| From: Sam | 5/4/2023 8:03:10 AM | | | | | | Delta's pilot deal turns up the heat on rival airlines' union negotiations
Reuters May 04, 2023 06:00:00 AM ET
May 4 (Reuters) - Delta Air Lines' industry-changing pilot contract that offers $7 billion in higher pay and benefits is putting pressure on rival carriers to hand out similar deals ahead of a busy summer travel season.
Any proposal that falls short of Delta's deal will likely have no takers among the unions, but airline executives say even matching that contract could balloon operating costs at a time when a worsening economy has clouded travel outlook. The Delta deal, working conditions and other topics will be discussed at a global conference of pilots in Montreal through Sunday.
"Delta is out there as a marker," American Airlines CFO Devon May told Reuters. "That's what we are looking towards as we are working with our pilots union to get a deal done."
The Fort Worth, Texas-based carrier has estimated that matching Delta's offer will cost it about $8 billion over four years. American Airlines, United Airlines and Southwest Airlines are all in the middle of contract negotiations with their pilots.
Southwest and United have not quantified the potential impact publicly, but both expect a marked increase in non-fuel operating costs.
Jason Ambrosi, head of the Air Line Pilots Association (ALPA) and an architect of Delta's deal, told Reuters the big increases in pay rates and benefits will not break airlines. They serve as a way for pilots to make up for concessions made during earlier crises like after Sept. 11, he said.
"Guess what? That's what pilots are worth," Ambrosi said. "I'm not going to make any excuses for why we got the deal we got."
But some industry officials say hefty raises for pilots will likely spark demands for similar deals from flight attendants and other workers, potentially resulting in millions of dollars in additional costs.
Delta, whose earnings have recovered from pandemic lows faster than rivals, has to deal with just one major union. Its flight attendants are not unionized. But American, United and Southwest have unions with multiple worker groups.
Delta's deal has put competitors in a bind.
One Southwest official, who asked not to be identified discussing labor talks, said the company is "realistic" about the situation and any deal less than Delta's would likely be voted down.
Airlines have leaned on higher ticket prices amid strong travel demand to mitigate cost pressures, but consumer spending is at risk.
MARKET SHIFT
Industry executives say Delta's agreement has shifted the market. The carrier's pilot union said it made no concessions in the deal, which included dozens of work-rule improvements and quality-of-life related items.
In an update to its members this week, United's pilot union said it is seeking similar improvements.
Dennis Tajer, a spokesman for American's pilots union, said while pilots are not ready to sacrifice market-linked compensation, work-life balance and scheduling certainty have become a far bigger priority.
"The new currency for our pilots, regardless of age, is quality of life," he said. "Delta came in and changed what pilots believed was possible."
American pilots have voted to authorize a strike if a new employment contract isn't reached. Southwest pilots are voting for a similar measure and United pilots are picketing.
While pilots cannot walk off the job until the National Mediation Board grants them permission, union officials warn further delays will make it harder to attract and retain talent and that impacts airlines' flight schedules.
United executives declined to provide a timeline for the pilot deal. They said the airline has the pilots it needs to fly its summer schedule.
American has said it has as much as 50 underused mainline jets and about 150 regional aircraft grounded because of a shortage of pilots.
Tajer, the union rep for American's pilots, said while the company is not facing a problem in attracting pilots, it is hard pressed for enough instructors to train them. A deal will increase the population of instructor pilots, he added.
Southwest, too, has a surplus of under-utilized aircraft. Casey Murray, head of the Dallas-based airline's pilot union, said it has lost more pilots in the first four months of this year than it did in all of 2022.
ALPA's Ambrosi said any gains at larger airlines will also be felt at mid-sized players like JetBlue, Spirit , and Frontier, which will have to pay competitive wage to retain pilots or else will have an "attrition issue."
|
| | Airline Discussion Board | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Sam | 5/11/2023 10:50:26 PM | | | | | | United Airlines pilots want higher pay rates than Delta, says union head
Reuters May 11, 2023 02:53:00 PM ET
CHICAGO (Reuters) - United Airlines will need to offer higher pay rates than what rival Delta Air Lines gave to its pilots under a new contract, its pilot union head Garth Thompson said. |
| | Airline Discussion Board | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Sam | 5/11/2023 10:52:02 PM | | | | | | Southwest pilots vote to authorize strike
Reuters May 11, 2023 03:03:00 PM ET
(Reuters) - Southwest Airlines Co pilots' union said on Thursday its members had approved a strike mandate by an overwhelming majority ahead of the busy summer travel season.
