Loading

US LCC employment levels stable, but overall airline employment falls to 17 year low: LCC share wrap

Analysis

US Department of Transportation's Bureau of Transportation Statistics (BTS) reported that US LCCs employed the same number of workers in Dec-2009 as in Dec-2008, with four LCCs reporting year-on-year full-time equivalent employee (FTE) increases: Allegiant Air (+16.1%), Virgin America (+12.9%), AirTran Airways (+4.7%) and JetBlue Airways (+4.6%).

US scheduled passenger airlines employed 3.3% fewer workers in the month, for the 18th consecutive monthly reduction in FTE levels, and putting the figure at a 17-year low.

Southwest, Spirit and Frontier reported year-to-year FTE decreases. The six LCCs reporting employment data in both 2005 and 2009 employed 14.2% more FTEs in Dec-2009 than in Dec-2005, led by Allegiant with a 182% increase. Spirit reported the only four-year decrease within the LCC group, down 6.8%.

Vietjet AirAsia to become operational in May-2010

In the Asia Pacific region, AirAsia's (+3.6%) newest JV partner, Vietjet AirAsia, is reportedly expected to become operational in May-2010, with procedures for the purchase completed and the acquisition of a 30% stake in VietJet Aviation Joint Stock Co (VietJet Air) by AirAsia approved by Vietnam's Ministry of Transport on 09-Feb-2010.

Also in the Asia Pacific region, Virgin Blue's shares gained 4.0%, on the same day the International Air Services Commission confirmed it received an application from V Australia seeking to transfer to Pacific Blue Australia 360 weekly seats previously allocated from Pacific Blue to V Australia, for use in the Australia-Fiji market.

You can keep in touch with all the LCC news from around the world every morning with Peanuts Daily.

Selected LCCs daily share price movements (% change): 22-Feb-2010

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More