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Handler AGI claims union's 'misleading' campaign cost it $20m in airline contracts

US handler Alliance Ground International (AGI) has accused the Service Employees International Union (SEIU) of orchestrating a campaign of "false and misleading" allegations that led to the loss of almost $20m in airline contracts. AGI has also filed an injunction to halt the campaign. The handler alleges SEIU and its Local 32BJ deliberately targeted its airline customers, government agencies, and other stakeholders in an effort to pressure it into recognising the union outside the normal labour election process. The company claims the campaign resulted in the loss of five contracts with International Airlines Group (IAG) carriers worth some $13.9m a year, while Singapore Airlines is alleged to have shifted business worth a further $5.9m annually to another handler. The lawsuit claims the union circulated letters, 'fact sheets', and social media posts highlighting safety complaints, employment lawsuits, discrimination allegations, and criminal proceedings involving a former AGI executive, with the intention of damaging AGI's commercial relationships. According to AGI, the 'fact sheets' contained "skewed and inflammatory content". The handler claims: "In them, defendants take isolated and, in some instances, contested or unresolved regulatory matters, and distort them into a misleading if not false and damaging portrayal of AGI as a dangerous and lawless employer whose operations and workforce are unsafe." In May, The Loadstar had received documents containing complaints against AGI from SEIU32BJ, and ran an article, which was seen by Singapore Airlines, which then emailed AGI with its concerns. They said: "Greetings. I'm reaching out regarding the article published by Loadstar yesterday on the situation in JFK. Our management in HQ is concerned, and we would like an update on the health of the stations where AGI is appointed as our ground handler (including offline points). As such, may we request for an update for ORD and ATL on the following items: Safety audit of all ramp and warehouse equipment. Review of ramp and warehouse processes for any safety gaps. Review of manpower and training. Thank you. Best regards." While acknowledging that allegations did not necessarily establish wrongdoing, the airline said the combination of safety complaints and employment litigation presented "regulatory, operational and reputational" considerations that required review. It added that local station teams at Los Angeles, Chicago, and Atlanta had already been engaging AGI over operational issues. The court filings also show that a British Airways supplier manager told AGI that the union's allegations had been escalated internally across the airline group. "Our Aer Lingus colleagues are taking the lead on this as the majority of the allegations are concerning AGI's Miami operation," he wrote, adding that Iberia had also raised concerns. "I would recommend AGI review the allegations and issue a statement addressing these concerns." AGI alleges the campaign reached more than a dozen airline customers across at least five airport locations at a time when it was seeking to renew and expand existing business. It claims five IAG agreements were terminated, and Singapore Airlines shifted business elsewhere, amounting to the loss of at least 10 contracts representing more than $19.8m in annual revenue. The handler further claims the campaign has forced it to devote "countless" staff hours to customer calls, reassurance efforts, and enhanced safety audits, including what it describes as hundreds of additional labour hours to satisfy airline requests, warning that further commercial losses are likely unless the campaign is halted. As of today, the case is still in its early stages. While summonses have been issued, there is as yet no response from SEIU. The Loadstar has asked the union for comment. The dispute follows months of scrutiny over AGI's labour and workplace practices. In May, SEIU Local 32BJ filed Occupational Safety and Health Administration (OSHA) complaints on behalf of workers at New York's JFK and LaGuardia airports, alleging malfunctioning ground equipment, inadequate training, flooding in cargo facilities, insufficient heat protections, and pressure to work with too few staff. In a further blow to AGI's employee relations, AGI is also facing several employment class actions in California, alleging wage-and-hour violations. Former employees have filed lawsuits in Los Angeles and Palm Springs alleging unpaid overtime, missed meal and rest breaks, off-the-clock work, unreimbursed business expenses, inaccurate wage statements, and waiting-time penalties under California labour law. The cases have been brought by different plaintiffs represented by different law firms, but contain broadly similar allegations that company-wide policies deprived non-exempt employees of wages and statutory protections. AGI has denied wrongdoing in those proceedings and, in at least one case, has sought to compel arbitration. The litigation comes at a pivotal time for AGI. The North American ground handler, which was acquired by private equity firm Lone Star earlier this year, has publicly stated its ambition to expand into Europe through acquisitions once market conditions allow.

