America West's flight attendants have rejected an initial pay offer and are back at the negotiating table in a fighting mood.

An overwhelming 90 per cent of the America West chapter of the Association of Flight Attendants have rejected a tentative agreement. The main sticking point is pay, says the union. With the Phoenix-based airline on its feet again and recording record profits (see feature p40), the attendants feel they should reap some of the rewards.

According to Scott Ramsey, the chapter's secretary and treasurer, the pay of America West attendants ranks 26th out of the 37 US carriers. An attendant working 75 base flight hours a month earns US$40,128 a year at low-cost rival Southwest, while an America West attendant makes just $21,972.

'America West wants to be a major airline, but it doesn't want to pay what it takes to be a major airline,' says Ramsey. 'We certainly don't want to strike, but we are prepared to go down that path.'

The union is considering short, unannounced 'flash strikes'. But US labour law will only allow strike action if the negotiations in Washington DC reach an impasse, and then only after a further 30-day cooling off period.

America West has had a chequered history, including a period in Chapter 11 bankruptcy, but a turnaround in 1997 led to a record fourth quarter. Managers are focusing on improving yield mix, but are also keen to retain one of the lowest costs per available seat mile in the industry. Managers say they believe that with increased use of information technology they can offer 'a nice pay package' without jeopardising low costs.

Source: Airline Business