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.
Canada Will Require All Airline Employees and Passengers to be Vaccinated
[supsystic-social-sharing id='3']All Canadian forms of mass travel will soon require proof of vaccination for both passengers and employees. The new rules will include commercial air travel, trains, busses, and all federal workers. The International Association of...
Support Services Available for Veterans
[supsystic-social-sharing id='3']Veterans from all generations are processing the news of what is currently unfolding in Afghanistan and could be experiencing a wide range of emotions and feelings right now. The IAM Veteran Services Program is proud to share resources...
Hawaiian Airlines Will Require Employee Vaccinations for COVID-19
[supsystic-social-sharing id='3']Last week, Hawaiian Airlines announced plans to require all US-based employees to be vaccinated against COVID-19. The new policy will make Hawaiian the fourth airline to issue a vaccine requirement for employees. Delta issued vaccine...
Airline Business Weaker Due to Delta Variant
[supsystic-social-sharing id='3']While summer traffic has been promising, there are troubling signs that the profit season for airlines may have peaked early - due to the continuing Pandemic. TSA bookings year over year show positive growth throughout commercial...
Related News
141 Report: New-Hire Union Outreach and Education
141 Report: New Hire Outreach and Education ProgramYouTube21 January 2022In this week’s 141 Report, host Dave Lehive sits down with two new 141 union educators who are involved with efforts to educate new hires about unionism, Sean Rosario and Bruno Pereira.Most...
Full Text of Hawaiian Airlines Tentative Agreement is Ready
[supsystic-social-sharing id='4']Tentative Agreement Reached at Hawaiian AirlinesSisters and Brothers, As promised last week, the proofing process for the Tentative Agreements at Hawaiian Airlines is complete, and we are happy to present them to you this morning for...
Here’s Why Airlines Are So Worried About 5G
Here's Why 5G Is Such a Big Deal For Airlines in the US Right Now IAM141.org19 January 2022 Airlines are concerned that recent rollouts of 5G service by Verizon and AT&T could interfere with sensitive flight instruments, laying the groundwork for flight...





