JetBlue Pilots Want Back To Bargaining After Spirit Merger Collapse

JetBlue’s pilots union, which has 5,000 members, has filed formal Section 6 of the Railway Labor Act notice to negotiate a new contract with airline management. For the union, this is about realigning the pilot’s contract to the new vision for JetBlue.

Part of the fallout from failed merger

As well documented, JetBlue Airways attempted to merge with Spirit Airlines, but after fierce regulatory resistance resulting in time-consuming litigation, JetBlue decided to terminate the deal. During that merger attempt, an interim contract was agreed to ensure the best chance of success for the merger attempt.

Related

JetBlue Pilots Get 21.5% Raise In New Contract

The airline’s pilots will see the salary hike over the next 18 months.

However, the contract between the Air Line Pilots Association (ALPA) chapter representing JetBlue pilots and JetBlue management was for two years. As per an ALPA April 3 statement, Capt. Justin Houck, head of the JetBlue ALPA Master Executive Council, shared these expectations,

JetBlue new CEO focused on profitability.

These negotiations will be facing JetBlue’s fiscal upwinds, as they come at a time when JetBlue is working to improve its balance sheet. On March 12, JetBlue management presented at the J.P. Morgan 2024 Industrials Conference a desire to be, “Reshaping cost structure in light of current operating environment”. Additionally, the new CEO made clear at the conference that CEO Joanna Geraghty wanted a focus on “returning to the business fundamentals” plus “returning to profitability” as “our number one focus” to help shareholders, including employees.

Photo: Vincenzo Pace | Simple Flying

Plus, there was a presentation slide that said the JetBlue network would be,

“Reallocating capacity from underperforming markets to proven, high-value leisure and visiting-friends-and-relatives geographies.”

Clearly, the JetBlue pilots will seek a contract that guarantees no loss in work and compensation while managing the promised changes already underway – such as a new baggage fee schedule. CEO Geraghty rose through the JetBlue executive ranks, including executive vice president and chief people officer from 2010-2014, and as such, has relevant experience in steering an airline through labor negotiations.

But pilots’ union has different ideas for profitability

As Captain Houck also added in the ALPA April 3 statement,

“Making this airline a career destination for our 5,000 pilots, as well as the next generation of JetBlue pilots, should be fundamental to the airline’s business plan to move forward after the scuttled merger with Spirit Airlines and to grow and return to sustained profitability. That starts with a contract that properly values our pilots’ singular contribution to the current and future success of our airline.”

One should note in the past few years that, while JetBlue pilots worked under an interim contract hoping for a joint bargaining agreement as part of the JetBlue-Spirit merger attempt – other major US airlines such as Alaska Airlines, American Airlines, Delta Air Lines, Southwest Airlines and United Airlines have concluded contract negotiations setting new standards and expectations for pay. Negotiating such contracts is also a process, and the notice is only the first step. One can read a guide below:

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A Look At How Airline Labor Negotiations Are Carried Out

A basic blueprint for how US airline labor negotiations are conducted, complete with some history lessons.

Bottom line

JetBlue clearly needs to return to profitability and also needs to retain the most expensive and trusted workgroup in a very competitive market with rising wages to compensate for years of training. This is arguably CEO Joanna Geraghty’s first big test of leadership.

What are your thoughts? Please share with civility in the comments.