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.
New FAA Policies Could Ease Chaotic Summer Travel Season for Airlines
The FAA has introduced 169 new routes along the East Coast that are more direct and will save time for passengers and fuel for airlines while increasing safety. Tim Arel, the COO of the FAA's Air Traffic Organization, stated that "these improvements will help...
Another Idiot Loses It On a Flight
A violent and unhinged passenger had to be restrained on a midnight flight after violently attacking a flight attendant and opening an emergency exit.Another Idiot Loses It On a FlightIAM141.org May 3, 2023SAN FRANCISCO - A violent and unhinged passenger had to be...
Machinists Union Members Ratify Five Contracts with United Airlines
Machinists Union Members Ratify Five Contracts with United AirlinesSisters and Brothers, this evening approximately 29,000 District Lodge 141 members at United Airlines overwhelmingly ratified five contracts in the Fleet Service, Passenger Service, Storekeeper,...
Town Hall Meetings on the Cusp of a Historic Contract Ratification at United
A gathering of Machinists Union Members filed into a Town Hall Meeting to discuss seven new contractual agreements with United Airlines. At more than 50 airports around the nation, Machinists Union members have been gathering in airport Ready Rooms, Local Lodges, and...
Related News
A Message from Air Transport Territory General Vice President Richie Johnsen on September 11
Today is a day of great significance and reflection for all of us. Twenty-two years ago, the events that took place forever altered the course of history and came at a tremendous cost. As individuals, as a nation, and as a community, we share a collective sense of...
United Airlines’ Denver Hiring Spree Draws Hundreds from Guam
United Airlines officials announced today that 460 residents of Guam have relocated to Denver after accepting positions as ramp agents, following a 2-day job fair held on the island in January.United Airlines' Denver Hiring Spree Draws Hundreds from GuamIAM141.org...
99% Flight Attendants at American Vote to Authorize a Strike
On Wednesday, the Association of Professional Flight Attendants (APFA) announced that American Airlines' flight attendants have voted in favor of going on strike if the company doesn't agree to fair contract terms.99% Flight Attendants at American Vote to Authorize a...