ATSG wins ruling in pilots dispute

19 / 05 / 2017

US-freighter lessor Air Transport Services Group (ATSG) has won an important industrial relations ruling in a dispute with some of its pilots.

The US National Mediation Board has ruled in favor of ATSG's subsidiaries, in determining that they do not operate as a single transportation system, as defined under the US Railway Labor Act, for purposes of the labor representation of their pilot employees.

In November 2016, a judge ruled that the dispute between ATSG and its pilots should be resolved through a grievance and arbitration process.

Later that same month, striking pilots flying ABX aircraft were ordered back to work by a US district court judge after a day of industrial action.

Two unions contended that ATSG had operated the two  subsidiary cargo airlines, ABX Air (ABX) and Air Transport International (ATI), “as a single transportation system while maintaining a facade of two separate carriers”.

Earlier this month, ATSG saw revenues, earnings from continuing operations before taxes and net earnings improve during the first quarter of the year thanks to its acquisition of Pemco and the roll-out of its Amazon business.