The Southwest Airlines Pilots Association (SWAPA), which represents 10,000 pilots of the Dallas-based carrier, said 98% of its members participated in the vote and 99% voted in favor of authorizing a strike.
Southwest said the vote result will not impact its operations: "We are staffed and prepared to welcome travelers for their summer travel plans."
Southwest has been under regulatory scrutiny since a staffing crisis due to bad weather during the Christmas holidays overwhelmed its crew scheduling software, disrupting travel plans for 2 million customers.
"Pilots (have) already made their voices heard about the operational disasters and the lack of progress after three-plus years of stagnant negotiations," SWAPA said.
Earlier this month, pilots of American Airlines Group also approved a strike mandate.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Vinay Dwivedi)
|
| | Airline Discussion Board | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: Sam who wrote (1802) | 5/12/2023 12:11:35 AM | | From: Sam | | | | More on LUV, from WSJ--
Southwest Pilots Vote to Authorize a Strike -- WSJ
Dow Jones Newswires May 11, 2023 04:25:00 PM ET
Pilots at Southwest Airlines voted to authorize a potential strike, seeking to ramp up pressure in yearslong contract negotiations with the company.
The Southwest Airlines Pilots Association said it released the results of the referendum early after votes came in more quickly and decisively than it expected, with 98% of pilots participating and 99% voting to authorize a potential strike.
Still, the vote doesn't mean pilots are likely to walk out in the near future, as federal law makes it difficult for airline unions to go on strike.
Southwest said the vote would have no impact on its scheduled operations. The union said Thursday that the results of the vote would empower it to seek to be released from mediated talks in order to strike.
Pilots at three major airlines are in the midst of negotiating new labor deals. Such talks often become heated, but an industrywide shortage of pilots that emerged after carriers encouraged thousands to retire during the Covid-19 pandemic has changed the typical dynamics. Pilots' unions have had more leverage to push for increased pay as well as changes in scheduling practices that they say will improve their quality of life.
Southwest and its pilots have been in negotiations for over three years as the pilots have pushed for a major overhaul of the company's scheduling practices. The union has emerged as one of the airline's sharpest critics in the wake of its operational meltdown at the end of last year, arguing that the disruption is evidence of deeper problems within the company.
"The lack of leadership and the unwillingness to address the failures of our organization have led us to this point," said Capt. Casey Murray, the union's president.
Adam Carlisle, Southwest's vice president of labor relations, said the vote wouldn't change the airline's commitment to the negotiating process. "Our negotiating team continues to bargain in good faith and work toward reaching a new agreement to reward our pilots," he said.
Such votes have been a common tactic in airline negotiations, though actual walk-offs have been rare in the U.S. American Airlines Group pilots also voted overwhelmingly in favor of a similar strike authorization earlier this month, though the airline has said the two sides are making progress toward a deal.
Pilots at Delta Air Lines also voted to authorize a strike last year before eventually reaching a deal that set a new high-water mark for pilot pay and included raises of at least 34% over its four-year term.
The law that governs U.S. airline labor contracts requires that both sides exhaust all efforts to resolve their disputes before workers can strike. The National Mediation Board, which is already overseeing the negotiations between Southwest and its pilots, would have to agree that talks had reached an impasse and offer the sides a chance to arbitrate before releasing them into a 30-day "cooling off" period. The president and Congress could also then intervene.
Write to Alison Sider at alison.sider@wsj.com
|
| | Airline Discussion Board | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Sam | 5/17/2023 12:27:54 PM | | | | | | Pilots are getting feisty everywhere.
CORRECTED-FedEx Express pilots vote in support of strike - ALPA union
Reuters May 17, 2023 12:23:00 PM ET
(Corrects paragraph 2 to says over 97%, not 99%, took part in the vote and that 99% of them, not 97%, authorized a strike)
May 17 (Reuters) - Pilots of FedEx Express, a unit of FedEx Corp, have voted "overwhelmingly" in support of a strike, the Air Line Pilots Association (ALPA) said on Wednesday.
