The JetBlue-Spirit Merger and the Risk to Job Security

Organizing
9 August 2022

The JetBlue and Spirit merger presents a significant risk to the job security of those workers who do not have contractual employment protections. Why?

“Asset divestitures can smooth the way to antitrust approval.We have a path to close this deal,”
-CEO Robin Hayes

The JetBlue-Spirit merger will have to receive approval from the federal government to be finalized. With airfares soaring and countless operational problems, it is expected that the Biden Administration will be VERY apprehensive to approve any airline merger. This is especially true for the JetBlue-Spirit merger, as the Biden Administration has already sued JetBlue and American, alleging the airlines’ Northeast Alliance is a de facto merger that hurts competition in the New York and Boston markets. So what will JetBlue have to do to gain regulatory approval for its merger with Spirit?

Two words: Divest operations to address the issue of competition. So, for example, where JetBlue and Spirit both have significant operations—think FLL, MCO and other locations—to gain approval for the merger JetBlue will have to give up a portion of its flight schedule to other airline/s. That means JetBlue is bound to divest in many locations, which means a reduction of the current combined flights of Spirit and JetBlue. And that affects jobs. 

And, if the merger is ultimately approved, a big if, it will not happen until the first half of 2024. A lot can happen in 15-18 months. There can be an economic slowdown, happening now as the GDP has decreased in the last two quarters, or a significant change in the leadership philosophy of the combined carrier. 

JetBlue management’s objective, as stated in its latest second-quarter earnings report, is to get the merger with Spirit approved and to implement a severe cost containment strategy with its newly announced “Enterprise Planning Team.” 

What does that mean for outsourcing and general job security? Future wage and benefit improvements? Work rule enhancements? 

The only way that JetBlue GO Crewmembers will be able to have a say in their future is by having a seat at the table. Not by being on the menu.

IAM Airline Workers Need Action: 23 Days Until Relief Expires

The airline Paycheck Support Program contained in the CARES Act is set to expire on October 1, 2020. Carriers are making plans on how to deal with its loss, and the outlook doesn’t look good for many IAM members and other airline workers. American Airlines has...

Back From Labor Day, We Have Important Work to Do.

Sisters, Brothers and Friends of the IAM, For all the changes and hardship 2020 has brought upon us, I know one thing will remain the same—working people like us, the men and women who make North America move—will be offered thanks this Labor Day weekend. And while I...

New Jersey Rep. Gottheimer Affirms Support for PSP Extension

“We’re With You. We Were There Early, We Cannot Walk Away Now. I’ll continue to fight.”New Jersey State Council of Machinists President Ines Garcia-Keim, District 141 Legislative Director Dave Roderick and Communications Representative Dave Lehive joined 40 union...

Related News

141 Report: Frank A. Marco, Trusted Partner in Labor Law

141 Report: Frank A. Marco, Trusted Partner in Labor Law

Mr. Marco is a Partner in the firm and manager of the firm’s labor law department.  He also serves as General Counsel to the International Association of Bridge, Structural, Ornamental, and Reinforcing Iron Workers.  Mr. Marco also represents numerous union employee...

Barb Martin Appointed District 141 Vice President, East

Barb Martin Appointed District 141 Vice President, East

In a unanimous vote, the IAMAW District 141 Executive Board appointed Barb Martin as Vice President, East, effective on March 1st.    Mensaje en español>> In a unanimous vote, the IAMAW District 141 Executive Board appointed Barb Martin as Vice President,...

Share This