And It's Taking A Toll
A pilots strike at helicopter
operator PHI Inc. is now entering its fourth week... and one Texas
community is feeling the pinch.
"Our crew is not flying out of here," said Tracy Shaw, marketing
vice-president at Oak Bend Medical Center in Richmond, TX. Fort
Bend Now reports the hospital's helo remains tied down... with
emergency flights being handled by other area operators based out
of nearby Sugar Land Regional Airport.
Though its primary customers remain offshore oil operators, PHI
also handles medical flights for several communities along the Gulf
coast. Those cities have had to make other plans since the strike
began September 20, when pilots walked out due to what they termed
an ongoing labor dispute.
As Aero-News reported, the
pilots -- represented by the Office and Professional Employees
International Union Local 108 -- have worked without a contract
since 2004, or nearly two-and-a-half years. Negotiations between
the company and the union have stalled -- with the pilots demanding
more pay, and an end to mandatory overtime.
The strike has taken its toll on PHI, as well. After weeks of
maintaining the strike has done relatively little to affect its
operations, on Thursday the Lafayette, LA-based company filed a
report with the Securities and Exchange Commission that
stated "approximately 20% of the flights in our domestic oil
and gas segment, and 10% of the flights in our air medical segment
remain curtailed."
"If we are unable to resolve our differences with the union
expeditiously or to replace the lost flight hours, it could have a
material adverse effect on our operations, revenues and financial
condition, as well as on our relationships with customers," the
company added in the SEC filing. "We are a highly leveraged company
and, as a result, have significant debt service obligations."
Due to that situation, the helicopter operator said it will be
increasingly forced to use its revenue to pay off its financial
obligations... with fewer funds available to keep its regular
operations going.
That's a slippery slope... as it stands to reason the fewer
flights PHI can fly, the less money it can take in.
Meanwhile, the union maintains it has plenty of funds to keep
the strike going... with a financial aid fund for striking members
"is strong, and should remain so for the foreseeable future."