From over 97% of members who participated in the vote, 99% authorized union leaders to call a strike, if needed, to achieve a new contractual agreement with the delivery firm.
FedEx pilots are currently working under contractual provisions and benefits arrived at in 2015, and negotiations for a new agreement had begun in 2021.
"The ball is in the management's court, and it's time for the company to get serious at the bargaining table and invest in our pilots," said Chris Norman, chair of the FedEx ALPA master executive council.
FedEx did not immediately respond to a Reuters request for comment.
Its shares erased gains to trade roughly flat after the announcement.
Pilots are pushing for better contracts at airlines and parcel firms amid a shortage of aviators. Earlier this month, Southwest Airlines Co's pilots union said its members had approved a strike mandate by an overwhelming majority ahead of the busy summer travel season.
Under U.S. law, pilots cannot walk off the job until the National Mediation Board grants them permission.
The board must first decide that additional mediation efforts would not be productive and offer the parties an opportunity to arbitrate. If either side declines, both parties enter a 30-day "cooling off" period, after which pilots and management can engage in self-help - a strike by the union or a lockout by management.
|
| | Airline Discussion Board | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Sam | 5/19/2023 10:07:05 AM | | | | | | American Airlines pilot reach an agreement on new contract
Reuters May 19, 2023 09:56:00 AM ET
CHICAGO, May 19 (Reuters) - Pilots at American Airlines have reached an agreement in principle on a new contract, their union said on Friday. |
| | Airline Discussion Board | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Sam | 5/19/2023 5:13:26 PM | | | | | | | Judge Rejects Partnership Between American Airlines and JetBlue -- Update | |
Dow Jones Newswires May 19, 2023 04:41:00 PM ET
A federal judge ruled in favor of the Justice Department's effort to unwind a partnership between American Airlines and JetBlue, finding that their arrangement suppressed competition in key northeast markets.
American and JetBlue formed their Northeast Alliance in 2020, agreeing to work together across three New York-area airports and Boston. The Justice Department, along with six states and the District of Columbia, in 2021 filed an antitrust suit seeking to unwind the alliance, alleging it has eroded competition and will push up airfares for fliers. A trial was held in federal court in Boston last year.
U.S. District Judge Leo Sorokin on Friday ruled against the companies, finding that the arrangement transformed once fierce rivals into collaborators. He barred the airlines from continuing the partnership.
The partnership "has eliminated the once vigorous competition between two of the four largest domestic carriers in the northeast, replacing it with broad cooperation in pursuit of the shared interests of their partnership," the judge wrote.
The court ruling is a boost to the Biden administration's more aggressive approach to antitrust enforcement, which has suffered a series of setbacks in other recent cases.
JetBlue and American had argued that they needed to join forces to effectively challenge rivals in New York and Boston. Sorokin said the argument was unconvincing.
Neither airline responded to requests for comment. The Justice Department didn't immediately respond to a request for comment.
Write to Alison Sider at alison.sider@wsj.com |
| | Airline Discussion Board | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: Sam who wrote (1806) | 5/19/2023 6:05:30 PM | | From: Sam | | | | More details on the AAL and JBLU rejection.
| American and JetBlue must end alliance, US judge rules | |
Reuters May 19, 2023 05:57:00 PM ET
WASHINGTON, May 19 (Reuters) - American Airlines Group must end its alliance with JetBlue Airways Corp , a federal judge ruled on Friday, agreeing with the U.S. Justice Department that the arrangement means higher prices for consumers and ordering the companies to part ways within 30 days.
The decision represented a victory for President Joe Biden's administration, which has taken a hard line on consolidation and tie-ups in the aviation industry. The Justice Department, six states and the District of Columbia sued in 2021 to unwind the deal announced in 2020, calling the "Northeast Alliance" a "de facto merger" of the American and JetBlue Boston and New York operations that removes incentives for them to compete.
In his ruling, U.S. District Judge Leo Sorokin said the partnership "substantially diminishes competition in the domestic market for air travel."
"These two powerful carriers act as one entity in the northeast, allocating markets between them and replacing full-throated competition with broad cooperation," the judge wrote.
American is the largest U.S. airline by fleet size and low-cost carrier JetBlue is the sixth-largest. The airlines use the alliance to coordinate flights and pool revenue.