Dietrich joins American Airlines' board of directors

Ex-executive vice president and chief financial officer of FedEx, John Dietrich, has been elected to American Airlines' board of directors. Dietrich, who has 35 years of experience in the aviation and air cargo industries, will serve on the board's Audit Committee and Finance Committee. He most recently served as executive vice president and chief financial officer of FedEx Corporation from 2023 to June this year. He led the company's global finance organisation and helped advance initiatives focused on efficiency, cost discipline and long-term value creation. FedEx announced in April that Dietrich would step down from his roles upon successful completion of the spin-off of FedEx Freight into a new publicly traded company. Prior to joining FedEx, Dietrich spent more than two decades at Atlas Air Worldwide, where he held numerous senior leadership roles, including president and chief executive and member of the board of directors. He was appointed president of Atlas in 2019 and previously served as chief operational officer, with responsibility for all aspects of the company's global operations. Earlier in his career, Dietrich served as general counsel for Atlas and spent more than a decade at United Airlines, the majority of the time as an attorney. American Airlines' chairman Greg Smith said: "John possesses a distinguished professional background and a proven track record over his 35 years of aerospace leadership. "His extensive experience -- coupled with his reputation and success in managing complex, capital-intensive operations as well as his insights into financial discipline, risk management and governance -- will significantly enhance the board's capabilities as we prioritise long-term performance and shareholder value." Robert Isom, chief executive of American, commented: "John has a deep understanding of our industry and a proven ability to connect operational performance with financial results. "His experience leading global aviation and cargo businesses -- and his focus on execution and accountability -- will be a valuable addition to our board." Dietrich currently serves as chairman of the National Defense Transportation Association and on the boards of AAR Corporation and First Horizon Corporation. He is also a former member and chairman of the National Air Carrier Association and a former member of the International Air Transport Association Board of Governors.

Asia shippers report continued volatility and predict demand growth in H2

Shippers based in the Asia Pacific region are expecting cargo demand to grow this year, but also expect supply chain disruption to continue. A survey of 180 Asia Pacific shippers carried out by freight forwarder Dimerco showed that 71% are expecting air and ocean cargo demand to increase in the coming six months, fuelled by underlying trade growth but also defensive behaviours in response to geopolitical volatility. These defensive behaviours include rerouting, front-loading and modal shift. Asked why they expected demand to grow, 32.7% said geopolitical factors, 30.5% said demand growth, 20.4% said economic conditions, 12.2% said capacity changes and 4.1% said inventory adjustments. The survey also revealed that most shippers experience supply chain disruption on a regular basis, with 58.8% saying shipments are delayed on a monthly basis, 15.7% on a weekly basis and 15.7% saying one or two times a year. Geopolitical disruption, port congestion and customs or regulatory delays were given as the three main reasons for the disruption. "The effect is concentrated on major trade lanes. Asia-North America was the most frequently cited lane for both air and ocean users, selected by 57% of active air users and 61% of active ocean users. Asia-Europe ranked second," the survey found. Dimerco says companies using these corridors should watch policy changes, carrier allocation and gateway congestion through the second half of the year. The survey also looked at what the top operational challenges are for the airfreight market, with rate volatility, schedule reliability, geopolitical disruption, capacity constraints and customs clearance delays being the main concerns. Meanwhile, the survey also revealed that 42% of shippers surveyed had changed their primary logistics provider in the past 12 months. Among switchers, 70% cite pricing and 60% cite service reliability; 35% select both. Better regional coverage is a reason for 25%, followed by capacity availability and digital visibility. Other key findings include 92% of respondents saying freight rates increased over the past year, and 84% say they have changed shipment strategy frequently or occasionally because of disruption. "Delays are no longer occasional exceptions," Dimerco said, adding: "That changes the planning conversation. Rate negotiation matters, but the report suggests shippers also need route options, compliance readiness, allocation planning and clear decision thresholds before disruption hits." Dimerco recommended that shippers plan for higher demand without assuming smoother execution; treat disruption as a standing operating condition; build extra protection around ocean reliability; use air selectively as a pressure-release valve; compare modes on total economics and risk; and evaluate providers across price, execution and resilience.