time
in the companys periodic reports filed with the SEC (reports are available
from the company upon request). These various risks and uncertainties may
cause the companys actual results to differ materially from those expressed
in any of the forward looking statements made by, or on behalf of the company
in this release.
