MAGSA MEMORANDUM PDF Free Download

Mark Lopez (o) (202) 626-4213 (f) (202) 626-7854 mlopez@airlines.org MAGSA MEMORANDUM-2015 TO: FROM: All MAGSA-81 (Revised) Participants A4A, Mark Lopez, Director - Technical Operations SUBJECT: Revised Ground Equipment and Personnel Rates Effective April 1, 2015 Attached are the revised ground equipment and personnel rates under MAGSA-81 (Revised) for the period April 1, 2015, through March 31, 2016. The revised ground equipment rates reflect a 5.6% decrease in the Producer Price Index (all commodities index) from January 2014 to January 2015. The personnel rates are the result of computations performed as required under Paragraphs 13(b) and 13(c) from information provided by nine MAGSA-81 (Revised) participants. The rates reflect a 1.7% decrease in the 2014 rates. NOTE: As you are aware, MAGSA does not limit in any way the ability of a signatory party to have other agreements to provide or receive aviation services. Parties to MAGSA are free to enter into separate service arrangements with persons who are not parties to MAGSA, as well as with those who are signatory parties. The terms of any such arrangements are determined solely by the parties and are in no way controlled by, or subject to, the provisions and fees set forth in MAGSA. Do not hesitate to call if you have any questions or need further clarification.

M A G S A THE FOLLOWING AIRLINES CURRENTLY OPERATING HAVE EXECUTED MAGSA-81 (REVISED) TOTAL OF 13 ABX Air, Inc. Alaska Airlines, Inc. American Airlines, Inc. Delta Air Lines, Inc. Express Jet FedEx Express Hawaiian Airlines JetBlue Airways Corp. Omni Air International Sierra Pacific Airlines, Inc. United Airlines, Inc. UPS Airlines US Airways, Inc. 2

MUTUAL ASSISTANCE GROUND SERVICE AGREEMENT - 1981 (As Revised Effective September 12, 1983) The parties hereto, and each party which hereafter joins in this agreement by executing a counterpart hereof, agree as follows: 1. Subject to the terms and conditions hereinafter contained, each party hereto will, at any airport of the United States regularly served by it, make every reasonable effort to provide such services and facilities (as provided in paragraph 6 hereof) as may be requested by another party hereto; Provided, in those instances where the requesting party has regularly scheduled services at that airport or requests services on a regular basis, the request will be in writing, and provided further that the obligation of any party hereto to provide services and facilities requested shall be subject and limited by: (a) (b) (c) the capacity of its physical plant and its personnel at said airport; its own requirements at the time; and any restriction imposed upon said party by law, or by the terms of the lease or other instrument by virtue of which it operates on said airport; and (d) the understanding that, at any airport served by the requesting party on a regularly scheduled basis, there shall be no obligation to provide any services and facilities hereunder unless the party upon whom the request is made shall have agreed to provide the requested services and facilities. 1

2. This agreement shall not apply to services or facilities provided, or to any sale made, or other transaction pursuant to the terms of any bilateral or multilateral agreement between two or more of the parties hereto applicable at a specified airport or the airports serving a specified point, whether such agreement was entered into before or after the effective date of this agreement. 3. Each party hereto will, in the event it can foresee the necessity of assistance from another party hereto, give such other party as much advance notice as possible of the services and facilities desired, in the event such other party will be unable to provide the services and facilities desired it shall so notify the requesting party as promptly as possible. 4. The services and facilities contemplated hereunder shall include, without limiting the generality thereof: (a) the enplaning and deplaning of passengers and their baggage, mail, cargo and express; (b) arranging hotel reservations in, and ground transportation of passengers and their baggage to, the city served by an airport, and, if necessary, arranging for the forwarding of passengers and their baggage to their destination by air or surface transportation, in which latter event the party providing such service shall telephone the nearest office of the party to which service is provided for the purpose of advising of the disposition of such passengers; 2

(c) servicing the aircraft with aviation fuel, oil, spare parts, food and beverages as required, and providing such storage, cleaning, mechanical and repair services as may be necessary; (d) furnishing available United States Weather Bureau information and acting as a transmitting agency for clearances between the crew of the aircraft and the appropriate governmental agencies; Provided, however, that the dispatcher of the party providing such services shall in no event sign clearances or in any manner authorize the departure of a flight operated by the party to which such services are provided; (e) in general, providing such other services and facilities as may be needed for the proper handling of an airplane, its passengers and their baggage, mail, cargo and express. 5. All communications services provided hereunder shall be furnished in accordance with Aeronautical Radio, Inc's standard service agreement. 6. All services shall be provided in accordance with the standards and regulations of the party providing them, and in accordance with the standards and regulations of the Federal Aviation Administration or other appropriate governmental agencies. All services and facilities provided hereunder shall be provided in an expeditious and capable manner. 3

