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JetBlue: Pilot unionisation is a threat to busniness model

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