For quite a few years now, the Big 3 US airlines and their main lobbying group, Airlines for America, have had a serious problem with the Gulf carriers. Specifically, they believe Emirates, Etihad and Qatar Airways are receiving sizable subsidies from their respective governments. They believe this creates a lopsided playing field that US airlines can’t compete on. The unions of the airlines believe this costs them jobs. Yesterday we learned Qatar Airways intends to purchase a 10% stake in American Airlines, a publicly held company. It took many folks […]
I’ll admit, I was a little surprised when I saw that management at American Airlines had agreed to give flight attendants the $81 million a year they lost in arbitration just a week ago. This struck me almost immediately as a really solid decision by management. Given that American Airlines generated almost $1 billion in profit in the most recent fiscal quarter, giving $81 million a year that the flight attendants collectively talked themselves out of certainly should help smooth the relationship further. There were reports that some flight attendants […]
With the help of arbitration, the flight attendants at American Airlines all have one contract. Unfortunately for them, the path this took left a considerable amount in management’s pocket.
Running a bit behind while having a great time on vacation. The flight attendants ratified their new contract with American Airlines on Sunday. The disappointing (though not surprising) part is that just over 40% of the flight attendants rejected the contract offer. The union continues to make statements about how they prefer a merger with US Airways, but preferring a merger and outright rejecting an offer that’s almost assuredly better than what you’ll get if the bankruptcy judge voids your contract is just not smart. And it seems pretty clear […]
A couple of recent developments appear to add complexity to AA’s push through bankruptcy: The pilots union has agreed to put AA’s latest offer out to it’s members for a vote. Because of this, the bankruptcy judge has delayed his decision until August on whether or not to invalidate the union contracts. On Tuesday, various media outlets were reporting that two other AMR unions were interested in re-starting contract talks. I’m not exactly sure where this puts us in the AA bankruptcy saga. On one hand, it’s good to see […]