AA & Southwest Airlines: labour strife; plus ça change....
For all the conclusions drawn by senior executives that the US airline industry has moved into a new era of sustained stability, one mainstay from the past remains in place – the onset of labour slowdowns when negotiations get tense. Both American and Southwest have suffered from slowdowns by their mechanics during 2019 and both have taken legal action to remedy those actions.
Southwest recently achieved a truce with its mechanics after forging a new five-year deal that offers generous compensation to those employees.
American remains embroiled in conflict with its mechanics at a time when the busy US travel season is now under way. And the airline’s mechanics appear to be ratcheting up their rhetoric against American, amping up their threats to strike.
The latest slowdowns reflect a never ending cycle in the airline industry, and beg a pertinent question – is there a way to mitigate impasses in negotiations other than purposeful work slowdowns that ultimately blemish airline brands?
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.