JetBlue shares fell 1.8% for the day, while American closed down 1.5%.
Both airlines said after the ruling they were evaluating their next steps.
JetBlue said it was disappointed with the decision and that the "Northeast Alliance has been a huge win for customers" by extending the airline's low fares "to more routes than would have been possible otherwise."
American said, "The court's legal analysis is plainly incorrect and unprecedented for a joint venture." It added that the alliance "has been a huge win for customers and anything but anticompetitive."
The Justice Department did not immediately respond to a request for comment.
The JetBlue-American partnership was approved by the U.S. Transportation Department shortly before the end of former President Donald Trump's administration.
The Justice Department in the lawsuit said that the alliance would put nearly $700 million in extra annual costs on consumers and gives the airlines more than 80% of market share in flights from Boston to Washington and six other airports including the New York area's JFK, LaGuardia and Newark.
Lawyers for JetBlue and American have said the alliance has not raised air fares or resulted in fewer flights, has expanded flights and made the two airlines more competitive with Delta Air Lines and United Airlines on U.S. northeast routes.
Sorokin said the alliance's "effects resemble those of a merger of the parties' operations within the northeast" and that "American and JetBlue no longer compete with one another within the scope" of the partnership. The judge gave the airlines 30 days to end the alliance.
Separately, the Justice Department, joined by four states, filed a suit in March aimed at stopping JetBlue from buying discount rival Spirit Airlines, saying the planned $3.8 billion merger "will lead to higher fares and fewer seats, harming millions of consumers on hundreds of routes." The suit is set for trial in October.
TD Cowen analyst Helane Becker said she believes the American JetBlue ruling "has negative implications for the JetBlue/Spirit merger."
Airline mergers in recent years have led to a highly consolidated industry in which American, Delta, United and Southwest Airlines control 80% of domestic travel, the department said.
|
|
|
| | Airline Discussion Board | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| From: Sam | 6/27/2023 3:25:13 PM | | | | | |
| | Trending: Delta Expects to Meet High End of 2023 Adj EPS View |
|
|
| Dow Jones Newswires June 27, 2023 03:09:00 PM ET
15:09 ET -- Delta Air Lines is one of the most mentioned companies in the U.S. across all news items in the last 12 hours, according to Factiva data. Shares were higher 6% to $45.89 after Delta said it expects to reach the high end of 2023 adjusted earnings guidance of $5 to $6 a share. The airline said a "constructive industry backdrop" includes pent- up travel demand that hasn't been satisfied yet. Delta raised its 2023 free cash flow projection to $3 billion from $2 billion. Dow Jones & Co. owns Factiva. ( josh.beckerman@wsj.com )
|
|
| | Airline Discussion Board | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: Sam who wrote (1808) | 6/27/2023 3:26:52 PM | | From: Sam | | | | Airline stocks pushed higher on Tuesday after Delta Air Lines ( DAL) lifted its second-quarter profit outlook and posted full-year guidance at the high end of its prior range.
Delta Air Lines ( DAL) CEO Ed Bastian pointed to sustained travel demand during his talk at an investor event and said airline customers are still financially healthy. "Everyone is worried about the consumer, Our customer is quite strong," he noted.
Balance sheets may also be getting healthier in the airline sector, with Delta Air Lines ( DAL) guiding for free cash flow for next year of $4B, which is just a shade below the pre-pandemic level.
Even before Delta's ( DAL) guidance update, Bank of America raised its 2023 EPS estimates across the sector due to lower fuel costs in comparison to earlier in the quarter.
The entire U.S. airline sector showed a gain in late afternoon trading on Tuesday: American Airlines ( AAL) +5.90%, Delta Airlines ( DAL) +6.28%, Southwest Airlines ( LUV) +3.77%, United Airlines ( UAL) +5.49%, JetBlue ( JBLU) +9.25%, Hawaiian Holdings ( HA) +19.29%, Alaska Air Group ( ALK) +4.49%, Allegiant Travel ( ALGT) +4.33%, Spirit Airlines ( SAVE) +3.95%, Mesa Airlines ( MESA) +11.25%, SkyWest ( SKYW) +2.29%, Sun Country Airlines ( SNCY) +5.41%, Frontier Group ( ULCC) +7.25%.
seekingalpha.com |
| | Airline Discussion Board | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| |
