UTU News Digest - Thursday, February 11,1999

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Thursday, February 11, 1999

American Pilots ordered to work, but compliance is iffy

NEW YORK -- Even if a majority of pilots of AMR Corp.'s American Airlines comply Thursday with a court order sending them back to work, it will take "a couple of days" for the airline to resume a normal flight schedule, a spokesman said Thursday.

Spokesman Tim Smith said that some pilots had called in sick Thursday despite the court order, and noted that those who called in sick on previous days "have in effect canceled the two-, three-, and four-day trips that pilots are scheduled for."

"If we combine what happened today with what cumulatively happened earlier in the week, we still have a rough day ahead of us with quite a number of cancellations," Smith said.

As reported, a federal judge Wednesday granted a temporary restraining order against its pilots from continuing a "sickout." The work action began last weekend, when talks broke down between the pilots' union and the airline over integrating pilots of Reno Air, which was acquired Dec. 23.

The spokesman said the airline won't know what the level of compliance to the court order will be until later Thursday, but said American is "hopeful" the pilots will comply. He noted that when people call in sick, the airline has "no way to judge whether someone is officially sick" and has to "accept them at their word."

"Certainly if there were widespread defiance of something like this I'm sure the judge will take note of the cancellations and sick numbers, and then what would happen after that is up to the judge," Smith said.

Even if the majority of pilots report to work, he said, "We do have airplanes and crews out of position, and that means it will take a couple of days to get back to normal, even in the best case scenario."

American said some 1,500 pilots in excess of normal levels have called in sick since the start of a union protest Saturday. Flight cancellations have increased each day, and Wednesday, American canceled more than 40% of its 2,250 flights, stripping about 8% of the nation's total airline capacity from the skies. Since Friday, roughly 300,000 travelers have been forced to change flights or scrounge for seats on other carriers, and analysts estimate American's losses have topped $10 million.

The courtroom action actually pre-empted negotiations on a resolution to the dispute over American's plan to integrate Reno Air, which it acquired Dec. 23, into its route system. The airline and the union last met on the issue Tuesday, with no progress reported.

"We are not one millimeter closer to a settlement than before the court order," said Brian A. Mayhew, the union's vice president. "This doesn't do anything to facilitate a settlement."

Some pilots said the order may only fan pilot furor. As a safety precaution, pilots have the ability under federal law to decide themselves whether they are or aren't "fit to fly," and some doubted the judge's order would prompt unhappy union members to return to cockpits. Indeed, a similar order obtained by American nine years ago in a dispute with pilots only increased sick calls.

Enforcing the order could prove difficult, as compliance depends on the reaction of individual pilots. "That judge can't give 3,000 physicals a day and figure out who's sick and who's not," said one union official who didn't want to be identified.

The pilots union wants the company to pay immediate raises to pilots who will advance because of the Reno acquisition, while the company has proposed a gradual pay adjustment granting raises as it retrains pilots for new assignments over 18 months. The APA contends its contract requires all flying on behalf of AMR to be done at APA rates, while the company maintains every previous airline merger in the industry has been executed with a gradual transition.

Sooner or later, the Reno acquisition means hefty pay raises for Reno pilots, who are paid about half as much as their counterparts at American. It also means new captains' positions and other advancement opportunities for current American first officers. American's pilots average about $136,000 a year in salary.

Railroad industry defends pace of anti-collision system tests

TOLEDO -- For at least a decade, the railroad industry has been testing safety systems intended to prevent collisions.

Positive Train Separation uses data gathered by either satellites or ground-based transmitters to determine if one train is getting too close to another or if a train is too rapidly approaching a point on the track at which it is required to stop.

Barry Sweedler, director of the office of safety recommendations for the National Transportation Safety Board, wonders what's taking so long. Tests early this decade in Minnesota proved that the satellite system works, improving railroad productivity as well as safety, he said.

"It is very difficult for me to rationalize why the industry is not moving forward with this," Mr. Sweedler said.

But Chuck Dettmann, executive vice president of safety and operations for the Association of American Railroads, said that if a Positive Train Separation technology indeed were ready for use, railroads would be using it rather than spending money on several study projects now under way.

Only recently, Mr. Dettmann said, has global positioning become sufficiently accurate for railroad applications.