7. In the event a party is unable to provide all of the services and facilities requested of it, it shall provide as many of the requested services and facilities as it is able to provide and shall assist the requesting party in securing the other services and facilities desired. 8. The party to whom services or facilities are provided or who buys spare parts hereunder will assume full responsibility for and shall indemnify, defend and hold harmless the party providing such services, facilities, or spare parts, its directors, officers, agents, servants and employees, from and against any and all liabilities, losses, claims, demands, expense, or damage (including reasonable attorneys fees) for injuries to or death of persons and loss, damage, or destruction of property incurred in connection with, or which may arise or accrue as a result of the provision of services, facilities, or the sale of spare parts hereunder, whether or not due to the active negligence of the party providing the services, excepting, however, (1) injury to or death of the directors, officers, agents, servants and employees, as well as the loss, damage or destruction of property, of the party providing services, facilities, or the sale of spare parts hereunder, for which indemnity shall be provided hereunder only to the extent caused by the negligence or willful misconduct of the party to whom the services or facilities are provided or who buys spare parts hereunder, and (2) liabilities, losses, claims, demands, expense, or damage resulting from the gross negligence or willful misconduct of the party providing such services, facilities, or spare parts, or of its directors, officers, agents, servants, or employees. 4

9. A party providing services or facilities hereunder shall use its own supplies, equipment and material, and its own personnel it being understood and agreed that such personnel shall in all respects be considered as employees of such party, and that such employees shall continue to be covered, while providing such services and facilities, by the same Workers' Compensation arrangements as apply when such employees are engaged in their general employment by the party providing such services and facilities. A party providing services and facilities hereunder assumes full Workers' Compensation responsibility for any and all liability to its employees on account of injury, or death resulting there from, sustained in connection with or arising out of the provisions of services or facilities hereunder. 10. As consideration for the services and facilities provided hereunder, the party to which the services or facilities are provided shall pay the party providing them at the following rates within the continental United States. With respect to Alaska, the following rates plus 15% for equipment (paragraph 10(d) and (e)) will apply. With respect to Hawaii, the following rates plus 10% for equipment (paragraph 10(d) and (e)) will apply: (a) Spare parts, materials and supplies (other than aviation fuel): Cost plus 25%, plus all applicable taxes. (b) Aviation Fuel and Oil: (1) Aviation Fuel - Each party hereto will use its best efforts to make arrangements with its vendors under which, when such a party services an aircraft of another party hereto with aviation fuel, the servicing party will notify its vendor of the number of gallons furnished and the vendor will bill 5

the party receiving the aviation fuel, direct, and credit the servicing party with the number of gallons furnished. If the vendor will not agree to such an arrangement, aviation fuel servicing will not be provided hereunder. When a party hereto services an aircraft of another party hereto with aviation fuel, a charge of five (5) cents per gallon or $50 per servicing, whichever is greater, will be made for the into-plane service, in lieu of all other charges for such service. (2) Oil - The published list price of the servicing party's vendor, plus all (c) Communications: applicable taxes. (1) For all services provided by Aeronautical Radio, Inc., the established rates paid by the party providing such services. (2) For all telephone and other communications services, the actual costs thereof to the party providing them. (d) Ground Equipment: (Revised rates effective April 1, 2015) For servicing all aircraft except for Specialized Wide-Body Equipment as noted in (e). (The following rates do not include charges for manpower to position and operate the equipment.) (1) Passenger Steps $35.05 for each 30 minutes (non-motorized) 6

(Revised rates effective April 1, 2015) (2) Passenger Steps $45.40 for each 30 minutes (motorized) Passenger Steps (truck-mounted) $56.10 for each 30 minutes (3) Baggage Cart $14.30 per servicing per aircraft. (4) Lavatory Cart $21.50 per servicing per (without mobile aircraft. power) Lavatory Cart (motorized) $45.80 per servicing per aircraft. (5) Generator,D.C. Small $14.30 for each 30 minutes (750 amps or below) Generator,D.C. Large (above 750 amps.) $21.50 for each 30 minutes Generator,A.C. Small $56.10 for each 30 minutes (75 KVA or below) Generator,A.C. Large (above 75 KVA and below 125 KVA) $69.75 for each 30 minutes (6) Air Conditioning Trucks Cooling - 20 tons and below Cooling - above 20 tons & below 60 tons Heating - 200,000 BTU and below $45.80 for each 30 minutes $69.75 for each 30 minutes $45.80 for each 30 minutes Heating - above $69.75 for each 30 minutes 200,000 BTU 7

