PEACHTREE CITY, Ga., Jan. 28 /PRNewswire-FirstCall/ -- World Airways, a wholly owned subsidiary of World Air Holdings, Inc. , announced today that the International Brotherhood of Teamsters (IBT) negotiating team representing World's 430 pilots has rejected the company's final offer after a week of meetings facilitated by the National Mediation Board. Talks had continued past the cooling-off period, which expired at midnight Friday, Jan. 27, 2006.
"The company is very disappointed that a fair and equitable agreement could not be reached," said Charlie McDonald, chief operating officer. "We believe we had a very attractive offer on the table, including annual wage increases, continued profit sharing, a signing bonus, benefits improvements, work-rule improvements and a job security proposal."
Negotiations have been ongoing for more than two years, since the contract became amendable in June 2003. The pilots rejected an earlier tentative agreement in March 2004. Both parties requested release from mediation in November 2005 after the IBT committee rejected the company's offer at that time.
No further meetings are scheduled at this time. World Airways will continue to operate its military schedule based on a contract provision that prevents interruption of military service. The company also plans to operate its commercial schedule unless service is disrupted by the pilots. The IBT has not formally declared its intentions at this point, however, the pilots are now free to pursue self-help, which could include commercial work stoppages.
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 company's periodic reports filed with the SEC (reports are available from the company upon request). These various risks and uncertainties may cause the company's 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.]
