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.
Philippine Airlines Faces Ban for Transporting COVID-Infected Passengers
[supsystic-social-sharing id='3']Hong Kong has banned Manila to Hong Kong flights after authorities say the airline allowed three COVID-infected passengers to travel into the city from the route. The stoppage is the latest troubling indication that the Pandemic is far...
The Ongoing Pandemic Spells Trouble for Airlines
[supsystic-social-sharing id='3']While this has been a summer of recovery for the nation's airlines, there are mounting signs that the party could be over. Despite July being a hopeful month for the carrier, American Airlines recently told investors that August...
How the Machinists Union is Critical to the Afghanistan Evacuation Efforts
[supsystic-social-sharing id='3']The IAM is proud to be the largest aerospace, airline, and defense labor union in North America. The recent evacuation efforts of thousands of U.S. citizens and allies in Afghanistan have been made possible by IAM members throughout...
141 Report: Summer Fun, Fundraising, and Politics
Dave Lehive was at the Local 1487 Golf Outing last week, where the sold-out event attracted 144 golfers on a beautiful summer day. This was the Chicago local’s biggest fundraising event of the year to benefit Guide Dogs of America and Tender Loving Canines. Dave...
Related News
AROUND THE UNION: Huge Investment for IAM Aerospace Workers
Huge Investments for Machinists Union Aerospace WorkersIAM141.org2 February 2022 Qatar Airways announced this week that they would purchase 34 new Boeing 777X freighters and a surprise purchase of Boeing 737 MAX, both of which are built by IAM members. These orders...
141 Report: Safety Director for Hawaiian Airlines, Ku’ulei McGuire
141 Report: Safety Director for Hawaiian Airlines, Ku'ulei McGuireYouTube 4 Februrary 2022 Sister Ku'ulei McGuire joins the 141 Report from Honolulu Hawaii as she talks about her new position as IAM District 141 Safety Director at Hawaiian Airlines. Podcast Host...
The 2022 Adolph Stutz Memorial Scholarship Essay Contest is NOW OPEN!
The 2022 Adolph Stutz Memorial Scholarship Essay Contest is NOW OPEN!Education1 February 2022Thousands of dollars in scholarship money will go out. Union members and their families can compete for $8,000 in scholarship money through the 2022 Adolph Stutz Memorial...