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Air Transportation Regulations and Labor Relations: A Comprehensive Study, Exams of Aviation

An in-depth analysis of key international and domestic air transportation regulations, including the paris convention 1919, warsaw convention 1929, montreal convention 1999, and the special drawing right (sdr). It also delves into the operations and activities of organizations such as icao, faa, eurocontrol, and the european aviation safety authority. The document further discusses financial aspects of airlines, bond ratings, and various types of business organization structures. It also covers labor relations, union formation, and collective bargaining in the airline industry. Lastly, it touches upon safety initiatives, labor laws, and union tactics.

Typology: Exams

2023/2024

Available from 04/17/2024

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Download Air Transportation Regulations and Labor Relations: A Comprehensive Study and more Exams Aviation in PDF only on Docsity! Aviation 3200 Final Exam Review Part 2 Questions with Verified Solutions. Paris Convention 1919 - ANS Determining the ownership of airspace above each nation. Created International Commission for Air Navigation US Involvement in Paris Convention, result - ANS Not a signatory because of non-participation in League of Nations. However, joined in with the Pan American Conference and Havana Conference to create air routes, customs-landing procedures Warsaw Convention 1929 - ANS Determined air carrier liability (both life and personal property damage). This is outlined in the "Special Drawing Rights" as starting at $8300 -> $156,824 today per seat. Montreal Convention 1999 - ANS Amended the Warsaw accomplishments and included electronic ticketing and updated the liability figures Special Drawing Right (SDR) - ANS Currency compensation used to value passenger and luggage in monetary value. Current passenger life SDR at 113,100 ($156,824) and luggage at 1,131 ($1568) Chicago Convention 1944 - ANS 52 country agencies met to discuss rights of transit and landing in other countries. Big Takeaways: 1. Ground rules for international air transport agreements 2. Air traffic Control Rules 3. English as official language 4. Groundwork for ICAO (international civil aviation organization) 5. 5 Freedoms of the Air Freedoms of the Air (5) - ANS 1. Fly over foreign land w/o landing 2. Land for emergency/technical reasons not commercial 3. Load passengers/cargo in home country and transport to foreign country 4. vice versa of 3 (foreign -> home) 5. Transport passengers/cargo from foreign -> foreign for continuing flight Disagreements with Freedoms after Chicago - ANS Issues with freedom 3-5 would be settled individually between countries. US-Britain had significant disagreements US-EU Agreement - ANS Bermuda Agreement established that any US carrier could fly anywhere into Europe. Vice versa! Page 1 of 10 Cabot age and example explained in class - ANS Flying within a foreign country. NOT ALLOWED if passengers disembark at destination and don't go ahead to home country. Qantas JFK-LAX-SYD flight 3 Major Bodies of ICAO - ANS Assembly (reps from every country meet every 3 years), Council (governing body), Secretariat (day-to-day operations) Operational Divisions of ICAO examples - ANS Bureau of Administration and Services, Legal Bureau, Technical Cooperation Bureau, Air Transport Bureau, Air Navigation Bureau Main activity of ICAO and what they require from each member country - ANS Standardization of procedures and practice. This can be done by the requirement of Aeronautical Information Publication (AIP) to have visibility into air navigation of a country (airport, air traffic, NAVAIDS, special info that differs from ICAO) FAA's significant role in ICAO and international aviation - ANS Helps support other member nations with regulations, training, ATC, procedures and practices. Handled through Assistant Administrator for International Aviation with international offices IASA and example of what they operate - ANS International Aviation Safety Assessment Program with the FAA to ensure compliance with ICAO standards, assesses other country airlines flying in-out. Basis for North Atlantic Tracks FAA International Product Teams - ANS Ensure coordination in national airspace system development. Various teams dedicated to different components (enrooted, terminal, weather, oceanic, ATM) Global Aviation Information Network - ANS Data collection used for sharing safety information among countries Euro control (what they do, how many members, current initiative work) - ANS Overseas air traffic control for all EU member states (41 members) and working towards "Single European Sky" modern airspace which is the Neaten equivalent European Aviation Safety Authority - ANS Created Joint Aviation Regulations (JARs), cooperate with other safety authorities, coordinate to create harmonized procedures for safety Overall financial success of airlines (profit margins and the drivers of current performance) - ANS Low profit margins generally, correlated with changes in the economy (9/11 and 2009 Recession big hits to the industry). Today ~10-15% profit margin due to mergers and introduction of ancillary fees Who in the DOT handles air travel complaints? What two roles does this body serve? - ANS Assistant Secretary for Government Affairs for the DOT. Handles: Page 2 of 10 Quick (Acid Test) Ratio - ANS (Current Assets - Inventory) / Current Liabilities. Measures ability to pay debts quickly with liquid cash Earnings per Share - ANS Overall profit generated during time period. Used to determine the quality of an investment in a company for potential stockholders/debt holders P/E Ratio - ANS Indication of how the market rates compare to what a company is offering (self- vs. competition) (Stock Price / EPS) Profit Margin calculation - ANS Operating Profit / Operating Revenue Three different Union-Management Safety initiatives taken - ANS Safety Roundtables, ASAP, FOQA Safety Roundtables - ANS Periodic meetings with the company safety dept. and union safety committee to discuss ways of improving the safety environment. Apolitical! ASAP - ANS Aviation Safety Action Program. 