New Push to Unionize Delta Flight Attendants

delta plane
Nov 05 2019

CEOs of American and United are pumping their fists in the air with news that the Association of Flight-Attendants-CWA has launched an effort to unionize Delta flight attendants. Finally, they’re thinking, their more profitable competitor may be saddled with the same onerous work rules that United and American face – and perhaps the better service flight attendants provide will go away in the long run, too.

Delta flight attendants can choose a union, with the costs and job protections that provides. However they can expect profit sharing to fall, the raises they’re getting without negotiation to go away. They won’t keep these things because the higher cost of unionization will trade off with wages (the value of the wage can’t exceed the value of marginal product) and because Delta will have to signal to mechanics that unionization doesn’t deliver benefits.

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British Airways Parent Company Acquires SkyTeam Member Air Europa

Nov 04 2019

IAG, parent of British Airways, also owns Iberia, Aer Lingus, Vueling, and LEVEL. Now for the price of €1 billion they’re acquiring Air Europa (10 times current earnings). The deal is expected to close in the second half of 2020.

They are currently the third largest Spanish airline, behind Iberia and Vueling already owned by IAG. This is a blow to transatlantic redemptions using Delta miles.

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I Flew the Spirit Airlines Big Front Seat: A Whole Different View of Travel

Nov 03 2019

I finally had my first taste of the Spirit Airlines Big Front Seat. On my way home Chicago O’Hare to Austin after United Airlines Media Day I flew Spirit Airlines. I bought my one-way in a “Big Front Seat” (a domestic first class-ish seat without extra benefits) for $118.29. A coach seat on American or United would have been $225 and I’d have had to wait around the airport two and a half hours longer for either. Spirit seemed like a no-brainer.

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