"If there was a (ready) solution, we would all welcome it," he said.

Pamela Barry, a spokeswoman for the Federal Railroad Administration, said that agency is satisfied that the safety technology's development is proceeding as quickly as possible.

"We've been working with the railroads very aggressively on this," she said.

After a January 1987 collision in Maryland between Conrail engines and an Amtrak passenger train killed 16 people, the NTSB recommended Positive Train Separation installations on all major rail lines. And, when the safety board established a "most wanted" list of transportation improvements in 1990, the system was included -- and it remains on that list today.

Since then, Mr. Sweedler said, there have been dozens of train collisions that a Positive Train Separation system could have prevented. Only on the Boston-Washington corridor and several connecting lines must trains have a speed-limiting device on their locomotives.

Under the PTS concept, a train's location and speed are used to calculate its safe-braking distance to trains or other conflicts ahead of it. If necessary, the train's brakes can be applied automatically.

The system even can be used on tracks without signals to keep a train from going past the station to which a dispatcher has given that train permission to operate, Mr. Sweedler said.

"Any time a train does what it's not supposed to do, PTS would take over," he said. "The system knows whatever is expected of the train."

Mr. Dettmann said the railroad industry would not have spent "hundreds of millions" of dollars on system development if it did not believe in the concept.

But nothing is ready to come "off the shelf" for installation, Mr. Dettmann said. The system that was tested in Minnesota, he said, worked in a confined area but did not have the modular design needed for gradual expansion.

Various tests are planned or under way at 10 locations across the country, Mr. Dettmann said, including a 125-mile stretch of Positive Train Control on a mixed freight-passenger route between Chicago and Springfield, Ill., and part of Amtrak's line between Kalamazoo and Chicago.

Positive Train Control goes beyond Positive Train Separation by allowing dispatchers to remotely limit train speeds for such purposes as train spacing, fuel conservation and reducing congestion at yards and junctions. According to Burlington Northern & Santa Fe Railway, such a system has the potential to increase the train capacity on certain tracks by more than 40%, perhaps postponing or eliminating the need for track expansion on growing routes.

Such efficiency improvements are critical to the future of satellite train-control systems, said Jim Sabourin, a BNSF spokesman. Without improved efficiency, the other benefits from the system "can't justify" the expense, he said.

Train kills teen who played dangerous game

GOODLETTSVILLE, Tenn. -- A Goodlettsville teenager loses a deadly game of "chicken". Witnesses say the boy and two friends stood in front of an approaching train, waiting until the last minute to get out of the way.

Only two of the teens managed to jump to safety in time. The engineer says he saw the boy who was wearing a white T-shirt, but could not stop the train. A short time later he heard a thud. The victim's name has not been released.

Increased commuter rail funding requested

WASHINGTON -- In an attempt to ease the commuter crush for thousands of Northwest Indianans, U.S. Rep. Pete Visclosky will ask Congress Wednesday for $6 million to purchase new train cars for the South Shore rail line.

Visclosky (D-Merrillville) is scheduled to tell the House Appropriations Transportation Subcommittee that eight new cars are "desperately needed" to ease the burden on the line, which transports commuters between South Bend and Chicago.

Operated by the Northern Indiana Commuter Transportation District, the South Shore line's ridership has soared from 1.8 million riders annually in 1975 to 3.36 million last year.

"This increase in ridership has put such a strain on the existing system that morning rush-hour trains are now operating at 112 percent capacity," Visclosky will tell the subcommittee, according to prepared testimony.

"Over the entire year, west-bound trains, including non-rush hour service, average nearly 100 percent of seated capacity."

But the South Shore line is important "whether or not you ride the train," Visclosky said prior to the hearing. He said the line is "a key component" to the economy of Northwest Indiana, property values and the region's quality of life.

Because the line is a vital link for Indianans working in Chicago, Visclosky said securing federal funding for South Shore is a top priority. But it won't be easy.

"It will be a tough fight to get this funding," Visclosky said, adding that $6 million is a lot of money for one district.

But if Visclosky is successful, commuters will benefit because more trains means more seats will be available, according to John Parsons, spokesman for the transportation district.

"On early morning trains it will reduce congestion," Parsons said.

