Aviation Industry Updates: Oct 3, 2023

United Airlines Pilots Accept New Labor Contract

KEY POINTS:

• United Airlines' (UAL.O) pilots have ratified a new four-year contract that includes a significant pay increase and other benefits, the union representing the pilots said on Friday.
• A committee represented by the Air Line Pilots Association, International (ALPA) reported 82% of the airline's pilots voted in favor of a new comprehensive working agreement that adds more than $10 billion of value to the existing contract.
• About 97% of eligible pilots participated in the ballot.
• The pilots will get a cumulative 34.5% to 40.2% increase in pay in the new four-year contract, as well as better work-life quality, sick leave, work rule and vacation improvements, and an increase to retirement benefits for United's 16,000 pilots.
• The Chicago-based carrier's shares were up 1.5% in morning trade.
• Pilot shortages in the United States have been persistent and are expected to last for years after many aviators left the industry during the pandemic. Analysts at Jefferies estimate the United States has a shortage of about 10,000 pilots.

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JetBlue Raises Flight Attendant Pay, Union Agrees To Support Merger With Spirit

KEY POINTS:

• JetBlue Airways said it will raise flight attendant pay next year and provide other bonuses to staff while the union representing cabin crews agreed to support the carrier’s plan to acquire budget carrier Spirit Airlines
• Starting in November, flight attendants will get 5% raises. Including another 2% raise, a slate of other incentives and previously negotiated raises under flight attendants’ union contract, their raises in 2026 will compound to 21.5% increases, according to a company memo, which was seen by CNBC Friday.
• The raises come as the New York-based carrier is in the process of trying to acquire Spirit, a merger the Justice Department has sued to block. A trial for that lawsuit is set to begin on Oct. 16 in Boston.
  JetBlue agreed not to furlough or displace any flight attendants or close any associated bases for seven years after a potential acquisition of Spirit goes through, the memo said.
• “The current contract was negotiated during COVID, and since then our inflight crewmembers pay rates have fallen below other airlines by a significant margin,” a JetBlue spokesman said in a statement. “Because our inflight crewmembers play a significant role in delivering the JetBlue experience, it’s important that we’re able to attract and retain high-quality crewmembers with competitive pay and benefits.”
• The union said it would, in turn, support the planned acquisition of Spirit.

CNBC

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AOPA’s Richard McSpadden Dies In Crash

KEY POINTS:

• Richard McSpadden, the senior vice president of the AOPA Air Safety Institute, died, along with one other person, in the crash of a Cessna 177RG near Lake Placid Airport in upstate New York Sunday. McSpadden was in the right seat. Russ Francis, a former NFL tight end and the new owner of Lake Placid Airways, was in the left seat according to the Lake Placid News. AOPA spokesman Eric Blinderman told AVweb early reports indicate the Cardinal had “an emergency on takeoff” from Lake Placid shortly before 5 p.m. “They tried to get back but didn’t make the runway,” said Blinderman. The nature of the emergency wasn’t immediately known. He said more information will be available on Monday.
• McSpadden was a former commander of the USAF Thunderbirds air demonstration team and joined the Air Safety Institute in 2017. He was well known in the GA community for his analyses of accidents and the safety-related content he and his staff created for free distribution. He was also highly regarded by his many friends and colleagues. “We are beyond heartbroken,” said Blinderman. “This is the worst kind of news to process as a friend, colleague and fellow aviator.” He is survived by his wife, Judy, son Grant and daughter Annabel.

AvWeb

Delta CEO Apologizes, But Will Angry SkyMiles Frequent Flyers Ditch Airline For Alaska Or JetBlue?

KEY POINTS:

• Loyalty is strong. But loyalty is fragile.
• Delta Airlines may be learning that lesson this week, after the company’s “updates” to its SkyMiles loyalty program ignited worldwide fury. Meanwhile, sensing opportunity, smaller rivals Alaska Airlines and JetBlue offered status matches meant to snatch disaffected Delta loyalists away.
• The changes Delta announced meant that achieving coveted Medallion status membership will now require spending significant amounts of money, either directly with Delta or with its credit card partner American Express. Lounge access was limited or entirely cut for some flyers, like those with Basic Economy tickets, while the spending required to reach Medalion status was increased 50%.
• Why is Medallion status so desirable? Delta says benefits include perks like upgrade certificates, lounge access for member and guests, more SkyMiles per dollar spent, priority boarding, priority check in, priority security line access, free luggage, even onboard drink vouchers. The goodies are doled out by ‘tier’, which are Silver, Gold, Platinum and Diamond.

Forbes

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2023 FINAL HIRING EVENT

RTAG | OCT 7-8 | FTW