(Revised rates effective April 1, 2015) (7) Tractor* (for towing aircraft) 12,000 lbs. drawbar $35.05 for each 30 minutes pull and below Above 12,000 lbs. drawbar pull and below 22,500 lbs. drawbar pull $45.80 for each 30 minutes 22,500 lbs. drawbar $56.10 for each 30 minutes pull and above, but below 50,000 lbs. drawbar pull Tractor* (other than for towing aircraft) $21.50 for each 30 minutes *When power unit on tractor is used, add rates as applicable in item (5) on page 7. (8) Forklift 10,000 lbs. capacity $35.05 for each 30 minutes and below Above 10,000 lbs. capacity $45.80 for each 30 minutes (9) Cargoveyor $35.05 for each 30 minutes (10) Aircraft Heating Unit $16.65 for each 30 minutes (other than air conditioner) 8

(Revised rates effective April 1, 2015) (11) Pneumatic Starting Equipment Bottle Carts of "Blow Down" System Continuous Flow For System Test (other than starting) Combined Air Start/ Ground Power Unit $35.05 per aircraft start. $56.10 per aircraft start. $87.10 for each 30 minutes $112.50 combined unit use for each 30 minutes or fraction thereof, or $69.65 per aircraft start. (12) Demineralized Engine $35.05 per aircraft Water - excluding the service. use of water truck (13) Demineralized Engine $80.55 per aircraft Water - including the service. use of water truck (14) Ramp Sweeper (brush) $21.50 for each 30 minutes (15) Passenger Water Service- $45.80 per servicing per Truck aircraft (16) Potable Water $35.05 per servicing per (fixed cabinet) aircraft. (17) Truck $45.80 for each 30 minutes (route van, panel, and personnel carrier) (18) Truck - scissor lift $45.80 for each 30 minutes (19) Aerial Tower $69.75 for each 30 minutes (self-propelled) 9

(Revised rates effective April 1, 2015) (20) Jacks $15.20 per hour or fraction (40 ton wing) thereof. (21) Jacks $15.20 per hour or fraction (axle, cantilever) thereof. (22) Tire Bead Breaker $15.20 per servicing per aircraft. (23) Freon Service and $21.50 per servicing per Purging Unit aircraft. (24) Hydraulic Service Jeep $45.80 for each 30 minutes (25) Compressor - dry air $21.50 for each 30 minutes tires and struts (portable) (26) Towbar $15.20 per hour or fraction thereof. (27) Fin Ladder $15.20 for each 30 minutes (28) Floor Scrubber $21.50 for each 30 minutes (non-motorized) Floor Scrubber (motorized) $69.75 for each 30 minutes (29) Hoist - baggage $45.80 for each 30 minutes container (30) Dolly $15.20 per hour or fraction (non-motorized) thereof. (31) Dolly $21.50 per hour or fraction 4,000 lbs. capacity thereof. (32) Cargo Belt Loader $35.05 for each 30 minutes 10

(Revised rates effective April 1, 2015) (33) Wheel Chair Pallet $14.20 for each hour or fraction thereof. (34) Passenger Loading Bridge $127.50 for each 30 minutes (35) De-Icing Equipment $72.05 for each 15 minutes (without fluid or or fraction thereof operators) (De-Icing Fluid will be station cost plus 25%) (36) Special Cargo Handling Equipment (a) Auxiliary Pallet Loader (b) Pallet Dolly (c) Pallet Loader (d) Pallet Loader (self-propelled) (e) Pallet Transporter (motorized) $25.70 for each 30 minutes $18.10 for each 30 minutes $91.35 for each 30 minutes $124.30 for each 30 minutes $51.15 for each 30 minutes 10. (e) Specialized Ground Equipment: Wide-Body (B-747, B-777, B-767, DC-10, A300, A330, etc.). (The following rates do not include charges for manpower to position and operate the equipment.) (1) Passenger Steps $132.40 for each 30 minutes (truck-mounted) (2) Lavatory Cart $83.00 per servicing per (motorized lift aircraft. equipment) 11