The funds sought by Visclosky will be combined with $7 million in federal funds already appropriated and state and local funds to purchase the eight cars, which have a price tag of $25 million. Each car has 93 seats.

The South Shore commuter rail line has an annual operating budget of $22 million, about half of which comes from passenger fares. The line last purchased new cars in 1992 and now has a 55-car fleet available for daily service.

The subcommittee's hearing is part of the annual process to formulate a federal budget for the fiscal year beginning on Oct. 1, 2000.

Ashley Miller named AAR's Director of Congressional Affairs

WASHINGTON -- The appointment of Ashley A. Miller as Director of Congressional Affairs for the Association of American Railroads (AAR) was announced today by Edward R. Hamberger, AAR president and chief executive officer.

Ms. Miller comes to the AAR from the office of Senate Finance Committee Chairman William V. Roth (R-Del.), where she has served as a legislative assistant since 1994. In that capacity she was an advisor to Senator Roth on energy, environment and transportation policy and tax issues.

"Ashley Miller has a broad background that will make her a real asset to the Association and its members," Mr. Hamberger said.

"She is knowledgeable about railroads, having worked last year on legislation that created a $2.3 billion Capital Trust Fund for Amtrak. She is also well-versed in tax issues that are of particular interest to railroads. We are especially fortunate that she is able to join us at the beginning of the 106th Congress," he added.

Prior to joining Senator Roth's staff, Ms. Miller worked as a research associate for the Center for Energy and Environmental Policy; as a consultant for Energetics, Inc.; and in public affairs for the National Recreation and Park Association.

Ms. Miller has a B.A. in business management from James Madison University and an M.A. in energy and environmental policy from the University of Delaware. She lives in Washington, D.C.

AAR is the world's leading railroad policy, research and technology organization focusing on increasing the safety and productivity of rail carriers.

SEPTA Funds will be used to pay off new El fleet

PHILADELPHIA -- SEPTA General Manager John K. Leary Jr. today announced the successful sale of $262 million in special revenue and refunding bonds with an average interest cost under 5%.

Leary, stating that the sale "reflects favorably on the stability of the Authority," said the proceeds will be used to complete the purchase of SEPTA's new fleet of Market-Frankford subway-elevated cars as well as refund most of the 1995 series bonds issued at higher interest rates. While the net savings in this fiscal year from the bond refunding is not significant, net present value savings are expected to generate more than $3 million.

SEPTA Treasurer and Chief Financial Officer Faye Moore noted the "ideal timing" of the sale given favorable market conditions. She also praised all members of the bond financing team for their hard work and cooperation. Closing date for the issue is February 23.

RailTex, Inc., reports carloadings for January 1999

SAN ANTONIO -- RailTex, Inc., today announced that carloadings for January 1999 increased by 15% to 49,035 from 42,621 in January 1998. The Company experienced traffic gains primarily in railroad equipment, chemicals, paper, non-metallic ores, and autos. Carloading totals include the recently acquired Central Properties, Inc. ("CPI") and the Guelph Line. The Company assumed operations of the CPI from a voting trust on August 1, 1998 and began operating the Guelph Line on November 16, 1998.

On a "Same Railroad" basis, carloadings increased by 12% to 47,806 in January 1999 from 42,621 in January 1998. The traffic gains were primarily a result of increases in railroad equipment due to the movement of empty coal cars for the Union Pacific from an Arkansas Power & Light plant to Kansas City via the Missouri & Northern Arkansas Railroad. The Company also experienced gains in paper, autos, non-metallic ores, and chemicals.

These increases were offset, in part, by decreases in farm products, lumber, and coal. "Same Railroad" carloadings include the Guelph Line, which is operated as part of the Company's Goderich-Exeter Railway.

Historically, the Company has found that carloading information may be indicative of freight revenues on its railroads, but may not be indicative of total revenues, operating expenses, operating income or net income.

With more than 4,200 miles of track, RailTex is North America's leading operator of short line railroads. Its holdings include short line railroads concentrated in the Southeastern, Great Lakes region, New England and Midwestern United States as well as Eastern Canada. RailTex also owns minority stakes in two Brazilian railroads and operates a line in Kazakhstan. The Company emphasizes a disciplined acquisition strategy and stresses improving the profitability of its existing railroads and the development of new business opportunities.