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JetBlue: Pilot unionisation is a threat to busniness model

7-Jun-2011

JetBlue CEO Dave Barger has stated the efforts by the Air Lines Pilots’ Association union to unionise its pilots could challenge the carrier's business model, because of the knock-on effects on its corporate culture. JetBlue is non-unionised and its pilots voted against unionising in 2009, but the ALPA has been pushing for representation at the carrier.

Mr Barger stated unionisation could lead to a “huge cultural change to our company” as it looks to develop its operations, flying larger aircraft and expanding its links with other carriers. Shares in JetBlue fell 1.8% yesterday, as US markets ended the day weaker.

Allegiant Air reported the following traffic highlights in May-2011:

  • Passenger numbers: 464,983, -3.7% year-on-year;
  • Passenger load factor: 88.1%, +0.2 ppt;
  • Flights: 3,785, -3.7%;
    • Apr-2011:
  • Scheduled revenue per ASM: +23.9%;
    • May-2011*:
  • Scheduled revenue per ASM: 34.6% to 35%.

*estimated

airberlin reports (06-Jun-2011) the following traffic highlights in May-2011:

  • Passenger numbers: 3.3 million, +3.9% year-on-year;
  • Passenger load factor: 75.8%, +2.1 ppts.  

WestJet reports (06-Jun-2011) the following traffic highlights in May-2011:

  • Revenue passenger miles: +3.1% year-on-year;
  • Passenger load factor: 74.8%, -2.9 ppts.  

Selected LCC share price movements (% change): 6-Jun-2011


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