(Revised rates effective April 1, 2015) (3) Generator, A.C. Large $99.45 for each 30 minutes (125 KVA and above) (4) Truck-Air Conditioning $99.45 for each 30 minutes (60 tons and above) (5) Tractor* (for towing $188.50 for each 30 minutes aircraft) (50,000 lbs. drawbar pull and above) (6) Pneumatic Starting $83.00 for each unit Equipment - Air Start for each 30 minutes Continuous Flow (for power generation) Air Start $56.10 per start per unit. (7) Potable Water-Truck $49.75 per servicing per aircraft. (8) Truck-Scissor Lift $115.95 for each 30 minutes fraction thereof. (9) Towbar $16.65 for each 30 minutes (10) Dolly, Container $20.05 for each 30 minutes (all sizes) (11) Belt Loader $49.75 for each 30 minutes (12) Container Pallet Loader $149.05 for each 30 minutes or fraction thereof (13) Transporter $66.20 for each 30 minutes (container-self- propelled) *When power unit on tractor is used, add rates as applicable in item (3) above. 12

NOTE: Each party hereto reserves the right to refuse to permit the use of motorized equipment in connection with the provision of services or facilities hereunder unless such equipment is operated by a person or persons designated by such party. (f) General: For all other services provided hereunder, the standard rates fixed by the party providing the services. Landing fees will be billed directly to the party requesting service by the airport authority involved. (g) Ground Equipment Rate Adjustments: (1) Effective April 1, 1982, and on April 1 of each year thereafter, the rates set forth in paragraphs 10(d) and 10(e) above shall be adjusted to reflect changes in the Producer Price Index, as described below. (2) During February 1982, and during February of each year thereafter, the A4A Senior Vice President Safety, Security and Operations, or his designee, shall determine the percentage change of the Producer Price Index available on January 1 of the preceding year. The percentage change shall be applied to the ground equipment rates in paragraphs 10(d) and 10(e) then in effect to develop new rates to become effective April 1 of that year. The new rates shall be rounded to the nearest five (5) cents. 13

(3) On or before April 1 of each year, the A4A Senior Vice President - Safety, Security and Operations, or his designee will transmit the new ground equipment rates to all participants in the format of paragraphs 10(d) and 10(e) of this agreement. 11. Through March 31, 2016, as consideration for personnel or mechanic personnel services, the party to which the services or facilities are provided shall pay the party providing them at the following rate within the continental United States. With respect to Alaska, the following rate plus 25% will apply, and with respect to Hawaii, the following rate plus 15% will apply. (a) Mechanic Personnel: (1) $110.95 per man-hour for straight time. (2) $130.76 per man-hour when a time-and-a-half rate is applicable. (3) $150.57 per man-hour when a double-time rate is applicable. (4) $170.38 per man-hour when a double-time-and-a-half rate is applicable. (b) Non-Mechanic Personnel: (1) $103.02 per man-hour for straight time. (2) $110.95 per man-hour when a time-and-a-half rate is applicable. (3) $126.79 per man-hour when a double-time rate is applicable. (4) $142.64 per man-hour when a double-time-and-a-half rate is applicable. 14

12. On and after April 1, 2015 the parties hereto agree that the rates for mechanic and nonmechanic personnel performed hereunder, as described in paragraph 11 above, shall be the amount specified in writing by the A4A Senior Vice President - Safety, Security and Operations, or his designee, to all parties hereto. This information will be provided in the following format: (a) Mechanic Personnel: (1) Man-hour rate for straight time. (2) Man-hour rate when time-and-a-half is applicable. (3) Man-hour rate when double-time rate is applicable. (4) Man-hour rate when double-time-and-a-half is applicable. (b) Non-Mechanic Personnel (1) Man-hour rate for straight time. (2) Man-hour rate when time-and-a-half rate is applicable. (3) Man-hour rate when double-time rate is applicable. (4) Man-hour rate when double-time-and-a-half is applicable. 13. In determining the hourly rates provided in paragraph above, the A4A Senior Vice President - Safety, Security and Operations, or his designee, shall utilize the following information and methodology: (a) During January 1982, and during January of each year thereafter, each scheduled major and national air carrier, which is a party to this agreement, shall submit to the 15