3-way agreement with union, management, and FAA to voluntary disclose mishaps with less discipline incurred. Encourages education rather than punishment Who reviews the ASAP reports, and what is this body made up of? - ANS Event Review Team (ERT) includes union rep, FAA inspector, and company safety dept. ASAP-NASA - ANS ASAP reports automatically file NASA reports! FOQA - ANS Flight Operations Quality Assurance. Sharing of flight data to mitigate accidents/incidents with aircraft. More proactive measure to prevent mishaps LOSA - ANS Line Operations Safety Audit AQP - ANS Advanced Qualification Program Beginning of labor issues early-mid 1800s - ANS Mining, factory, railroads required tiresome human labor with poor working conditions. As a result of the unappealing, immigrants and other "vulnerable" populations worked these jobs. To protest the conditions, pay, hours, these groups conducted "wildcat" strikes (voluntary skip work without authorization) Pullman Strike 1894 - ANS A staged "wildcat" walkout strike by railroad workers upset by drastic wage cuts (25% cut). Eventually the government intervened because it was interfering with national commerce. Federal troops sent in which resulted in >25 deaths. Mass sympathy countrywide for those striking. Page 5 of 10 Dawn of Labor Relations (what three groups took interest, describe their interest) - ANS Federal Government: Doesn't want commerce interrupted by strikes, also public perception shines negative light on government. Labor unions could make this more civil Industry: Ultimately they wanted to stop the strikes. Saw labor relations as a compromise and way to prevent strikes with dialogue Workers: Want labor unions to have their voice heard and considered. Railway Labor Act 1926 - ANS Created guidelines for organizing, bargaining/negotiating, and dispute resolution. Compromise between governments, industry, workers to appeal to all their needs. When were the airlines added to the Labor Act of 1926? - ANS After ALPA lobbying, in 1934 airlines had guidelines for labor relations National Mediation Board (how was it created, 3 goals of board) - ANS Created by the Railway Labor Act, this federal agency is to help the parties resolve labor-management disputes arising in transportation industries. 1. Resolve contract disputes (collective bargaining) 2. Oversee organizing of employees (acts as third party) 3. Dispute Resolution over existing contracts National Labor Relations Act 1935 (who did it include and not include) - ANS Covered the creation of labor unions in other notable industries (auto, steel, nuclear). Didn't include government, agriculture, contractor, railroads, airlines, management Difference with NLRA (1935) and RLA (1926) (4 differences discussed in class) - ANS Railroad Labor Act: Contracts never expire. Easy for the president to intervene through the Presidential Emergency Board (PEB). Allows sympathy/secondary strikes (strikes with other groups). Requires different labor groups for each job population (pilot, mechanic, FA) National Labor Relations Act: Contracts expire 3 years, must be created again. Harder for the president to intervene (difficult legal hoops to go through). Restrictions on sympathy strikes. One union can represent many job populations in a company 7 Different Qualifications for employees to start labor organizing under the RLA - ANS 1. Company must be regulated by FAA 2. Company tied to interstate commerce Page 6 of 10 3. Company participates in common carriage 4. Company is subsidiary involved with rail or air Transport Company 5. Company is an airline with certain qualifications 6. Company has contract with another carrier that's under the RLA 7. Operations of the company are under NMB jurisdictional investigation How do you start a union? (Almost guaranteed short answer question!) - ANS 1. Need one of the 7 qualifications outlined in class (see flashcard) 2. Employees petition to NMB with at least 35% of employee participation and interest. If union already established, 50% of employees must submit authorization card 3. NMB will call for election with secret ballot. Approval granted when 50% + 1 vote is in favor of the union. How does the NMB determine class of a union? - ANS Based on the functions/responsibilities of the employees involved, general nature of work. And cases handled previous by the NMB Examples of those that cannot organize a union - ANS Part-time, temporary, dismissed, furloughed, contractor, retired, management... Laboratory Conditions with Labor Unions - ANS 1. Companies cannot influence the decisions of employees in unions (prohibits coercion, harassment, surveillance, intimidating). 2. Also cannot favor one group over another, 3. Cannot fire those that organize 4. Cannot collect ballots for the NMB Laker vs. Key Ballot in the certification of unions - ANS Laker Ballot: Requires 50% of votes cast to get union certification. Handles most cases Key Ballot: Union automatically certified unless majority votes to oppose. For egregious cases Collective Bargaining background (what it is, where is it outlined and who enforces it) - ANS Negotiating a new or existing labor contract, outlined procedures in the RLA and through the NMB Steps in Collective Bargaining (could be a short answer question, 8 possible steps) - ANS 1. Both sides send a "section 6" notice prior to the amend date 2. Direct negotiations w/o a mediator Page 7 of 10
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