ATA Senior Vice President - Safety, Security and Operations, or his designee, the basic hourly rate in effect on that carrier for mechanics on January 1 of that year. (b) The A4A Senior Vice President - Safety, Security and Operations, or his designee, will compute the base hourly rate which shall be 1.075 times the average hourly mechanic rate of major and national carriers submitting information in accordance with subparagraph (a) above. The overhead and administrative burden applicable to mechanic personnel shall be 180% of the base hourly rate, and the overhead and administrative burden for non-mechanic personnel shall be 160% of the base hourly rate. (c) The hourly rates will be determined in accordance with the following schedule: (i) Mechanic Personnel: STm = B + OAm = 2.8B 1.5Tm = STm + 0.5B = 3.3B 2Tm = STm + B = 3.8B 2.5Tm = STm + 1.5B = 4.3B (ii) Non-Mechanic Personnel: STnm = 0.8B + OAnm = 2.4B 1.5Tnm = STnm + 0.4B = 2.8B 2Tnm = STnm + 0.8B = 3.2B 2.5Tnm = STnm + 1.2B = 3.6B Where: B = Base hourly rate OA = Overhead and Administration ST = Straight time T = Time m = Mechanic Personnel nm = Non-Mechanic Personnel 16

(d) The A4A Senior Vice President - Safety, Security and Operations, or his designee, will transmit the mechanic personnel and non-mechanic personnel hourly rates to all members on or before April 1 of each year, and the rates shall become effective on April 1 of that year. 14. The cost of all outside services or facilities arranged for by a party requested to provide such services or facilities, such as hotel rooms for passengers or crew, meals furnished by commercial restaurants or caterers, ground transportation, and other services of a similar nature, shall be paid by such party and billed to the party requesting the same. 15. In the event it is necessary to refund money to the passengers of a party requesting such service, the party providing such service shall use its own refund drafts and proceed in conformity with the requirements of the applicable tariffs, and shall bill the party requesting such service for the total amount so refunded. 16. Subject to prior sale and subject to change in the owner's requirements prior to receipt of orders from any other party, each party hereto will sell to any other party hereto aircraft parts or aircraft engine parts (including, without limitation, components and accessories) at the following prices: (a) where such parts are regarded as surplus by the selling party, the price shall be 75% of the net price for such parts being quoted by the manufacturer of such parts at the time of such sale, plus all applicable taxes; and 17

(b) where such parts are carried in the active inventory of the selling party but are in excess of its immediate requirements, the price shall be 125% of the cost of such parts to the selling party, plus all applicable taxes. 17. A party providing services or facilities or selling spare parts hereunder shall bill the party to which such services or facilities were provided or to which such parts were sold at the close of the month (or as soon thereafter as practicable) during which such services or facilities were provided, or such parts were sold, and the party billed shall remit its payment therefore within fifteen (15) days after receiving such bill. 18. Any party may terminate or withdraw from the agreement by giving all parties hereto, and the ATA Senior Vice President - Safety, Security and Operations, or his designee, thirty (30) days prior written notice. 19. This agreement may be executed in any number of counterparts, all of which when taken together shall constitute one original instrument. Any air carrier engaged in air transportation by virtue of a Certificate of Public Convenience and Necessity issued by the Civil Aeronautics Board may become a party hereto by executing a counterpart hereof and by depositing the same with the Senior Vice President - Technical Development and Planning, or his designee, Airlines for America. After the effective date of this agreement, this agreement shall, with respect to any party executing a counterpart hereof, become effective thirty (30) days after the date on which the A4A Senior Vice President - Safety, Security and Operations, or his designee, gives written notice to the other parties hereto that he has received a counterpart of this agreement duly executed by such party. 18

20. Each party hereto appoints the Airlines for America Senior Vice President - Safety, Security and Operations, or his designee, as its attorney in fact for the sole purpose of apprising other parties of its execution of this agreement, or termination and withdrawal there from, and performing other functions specifically provided herein. 19

PLEASE NOTE: THE NEXT TWO PAGES NEED ONLY BE COMPLETED WHEN ENTERING THE MAGSA AGREEMENT FOR THE FIRST TIME. The first page is for your records, the second page should be returned to A4A. 20

IN WITNESS WHEREOF, the parties to Mutual Assistance Ground Service Agreement - 81 (Revised) have caused these presents to be executed by their officers thereunto duly authorized, on the date indicated below. Airline: By: (Officer) Dated: Communications and notices with respect to MAGSA - 81 (Revised) shall be sufficient if served upon: Name: Title: Address: ARINC or TELEX Code: E-mail Address: Retain this signed copy for your files 21